By Aaron Miller-
Two of the leading players in Canada’s booming cannabis sector have announced merger plans that will create the world’s largest weed company, as the industry hopes for further liberalisation in the U.S under Joe Biden.
Talks are apparently underway with members of the future Biden administration to pave the way for a nation wide legalisation in America, but is likely to face opposition and therefore has a long way to go. Legalising Marijuana in the U.S is expected to spread to the U,K and restrict illegal supply, but will be under strict regulations likely to be more for medical use.
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The UK has resisted previous calls for the legalisation of marijuana, but big players seeking an international growth of legal marijuana are hoping the establishment of a massive global company will open doors for wider international acceptance.
Tilray and Aphria announced an all-share deal giving the new entity a stock market value of C$4.8bn (£2.8bn).The two companies’ combined revenues over the past 12 months amounts to over £500m.
It is expected to create an entity with an equity value of about C$4.8 billion ($3.8 billion), Tilray and Aphria leaders. have confirmed. The combined group’s are making an annual sale of C$874 million
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A number of US states have legalised marijuana, maximising legal profit margins, but marijuana remains illegal under federal law, thereby obstructing banking arrangements and cross-border movement.
Many of those firms have struggled to make a profit and have seen their share prices fluctuate wildly amid volatile sentiment about the relatively young sector’s success and sustainability.
Tilray and Aphria said their merger, first reported by an industry consultant via the Twitter handle @BettingBruiser, would create £58m of annual cost savings within a year.
Marijuana is a Cannabis plant meant primarily for medical or recreational purposes, its main psychoactive component being tetrahydrocannabinol (THC). THC is one of the 483 known compounds in the plant, and it can be used by smoking, vaporizing, within food, or as an extract.
Cannabis has various mental and physical effects, including euphoria, altered states of mind and sense of time, but many of its recreational users will welcome legalisation in any form. However, access to marijuana under legalised conditions is expected to be much different to regular smokers will expect.
Coffe shops in the Netherlands sell cannabis legally for personal consumption, but growing the cannabis they sell is illegal and subject to penalties .
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