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= $$$ Global M&A Activity on the

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mojo joyo   Friday, 04/09/21 10:35:40 AM
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= $$$ Global M&A Activity on the Rise Again in the Cannabis Sector
- FN Media Group Presents USA News Group News Commentary

NEWS PROVIDED BY

USA News Group
Apr 09, 2021, 09:00 ET

VANCOUVER, BC, April 9, 2021 /PRNewswire/ -- USA News Group -With a new administration in place, Senate Majority Leader Chuck Schumer has expressed that his branch of government will "move forward" on marijuana legalization, whether the President agrees or not. In advance of this, larger multistate operators (MSOs) and multinational cannabis corporations are raising money once again for a strategic advance towards increased M&A activity. The market is already bracing for the much anticipated merger of Aphria Inc. (NASDAQ:APHA) (TSX:APHA) and Tilray, Inc. (NASDAQ:TLRY) to become the world's largest global cannabis company by sales. Meanwhile, Sundial Growers (NASDAQ:SNDL) is gaining attention for being in a "transition phase" due to M&A potential, and IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) recently made headlines with its announced acquisition of MYM Nutraceuticals (OTCQB:MYMMF) (CSE:MYM).

Key to IMCC's latest deal was the addition of MYM's wholly-owned subsidiary Highland Growth, based out of Nova Scotia, Canada. According to internal company estimates, Highland Grow is expected to generate net revenue of C$29 million and C$38 million and gross margins of 34% to 36% in 2021 and 2022, respectively.

The addition of Highland Growth's net revenue provides a significant boost over IMCC's last reported financials during the 3 months ended September 30, 202, which posted a net income of C$738,000 and a 9-month consolidated revenue of C$11 million. For a more detailed look at IMCC in the leadup to the deal, an in-dept report has been published here.

"Acquiring MYM is consistent with IMC's focus on premium and super premium segments of the cannabis market for consumers and patients in all markets," said Oren Shuster, CEO, IMC. "With coast-to-coast distribution, including a strong leadership position in Eastern Canada, Highland Grow will further enhance our distribution capabilities and fast-track our entrance into new markets."

Prior to the deal, MYM had successfully garnered distribution deals in all provinces and territories of Canada, excluding Quebec where the main operations for its other cultivation subsidiary SublimeCulture resides. Back in February, MYM announced it had entered the lucrative Ontario market, and had secured an increased loan facility to support the company's growth ambitions.

"Entering the Ontario market is another key milestone for our Company," said Michael Wiener upon the Ontario announcement. "We've come a long way at MYM, and we are building incredible momentum. With the additional funds from our senior lender, we are well positioned to continue to build upon and accelerate our growth."

As per the deal, MYM Nutraceuticals (OTCQB:MYMMF) (CSE:MYM) shareholders are set to receive 0.022 shares of IM Cannabis Corp. (NASDAQ:IMCC) (CSE:IMCC) for each of their MYM shares, representing a price of C$0.195 based on respective closing prices on March 31, 2021. Further details on IMCC's value ahead of the deal can be found in a recently published research report.

In a much larger deal also involving the province of Ontario, Leaminton, Ontario-based Aphria Inc. (NASDAQ:APHA) (TSX:APHA) and Nanaimo, BC-based Tilray, Inc. (NASDAQ:TLRY) are expected to finalize their mega-merger in the coming months.

Industry analysts are already picking apart the details of the merger, which is expected to result in the world's largest cannabis company by sales. Tilray is set to hold a shareholder meeting on April 14 to vote on the proposed merger.

According to the recent proxy filing on March 12 by Tilray (page 1), Aphria shareholders will end up owning 62.1% of the combined company after receiving 0.8381 shares of TLRY stock for every APHA stock they own. However since there are more APHA shares outstanding, the total amount of shares TLRY shares given to APHA owners will be larger than by 63% (62%/38%).

Both Aphria's and Tilray's boards have unanimously determined that the arrangement is in the best interests of their respective shareholders.

As the M&A activity ramps up, eyes have turned towards Sundial Growers (NASDAQ:SNDL) which as of mid-March had reported its unrestricted cash reserves to be C$610 million, with an additional +C$110 million raised from a warrant exchange shortly afterward.

Now the market is poised to see what Sundial does next, as there are plenty of companies that the popular cannabis firm could purchase outright at this very moment, including what some analysts say could even be IM Cannabis (NASDAQ:IMCC).

Sundial also recently announced on March 18, 2021 that it would issue an additional $800 million in SNDL stock. Having recently beaten the estimates of analysts for Q4 2020 sales,

According to Cantor Fitzgerald analyst Pablo Zuanic, Sundial "is in a transition phase", citing ongoing cost cutting efforts and a "regearing" of its cultivation facilities.

"Most importantly, the company now sits on C$700Mn of cash and will look to M&A both in the domestic and elsewhere," said Zuanic.

Currently there is speculation that when the company lifted its cash position at the end of February it now remains ripe for an M&A play.

For More Information, please visit: http://rottentomatostocks.com/2021/04/06/imccs-high-valuation-cant-fool-cannabis-investors/

Article Source:

USA News Group
http://USAnewsgroup.com
info@usanewsgroup.com

DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. ("MIQ"). MIQ has previously been paid a fee for MYM Nutraceuticals, Inc. advertising and digital media from the company directly but is not currently engaged by the company. There may be 3rd parties who may have shares of MYM Nutraceuticals, Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of MYM Nutraceuticals, Inc. which were purchased as a part of a private placement. Let this disclaimer serve as notice that all material disseminated by MIQ have not been reviewed or approved by the above mentioned company; we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

Media Contact Information:
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Media Contact e-mail:
editor@financialnewsmedia.com
U.S. Phone: +1(954)345-0611

SOURCE USA News Group


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