DENVER, Colo., May 7, 2019- (24/7MarketNews via COMTEX)- While most weed sector deals aren’t as large as Marlboro’s Altria Group Inc. (NYSE:MO) $1.8 billion investment in Cronos (NASDAQ:CRON) (TSE:CRON), but this week’s mergers seemingly signal that the space is heating up.
At least one activist shareholder, Marcato Capital Management, will urge Acreage Holdings (OTCQX:ACRGF), at this morning’s shareholder meeting, to turn down Canopy Growth’s (NYSE:CGC) (TSE:WEED) $3.4 billion buyout offer. Marcato Capital Management stated, in a published letter to Acreage Holdings’ board, that it’s firmly against the merger, which it sees as “value destructive”.
However, there’s more merger activity this week, as Iconic Brands (OTCQB:ICNB) targeted May 8 to close its merger with Green Grow Farms, LLC. Their goal is to process one million pounds of Green Grow's farming operations biomass into approximately 40,000 kilograms of CBD Isolate, for 2019, and multiply that amount next year. Based on the current stated isolate wholesale market rates, of between $5,000 and $7500 per kilogram, the merged companies could generate $100-150 million in revenues this year and exponentially grow their annual revenues from there.
Although, technically, not a weed merger, the conventional wisdom suggests that by merging with a vertical hemp producer, Iconic should have a clearer path to most international commercial beverage markets than the cannabis infused beverages.
The week kicked off, yesterday, with Aleafia Health Inc. (OTCQX:ALEAF) (TSE:ALEF) announcing that its entering the German market by joint venturing with Acnos Pharma GmbH, a German pharma wholesaler. The 60-40, majority Aleafia, joint venture will purchase Aleafia branded cannabis oils which are scheduled to be distributed to German pharmacies and for clinical trials.
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