Chart: US-affiliated medical cannabis firms led fundraising on Canadian Securities Exchange in 2018

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 maggiec@mjbizdaily.com

3 comments on “Chart: US-affiliated medical cannabis firms led fundraising on Canadian Securities Exchange in 2018
  1. John Saputo on

    Money raised within the US does not mean production of Kilograms will be produced in the US.
    So before you invest it would be wise to know where a company is growing and producing its cannabis and at what price per ounces as compared to a competitor in foreign lands.
    From what I now understand it is the land size and production that will determine profitability.
    Especially when a company is sold or it mergers with another. Case in point, Pharma Cielo!

    Reply

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