Mergers And Acquisitions In The Cannabis Retail Space

The end of the lottery process in Ontario and the opening-up of cannabis retail to the public at the beginning of 2020 has led to many more cannabis retail stores opening with hundreds still being processed and scheduled to open over the coming year.  This has contributed to increased mergers and acquisitions ("M&A") activity in the cannabis retail space in Ontario which is expected to be more active over the coming months given the current delays in the issuance of Retail Store Authorizations ("RSAs") by the Alcohol and Gaming Commission of Ontario (the "AGCO").  This uncertainty and delay has caused some would-be operators to reconsider their retail cannabis aspirations and canvass their options to monetize their interests and cut their losses by looking for potential third parties to take-over their leases and if in operation, purchase their businesses.