New England Treatment Access, one of the state’s early medical marijuana operators and the first to sell recreational pot in Massachusetts, has agreed to be acquired by a Georgia marijuana firm.
Atlanta-based Surterra Wellness said Monday that its agreement to purchase NETA in a cash and stock transaction “is one of the largest acquisitions to date in the US cannabis industry,” but declined to disclose the price.
The deal, which is subject to approval by the state Cannabis Control Commission, comes amid a wave of consolidation in the Massachusetts cannabis industry. With national legalization already a reality in Canada, and further liberalization of marijuana laws expected in the United States, investors believe scale will be the key to profits in an increasingly commoditized pot business.
“If, in a six-month period, there’s some sort of federal change, and you haven’t established that interstate capacity, you’re going to be at a significant disadvantage,” Kevin Fisher, NETA’s cofounder, said in an interview. “NETA is very strong financially, and there was no pressing need to sell, but the company could have become less competitive in the long run without access to scale.” [Read more at The Boston Globe]