Cross-Border Cannabis Deals Getting Craftier
The border between Canada and the United States is not as clear-cut for cannabis companies.
Canada’s legalization of marijuana in 2018 has created a new generation of startups north of the border and investors are flooding with the hope that they will follow the path Canadian companies did by getting an early start on U.S competitors before America repealed prohibition all those years ago.
Now that so many US states have legalized recreational cannabis use, it has become clear who will dominate this new market: Americans! And some Canadians cannot even sell or ship products across borders due to legal restrictions on exporting outside North America – at least not yet. But there is hope on the horizon thanks to a string of recently signed agreements between certain groups.
Tilray Inc.’s purchase of MedMen Enterprises Inc.’s debt last week is the latest example in a recent trend that could help Canadian companies buy U.S.-based targets if legalization occurs – Tilray’s first such creative cross-border deal, Canopy Growth Corp.’s option to buy Acreage Holdings gives it access to Atlanta’s SweetWater Brewing Company and Manitoba Harvest; Aphria merger lets them make THC drinks or distribute cannabis in Southeast
Canadian retail company Fire & Flower has made a massive cross-border deal by opening up a dispensary in Palm Springs, California. The store is licensed through American Acres, which changed its name to the much more appropriate sounding “Fire and Flower U.S Holdings.” This agreement will also allow them to open other stores throughout Arizona, Nevada, and other areas of California, as well!
Scotts Miracle-Gro, the gardening company that has made a fortune selling cultivation equipment to cannabis growers in Los Angeles and Seattle, just invested $150 million into Toronto’s RIV Capital. The investment gives Scotts access to “a larger marketplace.”
Scotts Miracle-Gro is known as much for its fertilizers and other gardening supplies as it is for making loads of cash off growing sales from farm tools used by marijuana cultivators in LA and Seattle. This month, they’ve gone all out on investing 150 million dollars with Toronto’s RIV Capital, which provides venture capital financing to cannabis industry entrepreneurs. Scotts has also set up its own subsidiary called Scott Labs which will focus solely on weed research and development if/when legal restrictions are lifted.
Simultaneously, Flora Growth has also been a major player in the American market for some time now, and with anticipated federal legalization of marijuana looming on the horizon, the Columbia-based operation has already set its sights on capturing at least part of this lucrative American market.
Flora Growth just recently purchased a vape pen maker that will give them access to both sides of legal trade; allowing it to profit from production as well as retail sales once it becomes fully legalized here in America.