Though the mainstream CBD industry is still in its infancy, M&A activity is already picking up. In May, Edmonton, Alberta-based Aurora Cannabis Inc. acquired Reliva LLC, Natick, Mass. The deal combined Aurora’s Canadian recreational brands and Canadian and European medical market position with Reliva’s U.S.-leading hemp-derived CBD portfolio.

“The acquisition gives us access to first-hand experience in the most permissive and regulated cannabinoid market in the world (Canada),” says Miguel Martin, chief commercial officer at Aurora and former CEO of Reliva. “Compliance, manufacturing, labeling, research—[Aurora knows] how to do it.”

Lukas couldn’t comment directly on the Aurora deal but said such acquisitions generally make sense for Canadian companies as well because “the hemp-derived market is a path into the U.S. to generate immediate returns.”