Cross-Border Capital: U.S. Cannabis Firms Look to Canada for Financial Growth
In an insightful exchange with MJBizDaily, Erik Sloane of Cboe Canada shared his take on a significant trend now seen within the cannabis sector. U.S. cannabis companies face a formidable blockade due to the ongoing federal prohibition on marijuana, cutting off traditional capital avenues. However, Canadian exchanges are opening doors, and thereby, futures, for these firms.
Sloane, at the helm of Cboe Canada, observed that an increasing number of U.S. cannabis businesses opt to go public in Canada as a strategic move to secure funding. Canadian exchanges offer what the U.S. financial landscape presently cannot: a regulatory environment conducive to raising capital.
The shift to list in Canada is not just a workaround but a major strategic play. It grants U.S. cannabis operators access to a larger pool of investors and, critically, better positions them for when (not if, as many believe) U.S. federal legislation catches up. He pointed out Cboe Canada’s supportive infrastructure — a tier-one exchange that was incorporated into the Cboe Global Markets fold in 2022 — which has made it an attractive landing pad for prominent U.S. marijuana operators like The Cannabist Company Holdings and Verano Holdings.
Sloane underscored Cboe Canada’s commitment to fostering U.S. cannabis companies’ growth, touting the exchange’s dedication to service and to guiding MSOs through the complexities of capital market navigation while in Canada.
💼 The implications of Sloane’s Q&A with MJBizDaily are twofold: it not only illuminates current industry maneuvers but also underscores the potent agility of cannabis companies amidst regulatory flux. Innovating beyond boundaries, U.S. cannabis firms are setting themselves up for a future where once untapped capital now flows freely, thanks to our neighbor to the north.
This tier-one exchange is index-eligible, institutional investor-eligible, and demands higher governance and disclosure standards from its listed companies1.
Sloane emphasized the service orientation of Cboe Canada, which works closely with MSOs to help them navigate the capital markets side of their business while in Canada1.
For more detailed information, you can refer to the full Q&A article on MJBizDaily1.
Learn more:
1. mjbizdaily.com2. mjbizdaily.com3. cannabisbusinesstimes.com