Ontario-based cannabis producer CannTrust Holdings has laid the groundwork to raise up to $700 million Canadian dollars ($525 million) by filing a base level prospectus with Canadian securities agencies and the U.S. Securities and Exchange Commission.
The entrance of multinational pharmaceutical companies into Canada’s cannabis sector will mark one of the next major themes in the industry, analysts told Marijuana Business Daily.
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.
The number of applicants to cultivate cannabis in Canada rose 160% in the first quarter of 2018, as the industry ramps up for legalization late this summer. But the newest applicants aren’t expected to have product on store shelves until 2019 at the earliest because of the time required to get a sales license.
Canadian cannabis stocks are down over 40% since peaking in early January, leading analysts to speculate about what might ultimately trigger a rebound.
