According to industry filings and sources, there are 4 medical marijuana producers of Canada who are working on the transactions that will enable them to go public in the upcoming few weeks and give investors fresh paths to a growing industry.
A holding company which is involved with 3 licensed producers of marijuana, Pharma Can Capital, Bedrocan Canada Inc, Mettrum Ltd and OrganiGram Inc is going to join the Tweed Marijuana Inc. which is the only listed producer currently on the TSX Venture Exchange. As soon as these companies will become public, the investors will be able to indirectly or directly own shares in seven, which includes the three associated with PharmaCan and of the 13 licensed medical marijuana producers by Health Canada. The market value of Tweed is $ 101 million and it went public in April through a reverse takeover of a listed company.
The rivals of the Tweed are involved in same deals that give fledgling companies to seek access to public markets and the ability to list through shell companies listed already on an exchange. There are many medical marijuana producers that are listed in the United States on the less-actively regulated over-the-counter market. However, the nationwide rules that are governing medical marijuana in Canada are different from the market of the United States, where marijuana is not legal at the federal level, and are making the nascent sector appealing to both foreign and Canadian investors.
It was reported by medical marijuana producers that there is a robust demand from patients as well as a rising interest from the venture capital firms and fund managers. Moreover, signs of initial consolidation have been emerged, with licensed producer bought by Pharmacan In The Zone Produce Ltd and a greenhouse facility acquired by Tweed in Ontario.
Bedrocan Canada has received a conditional approval from the TSX Venture Exchange for its listing and is expected to be the first of this crop to go public. It has been reported by the two sources which are close to the company that Bedrocan BV, which is a partner of Dutch medical marijuana producer is currently valued at around $57-million based on the most recent round of financing. It is building a medical marijuana growing facility of 52,000-square-foot in Ontario, which is going to begin production by the end of the year.