Three leading marijuana stocks could be open to the right takeover at this point in the industry
Players in the marijuana industry are gearing up for the launch of legal recreational sales in Canada later this month. Ahead of the anticipated sales, up-and-coming marijuana stocks are expected to be targets for takeover bids. Here are three marijuana stocks primed for acquisitions.
CannaRoyalty CNSX: CRZ
California’s start-up royalty company is aimed for growth that doesn’t depend on Canada. The company moved on from royalties earlier this year to focus on acquiring distribution rights for brands across The Golden State marijuana industry. Since California could surpass all of Canada in annual weed sales, CannaRoyalty is in a unique position for growth.
Unlike Canadian companies that are eligible for bank loans, the California-based CannaRoyalty is a target for takeover because it could use the funding of a deep-pocketed investor.
Canopy Growth Corp. TSE: WEED
Even the second-largest marijuana stock could entertain acquisition bids at this point in its growth. The leading suspect is Corona beer maker Constellation Brands, which has been gobbling up shares of the company since last October. Once Constellation’s August 15 equity investment of $3.8 billion is approved by regulators, it will own a 38 percent stake in Canopy.
Constellation is not expected to go for a full takeover of Canopy until it tests the success of its investment in the company.
OrganiGram Holdings CVE: OGI
Canadian grower OrganiGram Holdings has a unique appeal that could appeal to outside companies. It utilizes a creative three-tiered growing system that makes better use of its 480-square-foot facility than any other grower. This translates to higher projected annual production than growers with up to 1 million square feet of space.