Capital is pouring into the Canadian marijuana sector faster than ever, as companies prepare for the country’s anticipated adult-use legalization this summer and bulk up for international expansion.
Through the first 10 days of 2018, companies closed on a variety of funding deals or announced financing plans worth at least 978 million Canadian dollars ($780 million), according to a Marijuana Business Daily analysis.
That amount roughly matches the CA$960 million raised in the first seven months of 2017.
“Canadian cannabis executives are realizing this is probably the last time before legalization when they can sell their shares for two, three or even four times what they were just a few months ago,” said Chris Damas, editor of the Barrie, Ontario-based BCMI Cannabis Report.
Toronto-based Beacon Securities analyst Vahan Ajamian said, “We are definitely seeing heightened investor enthusiasm for the sector over the past few weeks – and companies are tapping into it to finance expansion plans and build war chests.”
Below are the securities sales announced during the first 10 days of 2018:
- WeedMD (TSX Venture: WMD) closed a stock sale that will raise CA$34.5 million.
- Canopy Rivers (subsidiary of WEED) closed a private placement of stock totaling approximately CA$26 million.
- Organigram (TSX Venture: OGI) arranged a securities sale to raise CA$100 million.
- Nutritional High International (CSE: EAT) arranged a private placement of securities to raise CA$10 million.
- MedReleaf (TSE: LEAF) inked a stock transaction to raise CA$132.7 million.
- DOJA Cannabis Company (CSE: DOJA) closed a private placement of securities worth CA$12.5 million.
- Emerald Health Therapeutics (TSXV: EMH) closed a stock sale totaling CA$15 million.
- Maricann Group (CSE: MARI) completed a CA$40 million private placement stock offering.
- Harvest One Cannabis (TSX Venture: HVST) announced a plans to raise CA$40.2 million.
- Hydropothecary (TSX Venture: TCHX) inked a stock sale agreement to raise CA$130 million.
- Aurora Cannabis (TSE: ACB) plans to raise up to CA$230 million through a securities offering.
- Golden Leaf Holdings (CSE: GLH) entered into a stock sale to raise CA$15.03 million.
- Liberty Health Sciences (CSE: LHS) struck a deal to raise CA$23 million through the sale of its securities.
- InMed Pharmaceuticals (CSE: IN) closed a private placement of securities totaling CA$9.4 million.
- Aphria (TSE: APH) closed a stock sale totaling CA$115 million.
- Quadron Cannatech (CSE: QCC) aims to raise CA$5 million through a securities sale.
- Cronos Group (TSX Venture: MJN) increased the size of its stock sale to approximately CA$40 million.
Matt Lamers can be reached at [email protected]
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