North American Cannabis Industry Raised $1 Billion in 2016

By:
North American Cannabis Industry Raised $1 Billion in 2016

https://pixabay.com/en/dollar-characters-city-silhouette-213619/

Viridian Capital Advisors recently reported the global cannabis industry has raised more than $1 billion in 2016, according to a Dec. 21, 2016, article in Forbes.

Most of the $1 billion-plus in capital investments was raised in the United States and Canada, with other countries contributing small amounts, Scott Greiper, president and founding partner of Viridian, said.

The industry passed the $1 billion milestone in December 2016 when Canadian company OrganiGram Holdings, Inc., raised $29.8 million, or $40 million in Canadian money, Forbes reported.

Greiper said the Canadian marijuana market is an indicator of how the U.S. market might go.

“Publicly traded licensed producers are the largest deals in Canada,” said Greiper. “Another thing we’re seeing is underwriters there are buying deals and then selling it to their investor network. You don’t see this very often in the U.S.”

Greiper also mentioned the real estate investment trust Innovative Industrial Properties, the first marijuana business publicly traded on the New York Stock Exchange. The trust will buy facilities that grow marijuana, which is a comfortable move into the marijuana industry for some investors because they are already familiar with real estate, Greiper said.

“Since the election cycle, the deal flow has mostly been in the real estate sector and principally in California and Massachusetts,” he said.

The staff byline designates content that has been written by a staff writer of MJINews.

Related posts

Top