Emerald Holding acquires the leader in cannabis events and media
Emerald X (EXEX) – Get the report from Emerald Holding, Inc.a New York-based live events and business-to-business media company owned by Emerald Holding, has purchased MJBiz, one of the cannabis industry’s leading event producers and content platforms, for more than 120 million dollars in cash, plus potential payouts.
Two lectures for the price of one
As part of the deal, Emerald X will acquire MJBizCon, one of the largest marijuana gaming trade shows. The 11-year-old conference, to be held in Las Vegas from Nov. 15-18, attracts more than 35,000 attendees and 1,300 exhibitors from around the world, according to its website.
But that’s not the only conference Emerald X has purchased, as MJBiz owns The Emerald Conference, which is less industry-oriented. Instead, it’s more of a cannabis science event dedicated to combating “the black market paranoia and misinformation that has plagued this field for decades,” through the exchange of information related to the cultivation, production and quality assurance of cannabis products. The next Emerald Conference will take place from February 27 to March 1 in San Diego.
The purchase will also include leading industry publications MJBizDaily, MJBizScience, Hemp Industry Daily, and MJBizMagazine, which are among the top sources of trends and developments in the cannabis industry and have brought in $27 million in revenue. last year, according to a statement from the company.
Why did Emerald buy the Bud Conference?
Emerald’s largest shareholder is investment firm Onex Corp, according to Bloomberg. .
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The company hosts more than 150 events a year in industries ranging from construction to technology, including Outdoor Retailer, ASD Market Week and International Pizza Expo.
Emerald’s purchase of MJBiz is a sign that while marijuana is still federally illegal, its popularity continues to grow. Recreational cannabis is legal in 19 states, including New York since last year as well as Guam and the District of Columbia, and it has been decriminalized in 13 others. The medical use of cannabis has grown since, as you might expect, California made cannabis legal in 1996, and it’s now legal for medical use in 38 states plus DC.
Additionally, CBD, a legal marijuana extract that can produce a feeling of relaxation without the “high” feeling that comes from THC, has also grown by leaps and bounds over the years, as it is expected to hit $20 billion in sales. by 2024, an increase from $1.9 billion in 2018. Heck, CBD is now so mainstream that even Martha Stewart has her own line.
In short, marijuana and its related products are a booming industry that will likely only go mainstream, and Emerald is looking to expand after a tough year.
Emerald’s market value is estimated at $282 million by Bloomberg, despite having an initial public offering of $303 million in 2017. But the company’s shares have fallen 26% over the past year as the pandemic caused mass trade show cancellations, although has held 43 events since June.