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- Mergers, Growth & A Tanzania Twist: Cannabis Industry Takes Off?
Mergers, Growth & A Tanzania Twist: Cannabis Industry Takes Off?
Merger mania sweeps the country, Harris warns about getting stoned, and goodbye Blumenauer... who will carry his legacy in Congress?
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Happy Friday, everyone! Nicolás Rodríguez and Patricio Liddle here, bringing you the latest in the Cannaverse before the weekend kicks off. We hope everyone stayed safe through Hurricane Milton.
Today we're diving into the big moves shaking up the industry—like the major mergers of RIV Capital with Cansortium and Canopy Growth's acquisition of Wana. We'll also pay tribute to Congressman Earl Blumenauer's inspiring 50-year legacy in cannabis advocacy as he steps down from Congress. Plus, we'll explore the shifting political landscape with Kamala Harris and Trump weighing in on cannabis legalization.
Last but not least, a big shout-out to Todd Harrison for his fantastic coverage at the Benzinga Cannabis Capital Conference in Chicago this week! Let’s dive in!
New York’s cannabis market is seeing a major consolidation as RIV Capital and Cansortium have received approval for their highly anticipated merger. This deal, expected to close by the end of 2024, will give the combined company control over 42 retail dispensaries and eight cultivation facilities, positioning them to cover roughly 25% of the U.S. population—around 83 million people. With operations in key states like New York, Florida, Pennsylvania, and Texas, this merger is a major play in the rapidly expanding U.S. cannabis market.
Meanwhile, Canopy USA, LLC, a subsidiary of Canopy Growth Corporation, has completed its acquisition of Wana, one of the top edibles brands. Senior analyst Pablo Zuanic highlights Canopy’s "brand-first" strategy, which focuses on expanding brands like Wana and Jetty by scaling product lines rather than investing heavily in cultivation. This approach sets Canopy apart from peers like Tilray and Aurora, allowing it to grow sustainably.
With Wana generating $150 million in retail sales across 19 states in 2023 and Acreage Holdings valued at $411 million, analyst Pablo Zuanic believes Canopy is well-positioned for further growth, particularly if federal regulatory changes occur. On the West Coast, Lowell Farms is also making moves, securing management agreements for two retail stores in Los Angeles.
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Congressman Earl Blumenauer is stepping down after 50 years of public service, leaving behind an unmatched legacy in cannabis advocacy. From witnessing Oregon's groundbreaking move to decriminalize cannabis in 1973 to co-founding the Congressional Cannabis Caucus, Blumenauer has been a relentless champion for sensible cannabis legislation.
His bipartisan efforts led to significant milestones like the SAFE Banking Act and the MORE Act, pushing federal cannabis policy forward. He's been instrumental in protecting states' rights and ensuring that federal funds aren't used to interfere with state medical cannabis laws.
As he transitions to his new role at Portland State University, we deeply value his tireless work and the doors he's opened for the industry. Blumenauer's vision and dedication have shaped policy and will undoubtedly inspire future generations to continue the fight for cannabis reform.
VP Kamala Harris says don’t get stoned before the Sphere, but it seems both 2024 candidates are finally ‘lighting up’ the cannabis debate. With Irwin Simon -Tilray’s CEO, betting the election will blaze a trail for legalization no matter who wins, we’re left wondering—who’s puffing for real, and who’s blowing smoke?
As Harris puts it, “People should not be going to jail for smoking weed,” while Simon claims, “Either candidate could pave the way for regulatory reforms.”
While the cannabis industry is gaining political traction, Minerco’s leadership took a different route—straight to scandal. CEO Julius Jenge, arrested at the airport while boarding a flight to Tanzania, now faces up to 20 years for his role in an $8 million pump-and-dump scheme. Minerco’s mushroom ambitions crashed hard, proving fraud doesn’t fly.
Thank you for reading! If you enjoy this newsletter and want to stay ahead in the cannabis world, share it with your friends and colleagues—spread the word! And if you're not already subscribed, what are you waiting for? Join us to keep up with the latest insights, big moves, and industry shifts. Let’s grow together! 🌱
Weekend Weed Reads:
Our Writers Today
Nicolás holds a B.A. in International Relations, an M.A. in International Affairs, and an M.Phil in Public Policy. He is a doctoral student in Public and Urban Policy at The New School in New York City. After working for the United Nations in 2014, Nico pivoted his research to studying the relationship between the cannabis industry and economic development.
Patricio is a development economist with extensive experience in IT, finance, and banking. He writes about the economic and social opportunities obscured by over fifty years of drug prohibition. Beyond his professional expertise, Patricio is a committed advocate for social change, passionately working to promote harm reduction and reform drug policies.
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