Bought deals in Canada’s marijuana business show an industry rapidly maturing
Canopy Growth Corp. (TSE:CGC), Organigram Holdings Inc. (CVE:OGI), and Supreme Pharmaceuticals Inc. (CNXS:SL) have all topped up their war chests this week with bought deal financings that put each of them in the rarified space among emerging public companies where they are able to attract seemingly endless amounts of capital at stout valuations with minimal dilution. Between the three companies the total amount of capital committed is $155 million.
There are two things that immediately stand out with these financings: The number of financings are increasing, and their size is increasing; and marijuana is now the fastest growing segment of the Canadian stock market.
People are immediately conditioned by the daily content deluge to categorize the mad rush as a bubble, which is understandable considering we have seen bubbles occur in housing, technology and the granddaddy of them all, sovereign debt and their derivatives.
But calling...
This marijuana news is brought to you by 420 Intel. For the latest breaking cannabis industry news, subscribe to the 420 Intel newsletter. If you'd like to promote your product or service in this area after every article, contact us.
Follow us on Instagram
Connect with us on Linkedin