CANADA: Two of Canada’s largest medical marijuana firms are combining in a deal that will create a dominant domestic producer and reshape the fledgling industry.
Tweed Marijuana Inc. and Bedrocan Cannabis Corp. have agreed to merge, the companies said. It is an all-stock acquisition by Tweed that values Bedrocan at about $58 million, or 84 cents a share, compared to its closing price of 66 cents on Tuesday.
Canada’s medical marijuana space since the sector got off the ground last year, and it is a game-changer. The combined company will be the industry’s undisputed leader, with more than 25 per cent of all the registered patients and production capacity across the country. It will have three production facilities in Ontario, and a total licensed sales capacity roughly 6,000 kilograms of medical pot per year. The combined market cap of the two firms is triple the size of its closest rivals.