Page 32 - ARUBA TODAY

A32 FEATURE
Thursday 26 July 2018
For US pot companies, Canada is the land of opportunity

By GILLIAN FLACCUS major institutional investors,
PORTLAND, Ore. (AP) — including the century-old
Green Thumb Industries had New York investment bank
a business plan, expertise Cowen, were involved in
and plenty of ambition to Tilray's IPO.
grow its marijuana business. "The lesson is that the insti-
What the Chicago-based tutions will be there if you
company didn't have was have a good business plan
access to enough capital and your business is 100
to make it all happen. percent legal in the jurisdic-
So last month, the com- tion you're in," he said.
pany with $20 million in That's the problem in the
revenue from pot shops in U.S. While more states ap-
seven states turned its gaze prove legal marijuana, the
north and went public in federal government — and
Canada, where marijuana especially U.S. Attorney
soon will be broadly legal- General Jeff Sessions — re-
ized nationwide. main opposed, creating
The Canadian Securities Ex- uncertainty for banks and
change is quickly becom- investors.
ing the go-to place for U.S. "There's pent-up demand
cannabis companies or- all over the world, and all
phaned by their own stock over in the U.S., and it's all
exchanges because the getting forced into Can-
U.S. government still con- ada," said Troy Dayton,
siders marijuana an illegal chief executive of The Ar-
drug. cview Group, an Oakland,
Green Thumb took over a In this Wednesday, July 11, 2018, photo, Ben Kovler, CEO, Green Thumb Industries poses for a por- California-based canna-
publicly traded Canadian trait at the company's office in Chicago. bis investment and market
company, added an "Inc." Associated Press research firm. "Every large
to its name and went pub- investor and every large
lic. The company raised $67 Exchange, raising capi- become the "exchange of because their business is company is salivating over
million U.S. dollars, money tal and drawing attention choice for U.S. companies legal in the country where this market now, but they're
that will allow Green Thumb from wealthy investors in like ours." they are based. held back because of the
to get licenses in new states Asia, Europe and Australia Two-thirds of U.S. states Tilray Inc., a British Colum- uncertainty."
and open more retail stores who want to make a play now allow medical mari- bia-based medical mari- Meantime, U.S. consumer
across America. in the cannabis industry but juana, and nine of them juana company, became spending on marijuana is
"The phone rings more, are spooked by the U.S. and Washington, D.C., the first cannabis business exploding. It was $8.5 bil-
we're talking to more peo- federal prohibition. have legalized recreation- to complete an initial pub- lion in 2017 — the year be-
ple, and business has ex- Many more U.S. marijuana al use. Last month, voters lic offering on a major U.S. fore California became the
panded," company found- companies are lined up to in Oklahoma approved stock exchange when it world's largest legal mari-
er Ben Kovler said. "We're join them as the U.S. indus- medical marijuana, further began trading on Nasdaq. juana market — and is pro-
just excited about what's try quickly expands. Acre- evidence of the eroding It raised $153 million and jected to reach nearly $24
happening." age Holdings, one of the opposition even in conser- the stock jumped nearly 33 billion in the next four years,
In recent months, promi- United States' largest verti- vative states. percent on its first day of according to Arcview.
nent U.S. pot companies cally integrated cannabis U.S. companies need quick trading. U.S. companies that list in
including MedMen, Liberty companies, announced access to money to snap Chris Barry, a partner at the Canada are seeing eye-
Health Care and Chal- Monday it will list on the up limited production and Dorsey and Whitney law brow-raising valuations
ice Farms have listed on Canadian Securities Ex- retail licenses so they can firm in Seattle, handles mar- because investors hungry
the Canadian Securities change this fall because it's quickly establish them- ijuana investment deals to get a piece of the can-
selves in new markets. and mergers in the U.S. and nabis action have nowhere
"If you don't get in and get Canada. He noted that else to go, Dayton said.q
on, you're out," said William
Simpson, founder of Chal-
ice Farms, an Oregon com-
pany that was acquired
last year by a publicly trad-
ed Canadian company
called Golden Leaf Hold-
ings. "Time is of the essence.
You need money now, and
you need it yesterday."
Last week provided evi-
dence of American inves-
tors' willingness to jump
into the marijuana market
if given the chance. U.S.
stock exchanges will not
In this June 2, 2016 file photo, founder of Chalice Farms, holds list companies that do busi- In this Friday, Jan. 12, 2018 file photo, customers line up for rec-
display of cannabis-infused truffles, chocolates and gummy ness where marijuana is ille- reational marijuana outside of MedMen, a dispensary in West
candies at the company headquarters in Portland, Ore. gal, but several Canadian Hollywood, Calif.
Associated Press Associated Press
companies trade in the U.S.