Reprinted with permission from Business Law Today, April 2019. ©2019 by the American Bar Association. All rights reserved. This information or any or portion thereof may not be copied or disseminated in any form or by any means or stored in an electronic database or retrieval system without the express written consent of the American Bar Association.
For much of 2018, Canada was the focal point of the global cannabis industry due mainly to Canada’s federal legalization of cannabis for recreational purposes, which occurred on October 17, 2018. Fueled by optimism surrounding both Canadian and global prospects, we saw a significant uptick in capital raising in the cannabis industry, with nearly US$13.8 billion raised in 2018, up from US$3.5 billion in 2017. Much of this capital raising activity was a result of U.S. cannabis companies that looked north of the border for access to capital markets.