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1.45 MB
Extraction Summary
0
People
13
Organizations
3
Locations
1
Events
2
Relationships
2
Quotes
Document Information
Type:
Financial report page
File Size:
1.45 MB
Summary
This page from an Ackrell Capital report details capital raised by publicly traded cannabis companies for the year ending September 30, 2017, highlighting that Canadian companies raised significantly more capital than those in the U.S. or Australia. It also provides an overview of the U.S. public capital markets for cannabis, noting that while a few trade on major exchanges like Nasdaq and NYSE, the vast majority are "penny" stocks on the OTC market characterized by high risk and regulatory scrutiny from the SEC and FINRA.
Organizations (13)
Timeline (1 events)
$317 million financing completed by GW Pharmaceuticals in December 2017
Locations (3)
| Location | Context |
|---|---|
Relationships (2)
Key Quotes (2)
"Most of the companies trading on the OTC (i) are “penny” stocks that trade at less than $5.00 per share"Source
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Quote #1
"The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have historically expressed concerns regarding the “penny” stock industry"Source
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Quote #2
Full Extracted Text
Complete text extracted from the document (2,153 characters)
ACKRELL
CAPITAL
CHAPTER VII Capital Markets for Cannabis Companies
CAPITAL
CHAPTER VII Capital Markets for Cannabis Companies
Capital Raised by Publicly Traded Cannabis-Related Companies (LTM ended September 30, 2017)
$1600
$1400
$1200
($U.S. millions)
$1000
$800
$600
$400
$200
$0
$1400
$1200
($U.S. millions)
$1000
$800
$600
$400
$200
$0
Canada
United States
Australia
Total
United States
Australia
Total
Amount Raised
$1056
$268
$26
$1350
$1056
$268
$26
$1350
Number of Deals
60
15
3
78
60
15
3
78
Average Deal Size
$18
$18
$9
$17
$18
$18
$9
$17
Source: S&P Global Market Intelligence. In December 2017, a $317 million financing was completed by GW Pharmaceuticals (Nasdaq: GWPH),
but the transaction occurred outside the date range of the analysis. Due to the size of the transaction, it is worth noting here.
but the transaction occurred outside the date range of the analysis. Due to the size of the transaction, it is worth noting here.
■ Public Capital Markets: United States
As of November 30, 2017, four cannabis-related companies were trading on Nasdaq (all in the phar-
maceutical industry and focused on receiving FDA approval for selected cannabinoid applications),
one was trading on the NYSE (a real estate investment trust, or REIT, focused on the acquisition and
management of properties leased to state-licensed operators for their regulated medical-use cannabis
facilities), two were trading on the NYSE American (both in the pharmaceutical industry) and more
than 200 cannabis-related companies were trading on the OTC.
maceutical industry and focused on receiving FDA approval for selected cannabinoid applications),
one was trading on the NYSE (a real estate investment trust, or REIT, focused on the acquisition and
management of properties leased to state-licensed operators for their regulated medical-use cannabis
facilities), two were trading on the NYSE American (both in the pharmaceutical industry) and more
than 200 cannabis-related companies were trading on the OTC.
Most of the companies trading on the OTC (i) are “penny” stocks that trade at less than $5.00 per
share, (ii) have limited trading volume and liquidity, (iii) have significant price volatility, and (iv) have
little or no institutional investor support. The U.S. Securities and Exchange Commission (SEC) and
the Financial Industry Regulatory Authority (FINRA) have historically expressed concerns regarding
the “penny” stock industry in general and both have issued alerts to warn investors about potential
scams associated with purported cannabis-related stocks. In addition, the SEC has initiated actions
against numerous purported cannabis-related companies and executives for fraud, insider trading,
stock manipulation and other activities.
share, (ii) have limited trading volume and liquidity, (iii) have significant price volatility, and (iv) have
little or no institutional investor support. The U.S. Securities and Exchange Commission (SEC) and
the Financial Industry Regulatory Authority (FINRA) have historically expressed concerns regarding
the “penny” stock industry in general and both have issued alerts to warn investors about potential
scams associated with purported cannabis-related stocks. In addition, the SEC has initiated actions
against numerous purported cannabis-related companies and executives for fraud, insider trading,
stock manipulation and other activities.
The following table provides a summary of cannabis-related companies traded on the U.S. stock
markets.
markets.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC
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