The Financial Post reports in its Tuesday edition that the line which divides Canada from the United States is looking more and more illusory for the cannabis industry. A Bloomberg dispatch to the Post says that Canada's legalization in 2018 spurred a generation of start-ups north of the border and investors flooded in with the hope they would follow the path of Canadian alcohol companies, which got a head start on U.S. competitors before prohibition was repealed. Now, as more U.S. states have legalized cannabis, American firms have overshadowed their Canadian peers. Tilray's purchase of Medmen's debt last week is the latest example. It is similar to the first such creative cross-border deal, Canopy Growth's option to buy U.S. company Acreage Holdings. Both could let Canadian companies buy a U.S. target if legalization occurs. It is the third deal that gives Tilray a leg up on U.S. legalization: Its Aphria merger gave it Sweetwater Brewing Company in Atlanta, which it can leverage to make THC drinks or distribute cannabis in the Southeast, while Manitoba Harvest could convert to selling THC edibles. Fire & Flower also made a creative cross-border deal earlier this month by opening a dispensary in Palm Springs, Calif.
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