Canaccord Genuity Group Inc (TSE:CF) Analyst Matt Bottomley on Cannabis M&A Activity

Canaccord Genuity Group Inc (TSE:CF) Analyst Matt Bottomley on Cannabis M&A Activity

Canaccord Genuity Group Inc (TSE:CF) (OTCMKTS:CCORF) (FRA:C6U) Analyst Matt Bottomley shares his thoughts on recent M&A activity in the cannabis space. Bottomley breaks down HEXO Corp’s (TSE:HEXO) (NYSE:HEXO) (FRA:74H) recent acquisition of Newstrike Brands Ltd (CVE:HIP) (OTCMKTS:NWKRF) (FRA:0N8). He emphasizes that the deal provides HEXO with indoor cultivation, which is necessary to export to Europe, but provided no premium to Newstrike. This represents a significant issue for Tier 2 names, who might have to take smaller deals to grow with bigger names. Bottomley thinks MSOs are the best play for 2019 and believes that while Canadian LPs have greater international optionality, the global industry is a longer term play with more risk. Bottomley is not surprised Nelson Peltz’s deal with Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) (FRA:21P) sent the company’s stock soaring. Bottomley sees Peltz’s value as a strategic investor once the US market opens to international players.

************************

Check out our website:

Home

************************

SUBSCRIBE to our YouTube:
http://bit.ly/MidasLetterYoutube

SUBSCRIBE to our 2nd YouTube Channel – Midas Letter Clips:
https://bit.ly/2rtQzgy

SUBSCRIBE to our Newsletter:
http://bit.ly/MidasLetterNewsletter

Download Our Podcast on iTunes:
http://bit.ly/MidasLetterPodcast

************************

Follow Us on Twitter:
http://bit.ly/MidasLetterTwitter

Like Us on Instagram:
http://bit.ly/MidasLetterInsta

Like Us on Facebook:
http://bit.ly/MidasLetterFacebook

************************

#WeedStocks
#MidasLetter
Canaccord Genuity Group Inc (TSE:CF) Analyst Matt Bottomley on Cannabis M&A Activity