Emerald X (EEX) – Get the Emerald Holding, Inc. Report, a New York-based business-to-business live events and media company owned by Emerald Holding, has recruited MJBiz, one of the leading event producers and content platforms in the cannabis industry, for more than $ 120 million in cash plus potential income bought from.
Two conferences for the price of one
As part of the deal, Emerald X will take over MJBizCon, one of the largest trade shows in the marijuana game. The 11-year-old conference, which will take place in Las Vegas November 15-18, draws more than 35,000 attendees and 1,300 exhibitors from around the world, according to its website.
But that’s not the only conference that Emerald X has bought, as MJBiz owns the less industry-focused Emerald Conference. Instead, it is more of a cannabis science event dedicated to combating “the black market paranoia and misinformation that has raged in this area for the last few decades” by exchanging information on the cultivation, production and quality assurance of cannabis products . The next Emerald Conference will take place in San Diego from February 27th to March 1st.
The purchase also includes prominent industry publications MJBizDaily, MJBizScience, Hemp Industry Daily and MJBizMagazine, which are among the leading sources of trends and developments in the cannabis industry and grossed $ 27 million in sales last year, according to a statement by the company.
Why did Emerald buy the Bud Conference?
Emerald’s largest shareholder is Toronto-based investment firm Onex Corp., according to Bloomberg, and the transaction is based on possible future payments that are contingent on MJBiz’s performance through 2022, which could be “between $ 30 million and $ 50 million” in 2023 .
The company hosts more than 150 events annually across industries from construction to technology, including Outdoor Retailer, ASD Market Week, and the International Pizza Expo.
Emerald’s purchase of MJBiz is a sign that while marijuana is still illegal at the federal level, its popularity continues to boom. Recreational cannabis is legal in 19 states, including New York, Guam and the District of Columbia since last year, and has been decriminalized in 13 more. Medical use of cannabis has increased since California legalized cannabis in 1996, and it is now legal for medical use in 38 states as well as DC
Additionally, CBD, a legal marijuana extract that can induce a sense of relaxation without the “high” feeling emanating from THC, has also seen a boom over the years, with sales expected to reach $ 20 billion by 2024 will. an increase of $ 1.9 billion in 2018. Heck, CBD is so common now that even Martha Stewart has her own line.
In short, marijuana and its related products are a booming industry that is likely only to become more mainstream, and Emerald is looking to expand after a tough year.
The market value of Emerald is estimated at $ 282 million by Bloomberg, despite having carried out an IPO of $ 303 million in 2017 and has organized 43 events since June.