U.S. bankers are answering the call of cannabis as deals flow away from Canada
Small investment banks run by Wall Street veterans are looking to snap up a piece of the action amid a surge in marijuana deals
Tuesday, July 23, 2019
After years of Canada dominating the world of marijuana finance, the country’s head start is evaporating and U.S. bankers are increasingly answering the call of cannabis companies. For investment bankers willing to work in weed, the opportunity is large: With legalization spreading across the U.S., the marijuana industry is undergoing a wave of consolidation as large companies race to build a national presence. The rise of cannabis banking comes as investors turn their attention to the U.S. less than a year after Canada legalized marijuana. That has given America’s northern neighbour a head start, and a slew of reverse mergers and public offerings there has helped create the legal market in North America. But the tide is starting to turn as Canadian companies struggle to make a profit.
