Just when you thought nobody could catch up to industry-leading giant Canopy Growth Corporation, along comes another Canadian licensed producer to challenge that title.
Markham Ontario-based MedReleaf had the largest initial public offering (IPO) for a marijuana producer in North American history this week. MedReleaf will list on the Toronto Stock Exchange (TSX) with the ticker LEAF. The $100.7 million CAD figure equates to approximately $75 million USD.
Of the many factors that contributed to this massive investment, one major catalyst is the upcoming legal adult–use market expected to roll out by July 2018. Adding to that pending industry boom is the number of Canadians now using medical marijuana, which tripled from last year to approximately 153,000 people.
Previous to the MedReleaf IPO, the cultivator was already one of the leaders in the medical marijuana industry. In the last quarter of 2016, MedReleaf reported $10.4 million in sales. Canopy Growth Corporation, also one of the leaders of the worldwide pot industry, reported sales of $9.8 million for the same time period.
Of the over $100 million raised, $80 million is being used to grow the company, with the remaining capital going towards buying shares from existing shareholders who may want to get out at this time.
Company growth is going to be focused on building out their production facilities in Bradford Ontario. MedReleaf will be expanding its existing manufacturing capacity, presumably to prepare for the adult–use market. The company will also be focussing on clinical research and further product development.