Two huge deals have rocked the cannabis industry over the last four months. Canopy Growth(NYSE:CGC) made headlines in August when major alcoholic-beverage maker Constellation Brands increased its stake in the company to 38% with a $4 billion investment. Last week, tobacco giant Altria announced that it was acquiring 45% of Cronos Group (NASDAQ:CRON)for $1.8 billion.
The big question on many investors’ minds now is: Who’s next…
1. CannTrust Holdings
CannTrust was another Canadian marijuana producer that Altria considered as a partner, according to Forbes contributor Sara Brittany Somerset. There are several reasons why other major companies outside of the cannabis industry could also have CannTrust on their short list of potential partners.
Unlike most of its peers, CannTrust is profitable. The company’s expansion efforts at its Niagara greenhouse facility should boost its annual production capacity to well over 100,000 kilograms (about 220,500 pounds). CannTrust is well-positioned in the Canadian recreational marijuana market, having secured supply agreements with nine of the country’s 13 provinces and territories.
CannTrust already has a major partner in the medical marijuana business — Apotex, Canada’s largest generic-drug maker. That relationship shouldn’t interfere with a potential deal with a beverage company or tobacco company more interested in recreational cannabis-based products, though. And with a market cap of around…
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