As Canada’s politicians duke it out over the final version of the cannabis legalization bill, licensed producers have announced a windfall of financing to build out domestic capacity and tap overseas opportunities.
Since early June, companies announced plans or closed on funding deals worth at least 880 million Canadian dollars ($671 million), according to a Marijuana Business Daily analysis.
Chris Damas, editor of Barrie, Ontario-based BCMI Cannabis Report, said despite the uncertainty of how recreational cannabis sales will unfold this fall, investors are willing to pump money into a variety of companies, be it senior players, such as Aphria, or smaller ones, because of the potential for high reward.
Here are some of the offerings announced in the first two weeks of June:
- Canopy Growth (Toronto Stock Exchange: WEED) announced a CA$400 million convertible note offering.
- Aphria (TSE: APH) inked a stock sale agreement to raise CA$225 million.
- The Green Organic Dutchman (TSE: TGOD) announced a stock transaction to raise CA$25 million.
- Beleave (Canada Securities Exchange: BE) arranged a private placement of securities to raise CA$5 million.
- Good & Green arranged a private placement of securities to raise CA$10 million.
- Auxly Cannabis Group, formerly Cannabis Wheaton, closed a stock sale that will raise CA$115 million.
- CannTrust Holdings (TSE: TRST) raised CA$100 million in a stock sale.
Matt Lamers can be reached at [email protected]
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