Over $1 billion has been raised in the cannabis industry in 2016, according to Viridian Capital Advisors.
The billion dollar line was crossed last week in part with C$40 million ($29.8 million) raised by OrganiGram Holdings, Inc. The deal will allow for the build out and expansion of the company’s cultivation, extract and derivative facilities. In addition, Tetra Bio-Pharma, Inc. received C$1 million in a private placement with Aphria Inc. to initiate clinical trials in PhytoPain Pharma.
Scott Greiper, president and founding partner of Viridian, said that the $1 billion was mostly raised in North America, with minor amounts from other countries. He also stated that the Canadian market is a meaningful metric as to what the U.S. market could end up looking like in the future. Canada legalized medical marijuana years ago, but the program was slow to build. The election of Prime Minister Trudeau jump-started efforts for the medical marijuana industry.
Trudeau also made legalization of recreational marijuana an important issue in his administration. The speed of these moves sparked an investment boom in the country. “Publicly traded licensed producers are the largest deals in Canada,” said Greiper. “Another thing we’re seeing is underwriters there are buying deals and then selling it to their investor network. You don’t see this very often in the U.S.”
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