Canadian CANNAINVESTOR Magazine November 2017 - Page 164




My first case study back in the spring of 2016 was on the Canopy Growth Corporation (TSX:WEED; OTC:TWMJF). I have revisited Canopy Growth several times in both the US and Canadian editions since and was among the first to explain in detail the arbitrage opportunity that existed by owning shares in Mettrum Inc rather than shares of Canopy Growth during the M&A.

From that onset, I have described the industry as a vibrant ecosystem that is continuously being transformed and that the consolidation curve could not be avoided. Since that time we have seen a significant amount of M&A and partnering activity. In my first article in the spring of 2016 I asked “does anyone not think that the giants of Alcohol, Pharmaceutical, and Tobacco are not watching …?” Because it is an obvious part of the consolidation curve for this industry I would be wary of anyone attempting to trying to say that they were the first to predict this since doing so is basically the equivalent of predicting that the sun will rise and set each day. I would however tend to at least be skeptical of any source that not once stated that day would come. And here we are as that day has come.




By Louis Kyron