in a $2.1 billion deal. as the biggest cannabis firms jockey to dominate the US market.
Cannabis advisory firm Viridian Capital Advisors says that we should expect the top five cannabis companies by market cap — Curaleaf, Green Thumb, Verano, Trulieve and Cresco— to look to acquire operators with big footprints in single states or multiple markets. In a Thursday note, Viridian analyst Jonathan DeCourcey said that the Trulieve-Harvest deal is important in large part because it represents"a plug and play opportunity for Trulieve with a primary focus on large and established markets."
While Trulieve has a big presence in Florida, Harvest's operations are focused heavily on the Southwest., according to data from Viridian. This means that Trulieve's biggest competitors, those in the top tier of US cannabis companies, are well capitalized to pursue a similar strategy. Viridian added that the 6th through 15th largest cannabis companies by market caps, or the"second tier" players, may also make notable acquisitions after raising big rounds of capital in 2020 and earlier this year. Companies in this group that are most likely to make deals include Ayr Wellness, Jushi Holdings, Planet 13 Holdings, and TerrAscend.An inside look at the multibillion-dollar global cannabis boom. Sign up for Insider Cannabis.