Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • +44 (0)20 7454 5110
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All Public Company News
      • All Multimedia News
      • View All News Releases

      • Regulatory News

      • D/A/CH Regulatory News
      • UK Regulatory News
      • View All Regulatory News

  • Business & Money
      • Auto & Transportation

      • Aerospace & Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads & Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking & Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers & Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalisation
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls & Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil & Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defence
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation & Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking & Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers & Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines & Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics & Personal Care
      • Fashion
      • Food & Beverages
      • Furniture & Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewellery
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks & Tourist Attractions
      • Gambling & Casinos
      • Hotels & Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Animal Welfare
      • Corporate Social Responsibility
      • Economic News, Trends & Analysis
      • Education
      • Environmental
      • European Government
      • Labour & Union
      • Natural Disasters
      • Not For Profit
      • Public Safety
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Overview
  • Distribution
  • Paid Placement
  • Multimedia
  • Disclosure Services
  • SocialBoost
  • Rooms
    • MediaRoom
    • ESG Rooms
  • AI Tools
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Hamburger menu
  • Cision PR Newswire UK provides press release distribution, targeting, monitoring, and marketing services
  • Send a Release
    • Phone

    • +44 (0)20 7454 5110 from 8 AM - 5:30 PM GMT

    • ALL CONTACT INFO
    • Contact Us

      +44 (0)20 7454 5110
      from 8 AM - 5:30 PM GMT

  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • News in Focus
    • Browse News Releases
    • Regulatory News
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • Overview
  • Distribution
  • Paid Placement
  • Multimedia
  • Disclosure Services
  • Cision Communications Cloud®
  • AI Tools
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists

Big Canadian Banks Finally Break the Ice in the Marijuana Business


News provided by

USA News Group

12 Feb, 2018, 14:00 GMT

Share this article

Share toX

Share this article

Share toX

LOS ANGELES, February 12, 2018 /PRNewswire/ --

FN Media Group Presents USA News Group News Commentary  

USA News Group - After sitting on the sidelines for quite some time, it appears that the big Canadian banks are willing to get into the cannabis business with BMO announcing participation.

It's positive new for the cannabis industry that is looking to expand in advance of legalization.

Companies heralding the news in the grower and producer space include Aphria (TSX: APH) (OTC: APHQF), Aurora Cannabis (TSX: ACB) (OTC: ACBFF), AmeriCann, Inc. (OTC: ACAN) and MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF).

As Marijuana legalization sweeps across the globe, Canada is arguably at the head of the pack. Since 2001, medical marijuana has been legal in the country and a bill that would legalize recreational use of the drug is currently in advanced stages of enactment.

Leaders in the producer group that are moving quickly to deal with demand include Aurora Cannabis (TSX: ACB) (OTCQB: ACBFF), Aphria (TSX: APH) (OTCQB: APHQF), and AmeriCann, Inc (OTCQB: ACAN). These companies are already licensed legal growers of cannabis and experiencing massive demands from new markets.

Beyond the Licensed Producers (or LPs) in the grower/producer end of the business, companies are combining production with product development, sales and distribution. MYM Nutraceuticals Inc. (CSE: MYM) (OTCQB: MYMMF), is one of these, with three sizeable growing operations under advancement combined with multi-brand development right through product distribution.

BMO TAKES THE LEAD 

So far, financial players have been relatively slow to react to the immense opportunities that exist in the burgeoning marijuana industry. Large banks have been typically adverse to providing capital to even the medical marijuana operations.

However, these institutions may be finally turning up to the party, with (BMO) the Bank of Montreal leading an equity financing round worth $175 million for Canada's largest licensed producer, Canopy Growth Corporation.

The deal, done in partnership with investment firm GMP Capital Inc., and others like it that are likely to happen in future will give marijuana product firms access to requisite capital for future growth.

The reluctance by financial partners to avail capital to cannabis producers has impeded growth momentum in an industry that is still struggling to gain a foothold in mainstream medical and soon, the recreational industries.

Canopy's deal with BMO and GMP was largely enabled by BMO's private brokers who have long supported Canopy.

Prior to this move, producers have been forced to seek funding from individual investors, venture capital funds, and credit unions among others.

GOOD NEWS FOR ALL PLAYERS 

The news has yielded solid optimism among other licensed producers, with Aurora Cannabis Executive VP Cam Battley telling the media that large banks will move in for more equity financing starting this year.

Although there has been no verbal indication to the effect, there is a possibility that Aurora might be looking to secure a deal similar to what Canopy got.

According to Canopy CEO Bruce Linton, the level of stigma that marijuana firms have traditionally faced from banks is debilitating, to the level where simply opening a bank account was nearly impossible a few years ago. He attributed this reluctance to pressure from regulators in US, where attitudes towards marijuana are much more conservative than in Canada.

The fact that Canopy does not operate in the US was therefore a key factor in the company's success with the deal with BMO.

SMALLER MYM NUTRACEUTICALS FEELING THE RIPPLE EFFECT 

The effects of positive financing by the "mainstream" is expected to quickly translates to juniors like MYM Nutraceuticals - a company moving up to the field of the major legal producers in Canada.

MYM Nutraceuticals is forwarding three planned facilities; a grow operation in Laval, Quebec which just completed phase one, a joint-venture for a 1 million square foot facility in Casino, Australia and its flagship facility; a 1.5 million square foot greenhouse facility in Weedon, Quebec.

Weedon will be a massive-one of the largest grow operations on the planet. It will house the potential to produce an estimated over 150,000 kg of cannabis per year. That would bring $750 million in revenue to MYM.

