Post by
happyascanbe on Oct 19, 2021 3:39pm
Canopy Growth buys Wana Brands for $297.5M (U.S.)
So another acquisition happened in the cannabis space last week. This time it was Canopy Growth buying Wana Brands for about $375M Canadian ($297M USD). Its a private company so not a lot of information on them, but found a couple references that they have annual revenue between $25M-$35M Canadian. So means that they were bought at about 11X-15x revenue.
This is the fourth acquisition in the last year of companies similar to Slang - they were Wana Brands (by Canopy), Harvest Health (by Trulieve), Liberty Health Sciences (by Ayr Wellness), and Supreme Cannabis (by Canopy). All these were acquired between 6x-15x revenue.
So with Slang trending towards $50M+ in revenues they are trading at less than 2x revenue currently. Applying the multiples of these acquisition should put Slang in the $0.60-$1.25+ range.
Just a matter of time. IMO.