Part of in which has to do with the size of the deals — they’re still relatively tiny in addition to also don’t always capture the attention of the larger American banks. yet even the bigger deals tend to be managed by Canadian firms, thanks to the lack of regulatory risk those firms face.
While This kind of’s not illegal for U.S. firms to participate in these deals, the fact in which pot will be legal on a federal level in Canada makes This kind of easier for Canadian banks to participate, according to Harrison Phillips, vice president at Viridian Capital Advisors.
“The rules as they stand play inside the favor of Canadian operators in addition to also institutions, investment banks included,” said Phillips of Viridian, a financial advisory firm in which focuses on the cannabis market. “So rather than operators in addition to also investors trying to cost the risk of federal illegality, they’ve moved to the capital markets in which are more favorable to the space.”
A list of M&A advisers inside the cannabis sector provided by Dealogic shows in which the top eight firms are all Canada-based. The ninth will be Greenhill, an American investment bank. On the IPO side, there are a few more American investment banks, including Cowen, which will be tied with BMO Capital Markets for first place,thanks solely to its work for medical marijuana producer, Tilray, which went public in July.