Canadian marijuana companies raise record cash ahead of legalization

Canada-based cannabis companies raised more than 3 billion Canadian dollars ($2.2 billion) in the first half of 2018 – a record amount – as the industry scales to meet expected exceptional demand when recreational sales kick off in October.

The total represents a mammoth 1,200% increase over the same period in 2017, when CA$222 million in equity and debt was raised, according to New York-based Viridian Capital Advisors.

Canada’s capital-hungry marijuana companies are increasingly turning to debt to fuel growth.

Access to debt rose from CA$30.8 million in the first half of 2017 to CA$658.2 million in the same period of 2018. (That does not include a CA$200 million loan by Alberta-based Aurora Cannabis last month.)

The average equity raise doubled from CA$10 million in the first six months of 2017 to CA$20.6 million one year later.

The number of equity financings rose from 19 in the first half of 2017 to 118 a year later, while the number of debt financings doubled from 10 to 22.

“There are still investors who believe that virtually any cannabis investment is a good one at this stage, given the nascent stage of the industry – that one can’t lose when it comes to cannabis,” said Louis Barré, president of Ottawa-based Cannab Intel, a cannabis consultancy.

He warned that other investors are much more cautious, recognizing that it already may be too late in certain parts of the sector and there’s a need to be highly selective and strategic.

“Not all companies will be winners as the industry matures and consolidates,” he said.

Matt Lamers can be reached at [email protected]

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One comment on “Canadian marijuana companies raise record cash ahead of legalization
  1. Bob on

    And it’s being laundered into the fat wallets of US investors, for whom are committing a federal crime profiting from cannabis sales. As well as putting that cash in Tax Havens which is also a crime of Tax Evasion, Or Organized Crime.

    Tax havens fund Canadian pot companies

    They took advantage of offshore funds

    ABCANN GLOBAL

    Cayman Islands: $ 12.4 million
    Guernsey: $ 150,000

    AURORA CANNABIS

    Cayman Islands: $ 32.5 million
    Barbados: $ 202,500

    CANNTRUST HOLDINGS

    Cayman Islands: $ 2 million
    Bahamas: $ 549,000
    Switzerland: $ 110,000
    Belize: $ 50,000
    Channel Islands: $ 75,000

    SUPREME CANNABIS CORPORATION

    Switzerland: $ 100,000
    Belize: $ 100,000
    Bahamas: $ 130,000
    Cayman Islands: $ 10.5 million
    Guernsey: $ 366,000
    United Arab Emirates: $ 25,000

    CANNABIS WHEATON INCOME CORP

    Singapore: $ 10,000
    Cayman Islands: $ 20.5 million
    Switzerland: $ 20,000

    HYDROPOTHECARY

    Cayman Islands: $ 15 million
    United Arab Emirates: $ 700,000
    Bahamas: $ 751,500

    DELSHEN THERAPEUTICS (48 North)

    British Virgin Islands: $ 3 million
    Switzerland: $ 200,000

    CRONOS GROUP

    Singapore: $ 225,000

    NEWSTRIKE RESOURCES

    Bahamas: $ 47,500
    Singapore: $ 70,000
    Switzerland: $ 24,400

    EMBLEM CANNABIS CORP

    Panama: $ 200,000
    Switzerland: $ 188,650
    Bahamas: $ 308,550
    Cayman Islands: $ 8.3 million
    Dominica: $ 47,190
    Belize: $ 40,250
    British Virgin Islands: $ 21,275
    Isle of Man: $ 57,500
    Luxembourg: $ 69,000

    GOLDEN LEAF HOLDING

    Bahamas: $ 308,000
    Cayman Islands: $ 5.7 million

    INVICTUS ®

    Seychelles: $ 765,000
    Cayman Islands: $ 14.13 million
    Switzerland: $ 27,000
    Luxembourg: $ 78,750
    United Arab Emirates: $ 10,500

    MARICANN GROUP

    Cayman Islands: $ 9.76 million
    Bahamas: $ 50,000

    THE GREEN ORGANIC DUTCHMAN

    Singapore: $ 9900
    Hong Kong: $ 47,850
    Barbados: $ 99,825
    Bermuda: $ 115,500
    Cayman Islands: $ 553,000
    Monaco: $ 34,980
    United Arab Emirates: $ 24,750
    Dominica: $ 123,750
    Luxembourg: $ 23,098
    Switzerland: $ 50,000
    Curacao: $ 11,500
    Aruba: $ 5750
    Panama: $ 80,500
    Malta: $ 10,000
    British Virgin Islands: $ 10,000
    Belize: $ 75,000
    Marshall Islands: $ 10,000

    HARVEST ONE CANNABIS

    Cayman Islands: $ 4.37M
    Luxembourg: $ 600,000
    Belize: $ 99,750
    Bahamas: $ 225,000
    Hong Kong: $ 499,999

    WEEDMD

    Cayman Islands: $ 2.28 million
    Bahamas: $ 25,000

    DELTA 9 BIOTECH

    Belize: $ 22,000
    Cayman Islands: $ 25,000
    Singapore: $ 300,000

    DOJA CANNABIS

    Cayman Islands: $ 12.5 million
    Bahamas: $ 70,000

    INDIVA LIMITED

    Cayman Islands: $ 199,500

    FV PHARMA

    Panama: $ 50,000
    Malta: $ 50,000
    Hong Kong: $ 2 million
    Belize: $ 50,000
    Bahamas: $ 10,000

    SUNDIAL GROWERS

    Bermuda: $ 540,000

    TOTAL OFFSHORE FUNDS: $ 165.2 MILLION

    Reply

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