The cannabis market flourished this past June & July with acquisitions, financings, and partnerships by numerous U.S. & Canadian marijuana companies but all that activity had no positive influence on the performance of most of the stocks involved. In fact, the price of 15 of the 18 stocks involved floundered. This article provides a recap of those corporate activities and the performance of the "pot" stocks involved.

Mergers & Acquisitions

1. Curaleaf Holdings Inc. (OTC: CURLF; CSE: CURA) acquired GR Companies, Inc. (Grassroots), the largest private integrated multi-state cannabis operator in the U.S., for US$875 million to expand its presence from 12 to 19 U.S. states and to solidify its position as the world's largest cannabis company by revenue and the largest in the U.S. across key operating metrics.
2. Supreme Cannabis Company Inc. (OTC: SPRWF; TSX: FIRE) acquired privately held Canadian-licensed producer Truverra Inc., for US$20 million in stock and Blissco Cannabis Corp. (CSE: BLIS; OTCQB: HSTRF), a premium wellness company, for US$48 million in an all-stock deal, which will complement its growing brand portfolio and cement its position as Canada’s only premium cannabis company producing at scale.
3. Green Growth Brands Inc. (OTC: GGBXF; CSE: GGB), acquired cannabis extract company, MXY Holdings LLC (commonly known as Moxie), for US$310 million to enable it to provide consumers CBD and THC products and distribution that runs from mainstream retail to cannabis dispensaries. In addition, GGB acquired 100% of Spring Oaks Greenhouses, Inc. which holds a medical marijuana dispensary license to operate up to 40 dispensaries in the state of Florida, for US$55 million.
4. Canopy Growth Corp. (NYSE: CGC; TSX: WEED) acquired KeyLeaf Life Sciences, a large-scale Canadian extraction company with extraction-related facility in the U.S., to support its U.S. CBD expansion.
5. Jushi Holdings Inc. (OTC: JSHHF; NEO: JUSH), a U.S. cannabis operator, acquired all of the membership interest of medical cannabis permit holders in Franklin Bioscience-Pen LLC from the Pennsylvania Department of Health, for US$63 million which allows for the opening of 12 medical marijuana dispensaries in Pennsylvania thereby cementing it as a leader in the state. In addition, Jushi acquired the intellectual property, including cannabis brands and trademarks, from The Clinic Consulting Services TM, for US$10 million.
6. Halo Labs Inc. (OTC: AGEEF), a Toronto-based U.S. cannabis extraction company, increased its position in Bophelo Bioscience & Wellness Ltd. of Lesotho, Africa, the first African country to grant medical marijuana licenses for cultivation and patient use, for US$18.9 million, to strengthen its position in Africa.
7. MedMen Enterprises Inc. (OTC: MMNFF; CSE: MMEN), a U.S. cannabis operator, acquired 100% of MattnJeremy Inc. LLC, a cannabis retailer in California operating under the name One Love Beach Club, for US$13 million. to enhance its industry-leading California footprint.
8. PharmaCielo Ltd. (OTC: PHCEF; TSXV: PCLO), a Canadian cannabis oil company, acquired Cresco Pharma Ltd. (ASX:CPH), which has sales in 13 countries, for A$122 million, to complement its own networks in South America, Mexico, and Italy.
9. Green Thumbs Industries Inc. (OTC: GTBIF; CSE: GTII), a U.S. a cannabis consumer packaged goods company and retailer, acquired Integral Associates for US$290 which will enable GTII to establish scale distribution of its products and establish a retail footprint in the Nevada market and in California.

Financing

1. Neptune Wellness Solutions Inc. (NASDAQ: NEPT; TSX: NEPT), a Quebec-based U.S. cannabis extraction company, closed a US$41M placement to facilitate their acquisition of SugarLeaf Labs LLC.
2. THC BioMed Intl Ltd. (OTC: THCBF; CSE: THC), a Canadian cannabis producer, announced the closing of a US$200M private debt commitment to be used for expansion of facilities.
3. Delta 9 Cannabis Inc. (OTC: VRNDF; TSXV: NINE), a Canadian cannabis producer, announced the closing of a US$11.8M public offering of debenture units to be used towards expansion of production capacity.
4. MedMen Enterprises Inc. (OTC: MMNFF; CSE: MMEN), a U.S. cannabis retailer, announced an additional US$30M funding to their initial US$250M from Gotham Green Partners which is planned to be used towards opening new retail locations and expanding its brand.
5. Flower One Holdings Inc. (OTC: FLOOF; CSE: FONE), a Toronto-based U.S. cannabis operator known as Nevada’s largest producer, announced a US$20M financing at LIBOR plus 8%.
6. Aleafia Health Inc. (OTC: ALEAF; TSX: ALEF), a Canadian cannabis producer, announced the completion of US$40M in convertible note financing.
7. Surterra Wellness (Private), a U.S. cannabis oil and vaporizer company, announced US$100M in funding to accelerate growth in U.S. and international cannabis operations.
8. Fire & Flower Holdings Corp. (OTC: FFLWF; TSXV: FAF), a Canadian cannabis retailer, announced a US$27M in financing to use towards retail store build-outs.
9. The Flowr Corp. (OTC: FLWPFTSXV: FLWPF), a Canadian cannabis producer, announced US$50M in funding to be used for development of facilities in Kelowna. 

Partnerships

1. Green Growth Brands Inc. (OTC: GGBXF; CSE: GGB), a Toronto-based, U.S. cannabis producer, announced a partnership and purchase order with American Eagle Outfitters for sale of hemp-derived CBD products in almost 500 stores and the expansion of their deal with Abercrombie & Fitch to expand their CBD products to 160 stores from 10 trial stores.
2. iAnthus Capital Holdings Inc. (OTC: ITHUF; CSE: IAN), a U.S. cannabis operator, announced a partnership with Dillard’s Department Store to make products available throughout Dillard’s 265 department stores in 29 states.
3. CannTrust Holdings (NYSE: CTST; TSX: TRST), a Canadian cannabis producer, announced a joint venture with Elk Grove Farming Company, a U.S. farming company, that will provide access to 3000 acres of land for hemp production.
4. Sunterra Wellness Partners (Private), a health and wellness company with vertical operations in Florida, Texas, Nevada, and Massachusetts, announced a partnership with Intrexon Corporation for US$100M that will be used to advance Sunterra’s production capacity. 

What is driving this activity?

Well, cannabis companies:

• are betting on U.S. legalization soon and want to lock-down access to the key U.S. market once cannabis becomes legal under U.S. federal law,
• are looking for ways to reduce costs through economies of scale, and
• want to be vertically integrated and horizontally diversified across all segments in the value chain.

Conclusion

One would think that the above transactions would have resulted in positive sentiment and caused the stocks involved to appreciate but that was, simply, not the case. Of the 18 companies mentioned only 3 - Neptune Wellness Solutions Inc., Curaleaf Holdings Inc. and Fire & Flower Holdings Corp. - saw increases in their stock prices during the month of July (by +32.4%; +11.5% and +15.6%, respectively), while the average change in the stock prices of the other 15 companies declined by 21.6%. Who would have thought that would be the outcome?