Cannabis Mergers, Acquisitions, and IPOs
Cannabis Mergers The Cannabis industry remains volatile, and inconsistent regulations can make expansion difficult. Nonetheless, in 2018 the cannabis industry in states like California are still finding their footing on many fronts with both a regulatory framework and banking solution being very much under construction. As these normalize, companies will be able to establish their business metrics and get a firmer idea of the size of their opportunity, and then naturally increased M&A activity will follow, as has been the norm in other states, like Oregon, Nevada and Colorado.
These companies could benefit from an increase in M&A in the Legal Cannabis space: Nightfood Hldgs Inc. (OTC: NGTF), INSYS Therapeutics, Inc . (NASDAQ: INSY), GW Pharmaceuticals Plc. (NASDAQ: GWPH), Tilray, Inc. (NASDAQ: TLRY), The Scotts Miracle-Gro Company (NYSE: SMG)
Nightfood Hldgs Inc. (OTCPK: NGTF)
Market Cap: $15.28M, current share price: $.36
NightFood manufactures and distributes better-for-you snacks specifically formulated to satisfy unhealthy nighttime cravings in a better, healthier, more sleep-friendly way. Future product line extensions may include formats such as NightFood cookies, NightFood ice cream, NightFood bites, and more. In addition, MJ Munchies, Inc. was recently formed as a new, wholly owned subsidiary, to exploit legally compliant opportunities in the CBD and marijuana edibles and related spaces. The Company intends to market some of these new products under the Half-Baked™ brand name. As the legal landscape around CBD and cannabis related products continue to change and evolve, MJ Munchies will continue to explore, identify, and hope to capitalize on opportunities clearly defined as legal.
INSYS Therapeutics, Inc . (NASDAQ: INSY)
Market Cap: $559.47M, current share price: $7.58
Insys Therapeutics, Inc., is a specialty pharmaceutical company, develops and commercializes supportive care products. The company markets SUBSYS, a sublingual fentanyl spray for breakthrough cancer pain in opioid-tolerant adult patients; and SYNDROS, an orally administered liquid formulation of dronabinol for the treatment of chemotherapy-induced nausea and vomiting, and anorexia associated with weight loss in patients with AIDS. It is also developing Cannabidiol Oral Solution, which has completed pediatric study for the treatment of pediatric epilepsy; has completed Phase II study to treat west syndrome; and is in Phase II study for the treatment of childhood absence epilepsy, as well as Buprenorphine Sublingual Spray that has completed Phase III study to treat acute pain. In addition, the company is developing Cannabidiol Oral Solution for the treatment of prader willi.
GW Pharmaceuticals Plc. (NASDAQ: GWPH)
Market Cap: $4.26B, current share price: $151.15
GW Pharmaceuticals plc, is a biopharmaceutical company, engages in discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant. The company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. Its lead product is Epidiolex, an oral medicine which is in Phase III clinical development for the treatment of efractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms. The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. In addition, it develops various product candidates, which are in Phase I and II clinical development for the treatment of glioma, neonatal hypoxic-ischemic encephalopathy, adult epilepsy, and schizophrenia.
Tilray, Inc. (NASDAQ: TLRY)
Market Cap: 2.73B, current share price: $29.77
Tilray, Inc. IPO’d on Thursday July, 19th, at around $20 per share. Shares then spiked at a high of just over $34 a share, before declining in recent sessions to end trading today at $25.36. Tilray, Inc. is a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor. On July 23rd the company announced the closing of its IPO, and full exercise of the underwriters’ option to purchase additional shares.
The Scotts Miracle-Gro Company (NYSE: SMG)
Market Cap: 4.51B, current share price: $81.56
The Scotts Miracle-Gro Company manufactures, markets, and sells consumer lawn and garden products. The company operates through three segments: U.S. Consumer, Hawthorne, and Other. It offers lawn care products, including lawn fertilizers, grass seed products, spreaders, other durable products, and outdoor cleaners, as well as lawn-related weed, pest, and disease control products. The company also provides gardening and landscape products, such as water soluble and continuous-release plant foods, potting mixes and garden soils, mulch and decorative groundcover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions. In addition, it offers hydroponic products that help users grow plants, flowers, and vegetables in an indoor or urban environment; and insect control products, rodent control products, and weed control products for home areas. The company offers its products under the Scotts, Turf Builder, EZ Seed, LiquaFeed, Water Smart, PatchMaster, GrubEx, EdgeGuard, Snap, Handy Green II, Scotts OxiCleanTM3, Miracle-Gro, Osmocote, Hyponex, Earthgro, SuperSoil, Ortho, Nature Scape, Miracle-Gro Organic Choice, Nature’s Care, Whitney Farms, EcoScraps, Gro-ables, General Hydroponics, Gavita, AeroGarden, Botanicare, Vermicrop, Agrolux, Can-Filters, Fafard, Ortho, Tomcat, Roundup, and Groundclear brand names.