Increasing cannabis demand has been forcing cannabis companies to expand their investments in growth opportunities. Surveys and analysts estimates are showing robust sales growth for the US cannabis industry. The latest report from ArcView Group predicts the US cannabis industry to generate $40 billion by the year 2021.
The legalization of medical and recreational cannabis in key US markets are likely to generate significant sales growth for cannabis companies. These markets include Massachusetts, Oregon, Washington State, California, Nevada, and Colorado.
Organigram Holdings (OTCQB:OGRMF) is among the companies that are investing significantly in growth opportunities to capitalize on increasing demand.
Along with the investments in domestic markets, it also started investing in international markets. It recently announced to acquire 25% stake of Alpha-Cannabis in Germany for €1,625,000 in cash and €875,000 worth of its shares.
Greg Engel, CEO, Organigram said. "As we expand into international market development and technology acquisition, we are pleased to announce our proposed investment in Alpha-Cannabis Germany, the first of what we anticipate will be several international business development announcements."
CannaRoyalty Corp (OTCQF:CNNRF) shares are moving higher despite the broader market selloff. Its sales rose to $3 million in the latest quarter, higher from $0.6 million in the past year period.
Traders are showing confidence in its investment strategies and growth plans. It closed the number of acquisitions to expand its market share in key U.S. markets, including California. It recently closed River Distribution acquisition, and it also acquired Alta Supply Inc.
Aphria Inc (OTCQB:APHQF) closed two important strategic acquisition in the latest quarter. These acquisitions include Broken Coast Cannabis Ltd and Nuuvera Ltd. It is also investing sharply for the expansion of its existing facilities to increase its production potential.
Vic Neufeld, CEO of Aphria said, "Looking ahead, our focus remains on exploring strategic opportunities and partnerships globally while continuing our extensive preparations for the coming legalization of the adult-use market in Canada. All told, Aphria continues to solidify its standing as a market leader in Canada and as a leading player on the international stage."
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