Canadian cannabis firms raise CA$2 billion to fuel growth

Canada’s medical cannabis companies have raised 2 billion Canadian dollars ($1.57 billion) in capital this year to tap overseas opportunities and build out domestic capacity ahead of legalization.

While independent investment banks were involved in most of the transactions, the Bank of Montreal, through its subsidiary BMO Capital Markets, became the first major bank to lead an equity financing in the marijuana industry, The Globe and Mail reported.

If the trend persists, cannabis businesses could raise nearly CA$8 billion this year – more than four times the more than CA$2 billion raised last year.

Some of the top deals include:

• Aurora Cannabis struck a deal to raise up to CA$230 million.
• Canopy enlisted BMO Capital Markets to lead CA$175 million equity financing.
• Cronos hopes to raise up to CA$100 million in the second equity financing between a large bank and a medical marijuana company.

Aurora and Canopy are traded on the Toronto Stock Exchange under the symbols ACB and WEED, respectively. Cronos trades as CRON on the Nasdaq Global Market and the TSX Venture Exchange.

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