Marijuana legalization in the U.S. could be years away from becoming a reality. However, that isn't stopping Canadian cannabis businesses from staking out positions beforehand. They want to be ready to go when the market opens up, and that is why there has been an uptick on the mergers and acquisitions (M&A) front of late.

Last week, Valens (OTC:VLNCF) became the latest name to announce its entry into the U.S. market with the acquisition of Green Roads, a U.S. company that makes hemp-derived cannabidiol (CBD) products. Let's take a closer look at what it means for Valens, and for the industry in the U.S.

There are nearly 800 strains of cannabis available on the legal market, with more being cultivated all the time. On top of that, there are countless formulations of edibles, tinctures and other cannabis products.

Like the wine industry, cannabis is a complicated market for consumers. In the wine industry, sommeliers guide consumers into making choices based on region, vintage and other attributes. Cannabis is primed for a similar approach, but not nearly enough dispensaries are staffed with the sort of experts to provide it.

The inherent contradictions of American cannabis laws seem to appear in the news almost every week.

At the state level, for example, Virginia recently became the latest jurisdiction to allow adult cannabis use, effective this July 1. But just days later, a court upheld United States federal tax laws that treat state-licensed cannabis businesses as illegal drug traffickers.

The Ontario Cannabis Store (OCS) is giving some love to craft growers with the launch of a new designation aimed at helping raise the profile of offerings from small licensed producers.

Launching late last week, the new designation — as it stands, only for dried flower and pre-rolls — currently includes products from 20 licensed cannabis producers, according to Marijuana Business Daily.

The pathway to the U.S. cannabis market is being watched closely by Canadian companies eager to enter the frenzied space. But an already well-trodden path exists for those companies seeking an early advantage over their Canadian peers - CBD. 

As the U.S. cannabis market remains closed due to the drug still illegal federally, although more than half of the country's states have passed measures allowing its sale for either medical or recreational purposes, Canadian companies have begun to move in earnest to establish a U.S. presence but solely in the CBD space. 

Today is a big day for the cannabis industry as Tilray, Inc. (TLRY) shareholders are going to attend a special shareholder meeting to vote on previously announced mega-merger with Aphria, Inc. (APHA.TO) (APHA).

We expect Tilray shareholders to vote in favor of the merger and believe that the combined company will be the world’s largest cannabis company. Earlier this month, Tilray passed changes to make it easier for it to meet the requirements that are needed to reach quorum at the special meeting.

Statistics Canada released February retail sales for the country this morning, with cannabis sales growth decreasing sequentially. Sales of C$263 fell 5.9% from January (three fewer days), which had declined  6.0% from December levels, and rose 74.4% from a year ago. Note that the month was a day shorter than a year ago. This was the slowest year-over-year growth since adult-use sales commenced.

For the second month in a row, national cannabis sales continued to decline after peaking in December 2020.

The latest figures from Statistics Canada show that sales remain up year-over-year, however, with Canadians purchasing just under $263 million worth of legal weed in February.

The sales represent a 74 per cent increase, year-over-year.