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Mergers & Acquisitions,
Administrative/Regulatory

Jan. 28, 2019

Mergers and acquisitions in the cannabis industry

Despite these challenges, investors are more than willing to engage in pre-licensing deals as a way to get in at the ground floor in California — the world’s largest cannabis market.

Tiffany Carrari

Margolin & Lawrence

Before joining the team of Margolin & Lawrence, Tiffanywas an associate attorney in the transactional departments at Kirk & Simas and Andre, Morris & Buttery and gained valuable experience representing Central Coast clients in all aspects of trademark licensing, business and real estate. She earned her JD from University of Texas at Austin in 2013 and is licensed to practice in the states of California and Texas.

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Mergers and acquisitions in the cannabis industry
Aurora became one of the first cannabis companies listed on a stock exchange after completing a reverse takeover to join the Canadian Securities Exchange in 2014 and started trading on the Toronto Stock Exchange in 2017 before having its shares listed on the New York Stock Exchange in October 2018. (Shutterstock)

The regulatory challenges of dealing with a federally controlled substance are not preventing cannabis businesses from participating in mergers and acquisitions.

Canada's Aurora Cannabis became the largest producer of cannabis after its acquisitions of CanniMed and MedReleaf in 2018. Aurora is also one of many companies expanding its reach by funding consolidation and infrastructure development projects through publicly traded securi...

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