Tweed Marijuana Inc. (TSXV:TWD) announced that it has closed an all-stock transaction to acquire Bedrocan Cannabis (TSXV:BED).
As quoted in the press release:
The transaction has united the two strongest brands in Canadian cannabis under one roof, and signals the Company’s intention to further solidify its position as the leading player in the industry.
Combined, Tweed and Bedrocan launch into priority of client generation, with more than 5,600 active registered customers. The Company’s priority is now to build on the unique strengths of each brand, with their distinct customer segments, to accelerate patient acquisition and the rate of market growth.
The combination of Tweed and Bedrocan creates new advantages for registered cannabis patients. Customers who choose either producer will have access to both product lines – as of September 1, 2015 for dried cannabis strains, and soon for cannabis oils as well. This enhances traditional horizontal integration by adding a broader range of product choices and services without switching producers, a benefit that will give consumers more flexibility and improve the customer experience.
Bruce Linton, chairman and CEO of Tweed, commented:
We have established the clear market leader, and are driving the evolution of the cannabis sector in Canada. “The acquisition of Bedrocan is the first step, and we intend to continue to take the initiative, growing our portfolio of brands, expanding clinical research on cannabis, adding new products and services, and introducing additional innovations for patients and consumers.