These 7 cannabis companies are ripe acquisition targets in 2022 - Read of Green
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These 7 cannabis companies are ripe acquisition targets in 2022



Source: Marijuana Moment

  • The Viridian analyst Jonathan DeCourcey says more cannabis M&A deals are to come in 2022.
  • DeCourcey says low stock prices could fuel this trend.
  • He listed seven companies that could be ripe acquisition targets.

Get ready for a slew of cannabis mergers and acquisitions.

That’s according to Jonathan DeCourcey, an analyst at the cannabis advisory firm Viridian Capital Advisors, who wrote in a Wednesday note that he expected M&A deals in the industry to provide positive momentum over the next year despite slow legislative changes to legalization from the US federal government.

DeCourcey said that deals had ticked up in cannabis in 2021 and that companies’ low stock prices could “motivate both buyers and sellers” to enter such agreements.

DeCourcey said that because stocks across the cannabis industry had a difficult year, and because of concerns about slowing growth, buyers would be motivated to acquire companies that add to their bottom lines and “provide meaningful growth.”

He added that he expected more deals between public companies soon, like Ayr Wellness’ acquisition of Liberty Health and Trulieve’s deal with Harvest Health & Recreation.

DeCourcey has been bullish on M&A deals throughout 2021. In a note earlier this year, DeCourcey emphasized that the top tier of US cannabis companies had plenty of cash to pursue big M&A deals, like Trulieve’s $2.1 billion deal with Harvest.

In September, he said the recent pullback in US cannabis stocks created a prime opportunity for large cannabis firms to snap up smaller companies.

DeCourcey said all but the largest cannabis giants are in play to be acquired next year.

He added that finding takeout candidates could provide investors “immediate returns at a time when again we expect gains to be modest (or non-existent) for the broader market.”

While you may not have heard of these companies, they’re ripe targets for the kinds of M&A deals expected in 2022, according to DeCourcey.

The cannabis companies DeCourcey identified in the note as likely targets are:

  • 4Front Ventures (FFNT)
  • Cansortium (TIUM.U)
  • Goodness Growth Holdings (GDNS)
  • Harborside (HBOR)
  • Lowell Farms (LOWL)
  • Planet 13 (PLTH)
  • Schwazze (SHWZ)


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