48NORTH MAKE MONUMENTAL ANNOUNCEMENT WITH THE PURCHASE OF A US CANNABIS COMPANY

Just like that the Canadian’s find themselves establishing roots in the American cannabis market. Over the summer a Canadian cannabis company acquired a U.S. cannabis vaporizer company Rare Industries. They do business as Quill on the TSXV Venture Exchange which is Canada’s stock market, without a trading floor, all business is done electronically. In the recent past a deal like this would have never happened, it seems the grip is loosening as marijuana becomes more socially acceptable.

Strict guidelines must be met in order for the deals to be finalized, the opportunity for Canada is a groundbreaking one. The doors would then be open to conduct cross-boarder business.

48North is a Toronto based company in August they bought Quill for $2.1 million Canadian dollars in a mixture of stocks and cash. They also dropped another $3.15 million dollars Canadian betting on Quill meets financial targets. Experts say this type of deal is a milestone for the company, and serves as a blueprint for those to follow.

The Toronto Stock Exchange (TSX) and the TSXV have stated that companies with a direct business link to a U.S. cannabis company would be in danger of being delisted. That was in October of 2017, fast forward two-years and look how the tide has turned.

Andrew J. Wilder who is the chairman of the cannabis group at Torkin Manes a law firm in Toronto had this to say; “This is a big win for 48North, and it’s a big win for TSXV-listed cannabis companies in general, because it signals that if you’re involved in the business that Quill is involved in, you should likely not be subject to delisting. And in the proper circumstances with all the relevant facts, the TSXV will consider allowing you to acquire such a business and expand into the U.S. marketplace.”

The TSXV came up with monitoring system that consisted of four major points back in October 2017 to regulate the cannabis business.

• Direct or indirect ownership of, or investment in, U.S. companies involved in cultivation, distribution or possession of marijuana.
• Commercial interests or arrangements with such companies.
• A provider of services or products specifically designed for, or targeted at, such companies.
• Commercial interests or arrangements with companies engaging in ancillary services activities.

After this list surfaced some firms on the TSX and TSXV had to get rid of U.S. assets or sell because they violated 1 of the 4 restrictions. The companies that are left deal exclusively in CBD and THC oil no floral cannabis. The future of the vape business is one in constant debate and with the recent deaths and illness the future is murky at best.

(Image & Source Courtesy Of Marijuana Business Dail And Google Images)