Oregon Cannabis Connection
A major score was made in the marijuana business world earlier this week when a Canadian company raised C$110 million ($75 million USD) in their Initial Public Offering (IPO). MedReleaf, based in Markham, Ontario, surpassed CanniMed Therapeutics Inc. who raised C$69 million in December.
The company priced their stock at C$9.50 per share, which would give the company a total valuation of C$895 million, second only to Canopy Growth Corp. who will begin trading on June 7th. The sales consisted of C$80 million in shares from the treasury and another C$20 million in existing private stockholder shares.
The company will trade on the Toronto Stock Exchange under the ticker LEAF. GMP Securities led the offering, which is expected to be eclipsed soon by other offerings. Some of the currently listed companies went public through reverse takeovers, not IPOs.
According to an analyst in Toronto the medical marijuana market increased to over 153,000, which is a 300% increase from last year. The country is poised to have a legal market start operation by July 1st of 2018.
“Production is struggling to catch up,” Vahan Ajamian of Beacon Securities told Bloomberg.com. “Then you throw on recreational in 12 to 13 months from now and obviously that’s going to give more traction for shareholders.”
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