Canadian medical cannabis grower OrganiGram Inc plans to list on Monday, revealed its Chief Executive Officer. This would make it the second such company to go public on the venture exchange next week, indicating investor interest in the fast-growing industry remains high.
The Moncton, New Brunswick-based OrganiGram, along with Bedrocan Cannabis Corp, both intend to go public on Aug. 25. The two companies, through reverse takeovers, will then join another grower Tweed Marijuana Inc on TSX Venture Exchange, providing public markets investors a wider choice of three producers to invest in. Tweed listed at the exchange in April and is currently estimated to be worth C$100.8 million ($92.11 million), reports Reuters.
U.S. and international investors prefer investing in Canadian medical cannabis industry as its federally-administered program is a huge contrast to that of the United States, where the drug is still considered illegal at the federal level. Health Canada projects the market for medical marijuana to expand to C$1.3 billion over the next 10 years.
“The investment community is seeing Canada as a safe place to invest due to the regulatory framework,” OrganiGram Chief Executive Denis Arsenault told reporters, indicating that the company has attracted “tremendous interest” from U.S. and global funds.
OrganiGram, which was awarded a license in March, plans to target the French-speaking and Eastern Canadian Markets and has started building a sales team in Québec. It will start delivering its first medical marijuana shipment next week to more than 1,000 patients on its waiting list. The company has obtained funding worth C$10.6 million, with its latest round of financing being oversubscribed by four times. It will be listed under the symbol OGI at the venture market. Its investment banking advisors are Jordan Capital Markets and Jacob Securities while Tripp Business Law and McMillan are legal advisors. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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