• February 26, 2017

Cannabis Industry Deals Show Aggregation And Development Of Non-Recreational Brands: ‘It’s A More Synergistic Approach’

FIRST-HARVEST-CORP-6

Cannabis Industry Deals Show Aggregation And Development Of Non-Recreational Brands: ‘It’s A More Synergistic Approach’

FIRST-HARVEST-CORP-6

Last week, ended February 10, the cannabis industry saw the highest amount of investment and M&A activity announcements year-to-date, lending support to the hypothesis of increasing capital markets support in the cannabis industry.

The period witnessed a total of 30 announcements, including 14 capital raises, 11 M&A transactions and two stock listings, among others, Viridian Capital Advisors’ weekly report revealed.

To provide our readers with a better look at what’s been going on in the marijuana space, Benzinga reached out to Viridian analyst Harrison Phillips, who walked us through the most interesting transactions.

First Harvest Corp (OTC: HVST), acquired Cannavoices, Inc., a developer of cannabis-focused mobile games and social media platforms.

“A trend we’ve seen developing slowly but steadily [is one] where new channels are being developed to reach cannabis consumers, primarily due to limits in advertising. There is so much regulation in the space that, in such an entrepreneurial environment where there are really no incumbent leaders, people are trying to be creative and figuring out ways to reach the cannabis consumer, both as an undeserved demographic and, just one that has still got that taboo around it, [leading] to larger players not necessarily getting involved yet.”

“Basically, they are trying to figure out ways to reach the consumer without direct TV advertising and stuff like that.” [Source.]

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