You might like to think that marijuana is still a small business. Some farmer grows some marijuana, who sells it to another guy who processes and then sells it to the public. But it's slowly turning into a big business with giant corporations and everything that comes along with that. In fact, we already have our first multi-billion dollar merger.
Canadian marijuana companies Aurora Cannabis and CanniMed Therapeutics announced that they will combine their companies together, creating one entity worth $3 billion. Together, the two companies boast over 40,000 registered medical marijuana patients in Canada and five cultivation facilities, which will allow the new company to produce over 133,000 kilograms of marijuana each year.
While the two companies are mostly based in Canada, the implications of these two combining their resources will affect the entire industry around the world. Aurora is working to begin new operations in Germany, while CanniMed has begun working in Australia. The two companies are also in talks in Europe, Africa and Australia to begin exporting their products.
This is the second story involving major financial endeavors for cannabis companies in the past few weeks. Last month Constellation Brands, most known for producing Corona beer, purchased a 10 percent stake in Canopy Growth, Canada's highest valued cannabis company.
It's still possible that CanniMed will block the merger and prevent this from happening. But this story just proves that the marijuana industry is maturing, and that the typical practices of Big Business are slowly seeping into it. Whether that's good or bad will be seen in the coming years.
(h/t Business Insider)