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Terminated Cannabis Merger Latest Setback in Struggling Industry

August 14, 2023

Edward Deibert, M&A partner, was recently quoted in the Law360 article, “Failed $2B Pot Merger Highlights Need For Federal Reform.” The article discusses the termination of a $2 billion cannabis industry merger, which comes at a challenging time for the industry, where a lack of M&A activity and federal action has resulted in poor morale.

Despite facing excitement in 2021 and earlier, Deibert told Law360 that the legal cannabis market currently faces an oversupply because of varying state-level rules. Additionally, the cannabis sector as a whole has an overabundance of retailers and businesses. As a result of the increased amount of competition in the market, “there will be a lot of pressure to start selling and consolidating,” he said.

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