When cannabis companies merge, they often seek D&O insurance to protect their board members in the event something unforeseen happens during an acquisition.
M&A is particularly strong in the U.S.
After recreational marijuana was legalized in Canada in October 2018, many lawsuits were filed alleging mismanagement or financial misrepresentations by cannabis company board members.
The companies listed on those exchanges generally need to reach a certain market size; the higher your market cap, the more shareholders you’ll have.