06:33:05 EDT Sun 27 Sep 2020
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save

Cannabis Summary for Dec. 20, 2019

2019-12-20 21:10 ET - Market Summary

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

The Canadian Securities Exchange Composite Index rose 11.36 points to 372.01 Friday, ending the week down 14.5 points. Joseph Lusardi's United States-based Curaleaf Holdings Inc. (CURA) gained 48 cents to $7.42 on 857,800 shares after arranging a $275-million (U.S.) term loan from "a syndicate of lenders," none of which were named. The loan will bear interest at 13-per-cent annually and will mature in four years. Even though paying 13-per-cent interest is expensive, shareholders were pleased with the loan since it has been difficult for U.S.-based cannabis companies to get financing. They can issue more shares, but that dilutes existing shareholders.

Major banks in the U.S. have avoided investing in cannabis companies as a result of marijuana's status as a federally illegal drug. U.S.-based cannabis companies are hoping that changes soon. The Secure and Fair Enforcement (SAFE) Banking Act, which would allow banks and credit unions to finance state-legal marijuana companies, passed the U.S. House of Representatives in September. The House vote passed 321-103 (needed two-thirds majority), including votes in favour from 91 Republicans. Still, because the House is Democratic-controlled, that is the easier of the two steps. The more difficult part will be getting the bill through the Republican-controlled Senate.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS

© 2020 Canjex Publishing Ltd. All rights reserved.


Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.