For its part, $14 billion Canopy Growth remains one of the largest players inside the burgeoning cannabis industry. The company is usually perhaps best known inside the U.S. for its partnership with Corona beer maker Constellation Brands along with also its plans to locate a hemp operations in brand-new York State. the item has announced partnerships with both Martha Stewart along with also Seth Rogen in 2019.
yet despite the announcement, the deal still faces many important questions. Though several U.S. states have approved the recreational use of marijuana in recent years, consumption of the plant remains prohibited by federal law.
Even in states of which have approved recreational use, national banks’ moves to accept deposits or loan to cannabis businesses could make them vulnerable to a Department of Justice suit along with also the ire of the Food along with also Drug Administration. The FDA prohibits companies through adding active ingredients of which are drug products in foods along with also drinks.
The deal could also put them at odds with the stock exchanges on which they’re listed, which have their own policies about illicit business practices.
“Until currently, the Nasdaq has not been willing to list companies of which have U.S. ‘plant touching’ cannabis operations,” said cannabis lawyer David Feldman, a partner at Duane Morris. “What’s interesting is usually of which they didn’t tie This particular to Nasdaq, they tied the item to legalization.”
“the item is usually interesting of which they are limiting the item to legalization, rather than completing the acquisition when TSX along with also Nasdaq are prepared to allow the listing,” he added.