Three companies are making big moves this week, demonstrating that — despite a rocky start to legalization north of the border and plenty of uncertainty south of it — there’s still lots to be excited about for the future of cannabis.
1. The lean, mean MTL Cannabis machine
While some of Canada’s biggest cannabis companies are paying the price for building out far too much grow space, Quebec’s MTL Cannabis appears to be taking the opposite approach. After its success with its Sage ‘n’ Sour strain, the company announced it is acquiring Canada House Wellness Group, which will immediately double their cultivation footprint, allowing them to grow annual production from 13,000 kg to 30,000 kg.
“This approach ensures we produce great weed that the consumer wants and allows retailers to feel confident in the MTL products they carry,” they said in a statement.
2. Scotts comes through with Miracles
And the Hawthorne Collective, a subsidiary of ScottsMiracle-Gro, is investing $150 million in Toronto-based RIV Capital Inc., an acquisition and investment company focused on cannabis, which will allow them continue with their strategy to build an MSO.
“With ScottsMiracle-Gro’s strong track record, reputation, and brand awareness, we can build upon lessons learned in both the Canadian and U.S. cannabis markets, and leverage their insights to optimize our acquisition and investment strategy,” said Narbé Alexandrian, RIV’s President and CEO, in a statement.
3. Leafly SPACs it to ‘em
And cannabis commerce, news and reviews portal Leafly is going public via a SPAC merger with Merida Merger Corp., reports TechCrunch. Valued at $532 million, the deal is expected to raise $161.5 million. CEO Yoko Miyashita will stay on.
“We are looking forward to entering the next phase of our company’s journey — creating more personalized consumer experiences, driving more value to our retail partners, amplifying brands on our platform and further scaling our presence in local markets as legalization continues,” she said.