Canada Is Now Cali’s Go-To Option For Fast Growth & Startup Funding
As with most startup businesses, cannabis startup funding is necessary at times. And when someone lacks a wealthy business partner or family member and can’t find a loan locally, they’re forced to look elsewhere for financial backing. For California cannabis companies looking to grow fast, one of the most viable options available is the Canadian Securities Exchange.
As of right now, California’s cannabis is in high demand, and this demand is driving the need for investors. The issue is that since cannabis is still not legal under federal law, the New York Stock Exchange or Nasdaq Stock Market is unavailable to those seeking cannabis startup funding. It’s a serious issue, especially for those who cannot find funding elsewhere.
Since the plant has been legalized in Canada, cannabis startup funding is available. Even some of the country’s most well-respected politicians state that they’ve smoked some of the sweet herb. Canada doesn’t see investing in this industry as taboo. With this being the case, it’s no wonder why those seeking cannabis startup funding are turning to Canada while searching for aid.
Since exchanges are now allowing cannabis companies, Canadian companies can find the money they need to accelerate their growth. Unfortunately, cannabis startups in the U.S. don’t have it so easy. Thus, Canadian investors see the U.S. as a viable investment opportunity.
Sean McNulty, the founder and principal at XIB, a capital markets consulting and advisory firm in Toronto that focuses on the cannabis sector, is quoted as saying, “Many Canadian investors view the U.S. as one of the most compelling investment opportunities in the world. There is more cannabis activity in California than in all of Canada.”
With this being the case, some Canadians are pushing cannabis startup funding to California businesses. For example, the Apothecarium, a business operating three dispensaries in San Francisco, now belongs to TerrAscend, a company based in Toronto. This acquisition was made in a deal exceeding $118 million. The Apothecarium will remain under the same name and management, and the 200 employees are receiving stock options in the parent company.
As we see in the case of the Apothecarium, cannabis business funding benefits both sides of the deals. The American business owners receive the financial backing they need while the Canadians get to expand their operations into a booming new market in the United States.