The multi-year cannabis sector bear market is starting to give way to a calculated wave of industry consolidation. Behind the urge to merge is a significant shift in U.S. federal regulatory policy, encouraging better-capitalized operators to secure global supply chains before tax relief drives widespread multiple expansion.
At the center of this structural shift is a hostile bidding war. Multi-state operators are aggressively targeting distressed assets, looking to acquire international infrastructure and clean balance sheets at a discount to replacement costs.