In continuity its global strategy, MYM also recently signed a MOU with NEWCANNA S.A.S., a leading Colombian medical cannabis company to form a new joint-venture company.

MYM Nutraceuticals is also diversifying by advancing formulation and production to support branding and distribution of its entities Joshua Tree, MyHemp Skin Therapy, and HempMed offerings.

These subsidiaries develop and sell a variety of cannabis based natural products including custom-made cannabis products with tailored CBD chemistries along with tinctures, concentrates and oils, edibles, vape products and pet care products.

MYM does not currently have any operations in the United States and says it will not engage in that country unless significant changes to the federal laws regarding cannabis are made.

BANKS ARE PLAYING THE SAFE BET 

With the pending Canadian bill largely expected to succeed in both houses, requisite regulatory frameworks aimed at quality and competition control, as well as taxation systems will come into place.

The move is seen by the current Canadian government as a great way to undercut illegal pot growers and add a new stream tax revenue.

Companies that have operations in the US market may continue to struggle to get help from lending institutions, but with no so in the Great Green North. Even without involvement of big banks, it is all guns forward for the industry.

According to Carl Merton, CEO of Aphria, the company has been able to raise $500 million without getting any banking from any major Canadian bank.

Meanwhile, Canadian cannabis companies may have set the standard for sales growth and early profits. Juniors, including MYM Nutraceuticals are seeing strong support from private equity and looking to grow quickly to keep pace.

POTENTIAL COMPARABLES 

Aurora Cannabis (TSX: ACB) (OTCQB: ACBFF)

Through its wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., Aurora Cannabis is a major LP, operating a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta. Aurora made waves when it announced the construction of its 800,000 square foot "Aurora Sky" facility second 800,000 square foot production facility at the Edmonton International Airport. Aurora's also involved in Quebec, with its third 40,000 square foot production facility set to be completed in Pointe-Claire, Quebec, on Montreal's West Island. Aurora also holds a minority stake in leading extraction technology company Radient Technologies Inc., based in Edmonton, and a minority stake in Australian company Cann Group Limited, which was the first in Australia to conduct research on and cultivate medical cannabis. Aurora also owns German wholesale importer, exporter, and EU medical cannabis distributor Pedanios.

Aphria (TSX: APH) (OTCQB: APHQF)

Aphria Inc., boasts itself as one of Canada's lowest cost producers, that produces, supplies and sells medical cannabis. Located in the greenhouse capital of Canada, Leamington, Ontario, Aphria provides pharma-grade medical cannabis, and quality patient care. Aphria was the first public LP to report positive cash flow from operations, and the first to report positive earnings in consecutive quarters.

AmeriCann, Inc. (OTCQB: ACAN)

AmeriCann, Inc. develops, owns and supports advanced medical cannabis cultivation and processing facilities nationwide. The Company has a multi-market portfolio of over 1,000,000 square feet of sustainable cannabis production infrastructure in various stages of development. To support local businesses that seek to serve cannabis patients in their communities the company initiated the AmeriCann Preferred Partner Program. Through this program they provide an essential set of resources including advance cultivation facilities, access to a team of experts and in certain cases, capital for our partner's businesses. In addition, AmeriCann's team has been instrumental in winning cannabis licenses in competitive application processes throughout the country.

For a more in-depth look into MYM you can view the in-depth report at USA News Group: http://usanewsgroup.com/2018/02/05/meet-the-biggest-sector-of-2018-and-perhaps-your-lifetime/

Article Source: 

USA News Group 

http://usanewsgroup.com 

info@usanewsgroup.com

Legal Disclaimer/Disclosure: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of USA News Group only and are subject to change without notice. USA News Group assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

DISCLAIMER:  USA News Group is Source of all content listed above.  FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein.  The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM.  FNM is not liable for any investment decisions by its readers or subscribers.  FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  FNM was not compensated by any public company mentioned herein to disseminate this press release.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

Media Contact Information:
FN Media Group, LLC
editor@financialnewsmedia.com  
+1(954)345-0611

Modal title

Also from this source

As Majors Hit Their Stride, Contrarian Capital Eyes Gold's Next Wave

As Majors Hit Their Stride, Contrarian Capital Eyes Gold's Next Wave

USA News Group News Commentary – While institutional headlines have focused on record-setting quarters from the world's biggest gold producers, a...

Behind the FDA's AI Push: A Growing Class of Public Healthcare Innovators

Behind the FDA's AI Push: A Growing Class of Public Healthcare Innovators

USA News Group News Commentary – In a clear sign of growing confidence in artificial intelligence (AI) for healthcare, the U.S. Food and Drug...

More Releases From This Source

Explore

Banking & Financial Services

Banking & Financial Services

Health Care & Hospitals

Health Care & Hospitals

Medical Pharmaceuticals

Medical Pharmaceuticals

Pharmaceuticals

Pharmaceuticals

News Releases in Similar Topics

Contact PR Newswire

  • +44 (0)20 7454 5110
    from 8 AM - 5:30 PM GMT
  • General Enquiries
  • Media Enquiries
  • Partnerships

Products

  • Content Distribution
  • Multimedia Services
  • Disclosure Services
  • Cision Communications Cloud®

About

  • About PR Newswire
  • About Cision
  • Partnering Opportunities
  • Careers
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
  • Data Privacy

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
+44 (0)20 7454 5110
from 8 AM - 5:30 PM GMT
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 PR Newswire Europe Limited. All Rights Reserved. A Cision company.