Potential Buyout Or Major Partnership? "Established cultivators of premium cannabis in Canada like MYM Nutraceuticals Inc. (MYMMF-MYM) are being sought after by larger partners foreseeing entry into the lucrative US market to the south.
"As global cannabis deregulation gains pace, led by the US, we have been approached by an increasing number of Big Tobacco, Big Pharma and leading FMCG companies, looking to invest in the Cannabis sector," said Tristan Gervais, Chrystal Capital's Head of Cannabis advisory at Europe's Cannabis Merchant Bank to CNBC.
The latest major partnership deal saw British American Tobacco pay approximately $175.81 million for a nearly 20% stake in Canada-based cannabis producer OrganiGram Holdings Inc. (NASDAQ:OGI) (TSX:OGI).
"Organigram has a proven track record of consumer-led innovation and developing high quality adult-use recreational and medical cannabis products, which are legally available in Canada," BAT said in a statement.
OrganiGram wasn't the first cannabis cultivator to sign a deal with a tobacco giant.
Back in 2018, Altria Group (makers of Marlboro cigarettes) bought a 45% stake in Canadian cannabis producers, Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) for $2.4 billion.
https://www.prnewswire.com/news-releases/us-legalization-on-the-horizon-as-lawmakers-bringing-cannabis-reforms-to-the-senate-floor-301257308.html
https://americannewsgroup.com/2021/03/15/marijuana-stocks-regain-momentum-after-being-memed-to-the-moon/