Canadian cannabis companies have been making big move after big move, pulling of mergers, securing investments, and consolidating in ways that were unthinkable to most just a few years ago. From major deals like Constellation Brands investing billions of dollars into Canopy Growth to Aurora and MedReleaf’s billion-dollar merger to companies like C21 Investments purchasing several Oregon companies, Canadian businesses are making major headlines are gearing up for full legalization after October 17th and beyond.
Great White North enterprises are leading the global cannabis market thanks to a progressive federal law that allows them to go public on financial markets, not only in their home country, but even in the United States. How can U.S. companies compete? By taking their businesses public-in Canada. Reverse mergers, also known as reverse takeovers, give U.S. businesses the opportunity to take advantage of Canadian financial markets and somewhat level the playing field, as Forbes detailed:
The Los Angeles-based cannabis company MedMen is listing on the Canadian Securities Exchange today, becoming the latest American pot company to go public in Canada. Like other cannabis companies, MedMen is going public through a reverse takeover of Ladera Ventures Corp. Merging with a public company is becoming a go-to strategy for cannabis companies in both the U.S. and Canada to list on Canadian stock exchanges.
Conflicting cannabis laws between the two countries have created an absurd state of affairs for both Canadian and American cannabis companies hoping to access capital markets: Canadian cannabis companies are listing on major U.S. stock exchanges, while American cannabis companies are heading to the Canadian Securities Exchange, finding themselves unwelcome in the U.S. (except for the OTC markets).
The upcoming International Cannabis Business Conference‘s “Canadian Financial Markets Overview and the Opportunities for American Companies” panel in Portland, Oregon, with Rosy Mondin, executive director of the Cannabis Trade Alliance of Canada, and attorney Robert Laurie, Founder of the AD LUCEM LAW CORP. will be invaluable for any U.S. company considering going public in Canada. These two experienced Canadian cannabis business professionals will provide an overview of how the industry has utilized financial markets and discuss how non-Canadians can take advantage as well.
If you operate a cannabis business, or are thinking of getting into the burgeoning industry, the ICBC in Portland this September 27th-28th is the conference for you. Purchase your early bird tickets by September 12th to secure your spot and save $200. Don’t miss your opportunity to learn the latest and network with top investors and entrepreneurs from around the world.