There was a big win for Saskatchewan investors last week when Saskatoon-based cannabis supplier was taken over in a $1.1 billion deal.
CanniMed was the nation’s leading supplier of medicinal marijuana and, with the legalization of recreational use, the industry has been on a rocket ride. So that made an existing player an attractive asset.
This has been a quiet story. The company’s been around for a couple decades and went about its business, slowly growing its market penetration and client base with expansion into the US and Europe.
It relied heavily on local investors, private players as well as the funds such as Golden Opportunities and SaskWorks. This was a home run for them so, with the takeover, hundreds of millions of fresh capital is going to flow into the province.
To understand why this has turned into big business, a report last week from StatsCan helps with context.
It shows that roughly 5 million Canadians use marijuana and they spend an average of $1,200 per person making it a $6 billion industry. Only one-in-ten is a medicinal marijuana user.