Marijuana Business Factbook 2019

279 Cannabis Business Funding & Investing | Chapter 7 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. MJBIZDAILY.COM CHART 7.05: Overview Of Regulatory & Business Climate Faced By Publicly Traded Plant-Touching Companies Based In The U.S. & Canada Because Canada has legalized marijuana use ― both medically and recreationally ― at the federal level, publicly traded plant-touching companies based in that country enjoy several advantages over their U.S.-based counterparts. These advantages, like the ability to secure financing from traditional banks and aggressively pursue international business opportunities, have made them attractive to those looking to invest in the marijuana industry but are put off by the relatively more limited and risky opportunities of publicly traded plant-touching companies based in the U.S. Plant-touching companies based in the U.S. may trade on some of the Canadian exchanges but are exempt from each of the other opportunities available to similar companies based in Canada. Nearly 50 U.S. companies listed on the Canadian Securities Exchange (CSE) in 2018. Most of these companies listed through a process called a reverse takeover (RTO) ― a move in which a company acquires a publicly traded shell company to obtain a listing rather than pursue an initial public offering. New York-based Acreage Holdings joined the CSE in September 2018 after completing an RTO of Toronto-based Applied Inventions Management ― a company that had previously manufactured, marketed and distributed alarms for swimming pools. Denver-based MJardin purchased an inactive Toronto-based business, Sumtra Diversified, for its RTO, while MedMen joined the CSE from its Los Angeles headquarters by purchasing Vancouver, British Columbia-based OutdoorPartner Media.