Canopy Growth deal marks policy shift for Canadian banks

The Bank of Montreal’s participation in a major financing deal for licensed cannabis producer Canopy Growth marks a big policy shift for Canada’s biggest banks, which may be warming up to the cannabis sector.

Canopy, Canada’s biggest licensed cannabis producer, announced Wednesday that BMO Capital Markets and GMP Securities were leading its $175-million bought-deal offering of roughly five million shares.

Until now, Canadian banks have been reluctant to service the country’s burgeoning cannabis industry, leaving smaller banks and financial institutions to cash in on pot companies’ financing and commercial banking needs.

However, the legislative landscape in Canada is changing rapidly as the federal and provincial governments gear up for legalization of cannabis for recreational use by this summer, and pot stocks have seen significant gains over the past year in anticipation.

Read more at the Toronto Star

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