U.S.-affiliated medical cannabis companies dominated Canadian Securities Exchange (CSE) fundraising in 2018, raising nearly $2 billion through 50 equity-related deals.
As of December 2018, 47% of the 124 cannabis-related companies trading on the CSE were based in the United States or had U.S. assets or interests.
Cannabis-related companies in the life sciences sector – which includes most of the marijuana-related companies listed on the stock exchange – accounted for 76% of all raises by CSE issuers for the year, totaling just under $3 billion through 270 deals.
Cannabis life sciences companies not based or operating in the U.S., including those operating in Canada and Israel, raised $1 billion through 220 deals.
The top eight financing deals – accounting for 35% of 2018 CSE raises – were by U.S.-affiliated cannabis companies.
They include Massachusetts-based Curaleaf Holdings (CSE: CURA) and New York-based Acreage Holdings (CSE: ACRG.U), which led the pack with individual deals valued at more than $300 million each.
The CSE noted that financing through reverse takeovers (RTO) represented 51% of all financing in 2018 – up from 7% in 2017.
Curaleaf, Acreage and other top performers – including Harvest Health & Recreation of Arizona (CSE: HARV) and MedMen Enterprises of California (CSE: MMEN) – are U.S.-based entities that listed on the CSE through RTOs.
Here’s what else you need to know:
- Of the 123 new CSE listings in 2018, 55 (45%) were cannabis-related companies.
- The diversified industries fundraising sector – which includes some investment companies that operate in the cannabis space – accounted for 13% of all CSE fundraising, displacing mining to become the second-most-active sector.
- Financing deals among U.S.-affiliated cannabis companies in the life sciences sector averaged $40 million each, while the average deal size for all other cannabis-related companies in the sector was $4.5 million.
Maggie Cowee can be reached at email@example.com