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Globe says Curaleaf Holdings, others raise $1B (U.S.)

2018-10-29 07:47 ET - In the News

The Globe and Mail reports in its Saturday edition that a trio of United States pot firms raised nearly $1-billion from equity sales last week ahead of listing their shares on a Canadian exchange (all figures U.S.). The Globe's Christina Pellegrini and Andrew Willis write that in the largest share sale by a U.S. weed company in Canadian markets, Curaleaf Holdings sold $400-million. Acreage Holdings raised $350-million and Harvest Enterprises raised $200-million. There was strong demand for the offerings from Canadian, European and U.S. institutional investors, with more than $1-billion of demand for both Curaleaf and Acreage shares. Curaleaf, which was valued at $4-billion before its latest financing, is listing Monday on the Canadian Securities Exchange and will be the first of these large players to go public. The Globe says marijuana firms that operate in multiple U.S. states have become the new darlings on Bay Street. At the same time, investors have been dumping Canadian weed stocks a week after the country legalized recreational cannabis. The Canadian market is seen to be saturated, with 132 licences handed out by Health Canada. The firms are also facing heavy restrictions on advertising and branding.

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