Andrew Wilder speaks to Marijuana Business Daily on 48North’s purchase of US cannabis company — signals major shift by TSX Venture Exchange
The TSX Venture Exchange (TSXV) appears to be easing its opposition toward Canadian cannabis companies buying U.S. marijuana businesses.
The move would mark a major shift for the Canadian exchange and could open the door to more cross-border acquisitions – provided the deals meet strict conditions.
The apparent change in stance comes after a Canadian cannabis company listed on the TSXV purchased a U.S. cannabis vaporizer company over the summer: Rare Industries, which does business as Quill.
Toronto-based 48North’s acquisition in August of Quill for 2.1 million Canadian dollars ($1.7 million) in cash and stock – plus another CA$3.15 million conditional on Quill’s meeting financial targets – represents a milestone for the industry, experts say.
It could serve as a blueprint for other Canadian cannabis companies seeking to enter the huge U.S. market without running afoul of the TSXV’s rules.
Since October 2017, the Toronto Stock Exchange (TSX) and the TSXV said companies with direct business ties to U.S. marijuana companies risk being delisted.
“This is a big win for 48North, and it’s a big win for TSXV-listed cannabis companies in general, because it signals that if you’re involved in the business that Quill is involved in, you should likely not be subject to delisting. And in the proper circumstances with all the relevant facts, the TSXV will consider allowing you to acquire such a business and expand into the U.S. marketplace,” said Andrew J. Wilder, chairman of the cannabis group at the Torkin Manes law firm in Toronto.
This article was originally published in Marijuana Business Daily. Visit Marijuana Business Daily to read the complete article.
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