A blockbuster cannabis deal goes bust and more could fall apart
San Francisco (CNN Business)Public cannabis companies are having a bear of a time.
Stock prices are plunging, lofty valuations are deflating, regulatory landscapes remain in flux, and now deals are coming off the table. MedMen Enterprises (MMNFF)’ bid to become the largest US cannabis company bit the dust this week when its planned acquisition of PharmaCann — once valued at $682 million — was mutually scrapped.
HIGHLIGHTS
- Public cannabis companies are facing a capital crunch as investors are recognizing that some firms were vastly overvalued.
- The cannabis industry is nearing a moment where the “cream is going to rise to the top” and cash-strong companies will be able to buy up assets at a discount.
- Whether it’s large deals falling apart or smaller deals falling apart, I think there’s going to be more of this.
