The Financial Post reports in its Thursday edition that cannabis companies with their sights on an expanding global market are still finding it makes financial sense to keep Canada as their home base.
A Bloomberg dispatch to the Post reports that Cannapharma is growing through acquisitions and ventures in the U.S., Jamaica, Portugal and Abu Dhabi. However, even though it plans to sell extracts globally, it is keeping its headquarters in Toronto, where it was founded in 2019.
That is because Canada's early legalization of cannabis has resulted in financial support that is not available anywhere else, says Cannapharma's Okan Altug. In addition to access to financial services, cannabis-related companies can list on Canada's exchanges, and it is easier for them to arrange financing. That is just not possible in the U.S., where cannabis is still illegal on the federal level.
All in all, no other country offers the same package to fuel Cannapharma's aspirations. In one year, the company has reached a valuation of $37-million (U.S.) and attracted venture capital funds and individual investors from the Netherlands and Turkey, says Mr. Altug.
© 2021 Canjex Publishing Ltd. All rights reserved.