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Opinion: Why is marijuana M&A holding up better than capital raises?

Frank Colombo

Mergers and acquisitions in the marijuana industry are up slightly on a global basis so far this year, while cannabis companies have been raising less money from investors.

Typically, cannabis M&A and funding move in the same direction – but not this year.

What’s going on?

Here is a closer look at this apparent disconnect:

1. Global M&A is at record levels, and the U.S. is not far off the pace.

Viridian Capital Advisors has tracked 75 M&A transactions globally with a total value of $3.5 billion through the end of April 2022.

That’s up 3.5% from the same year-to-date period in 2021, the previous peak year since 2018.

M&A in the United States is somewhat weaker, down about 8% year-to-date, to $2.2 billion, versus a record $2.4 billion for the same period in 2021.

The U.S. figures will get a lift when major acquisitions – including Verano Holdings’

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