Marijuana Legalization Could Draw U.s Investment Bonanza To Canada – Business – Cbc News

You’re going to see a lot of U.S. marijuana companies listing on the Canadian exchanges up here – Analyst Khurram Malik “We have one core holding up there currently but we would love to expand that,” says Morgan Paxhia, the hedge fund’s founding partner and chief investor. South of the border, Poseidon invests only in businesses that are “one step away from touching the leaf,” such as producers of cooling systems used in marijuana production facilities or vaporizer technology. That’s because despite the fact that a number of states including Oregon, Colorado and Washington have legalized the recreational use of marijuana, U.S. federal laws that prohibit the drug leave cannabis producers operating in a legal grey zone. “We wouldn’t want to put our (investors) at risk with that exposure in the United States,” says Paxhia. “That’s why Canada is of interest to us, because we can then participate in that growth.” Big money waiting for guidance Experts say American institutional investors looking for cannabis plays are heading north, where medical access to the drug is legal countrywide, to avoid running afoul of U.S. federal laws or sinking their money into companies that could be shut down by U.S. federal authorities. “That’s a theme we’ve been seeing for a long time foreign investors investing in Canadian companies, to the point that most of the capital raised now for Canadian companies comes from overseas,” says Khurram Malik, a Jacob Securities analyst who tracks the medical cannabis space. Trudeau’s election win could accelerate that trend further says Alan Brochstein, the founder of 420 Investor and communications and marketing firm New Cannabis Ventures.

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