Last week, news came out that Canopy Growth might be acquiring Acerage Holdings for $3.4B - a big number when you consider that the entire global industry is worth about $18B. But this landmark announcement has some caveats. Here’s our breakdown of the deal:
Canopy Alumni, Mason Levy and Rodolfo Ramirez, sold their company, WeGrow, to VividGro. Levy began working on the WeGrow in July 2015, with the goal of creating an educational platform for home growers. After realizing the popularity and effectiveness of cannabis as medicine, Levy began wondering why more patients weren’t growing their own medicine - afterall, cannabis grows naturally on every continent but Antarctica. What he found was a knowledge barrier. At the time, the only real educational resources on growing were large, expensive and technical books and internet resources which were unreliable and living in the dark ages. Always interested in how to engage people through consumer technology, Levy incorporated in December 2015 and began recruiting like-minded individuals to take part in building the WeGrow platform with the goal of eliminating the knowledge barrier and empowering consumers.
New York is expanding it's medical marijuana program with a couple of important changes. First, they are allowing nurse practioners to recommend cannabis. Second, they are allowing home delivery.
Here's a great write-up by the New York Times on the underlying economics and social impact of the $1 billion acquisiiton of Dollar Shave Club by Unilever. "$1 Billion for Dollar Shave Club: Why Every Company Should Worry" by Steven Davidoff Solomon.