The Globe and Mail reports in its Wednesday edition that the recent run-up in Canadian cannabis stocks -- triggered by the same forces behind GameStop's meteoric rise -- has unleashed a flood of money into a sector that had been largely starved of capital for more than a year. The Globe's Vanmala Subramaniam writes that with investor interest heightened, some cannabis players are taking advantage of the opportunity. Auxly Cannabis announced a bought-deal public offering last week, raising $20-million in the company's first significant raise since last April. Cannabis retailers High Tide and Fire & Flower Holdings each raised $15-million in February.
Sundial Growers, the Alberta-based licensed producer whose stock skyrocketed as much as 79 per cent last week after it became the subject of intense speculation on Reddit, raised $74.5-million (U.S.) in early February.
On Tuesday it announced a $22-million investment in licensed producer Indiva Ltd., based in London, Ont.
"It would have been hard for these companies to raise money or do deals if this was late 2019 into early 2020," said Aaron Salz, principal and founder of Stoic Advisory, a boutique investment company focused primarily on cannabis deals.
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