Top cannabis acquisition targets after TerrAscend-Gage deal: Viridian

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The pullback in cannabis stocks creates a prime opportunity for companies to scoop up smaller players. A top Wall Street analyst names 7 prime targets.

Jason Wild, TerrAscend's executive chairman and the president of JW Asset Management, a cannabis-focused investment fund, said in an interview that he expects to announce at least one more deal before the end of the year.

Jon Decourcey, an analyst at Viridian, outlined seven potential targets in a Wednesday note. He said that smaller cannabis companies with operations in attractive markets like California are at the top of the list. These companies include Lowell Farms, Harborside, Next Green Wave, Vibe Growth Corp., and Glasshouse Group. Glasshouse went public through aDecourcey said smaller MSOs, or companies that produce or sell cannabis in multiple states, like Goodness Growth Holdings and Cansortium could become attractive targets as well.

He said that bigger US cannabis companies like Curaleaf and Green Thumb Industries, along with their Canadian counterparts like Tilray and Canopy Growth, will need to pursue deals to continue to excite investors and keep up with their competitors — and they have cash on their balance sheet to do so.Subscribe to push notifications

 

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