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Three more US cannabis companies heading to Canadian stock exchange
[NEW YORK] Three more US cannabis companies are heading to a Canadian stock exchange via reverse takeovers, including one that counts John Boehner as an adviser.
Acreage Holdings, which has cultivation, processing and dispensing operations across 14 states, is looking to raise US$200 million through a private placement alongside the RTO that would value the company at between US$2 billion to US$2.5 billion, according to people familiar with the matter. The company plans to list on the Canadian Securities Exchange via a reverse takeover of Applied Inventions Management Corp. The former speaker of the US House of Representatives sits on the New York-based company's Board of Advisers.
Curaleaf Inc, a pot grower and seller with operations in 12 states, is also seeking to raise at least US$350 million through a private placement that will value the company at about US$4 billion, the people said. It plans to list on the CSE through a reverse takeover of Lead Ventures Inc.
Both companies didn't immediately respond to requests for comment.
And Chicago-based Cresco Labs LLC said Wednesday that it will list on the CSE via a reverse takeover of Randsburg International Gold Corp. Cresco recently completed a private placement for gross proceeds of US$100 million, led by Beacon Securities.
The CSE has become the go-to listing spot for cannabis companies with US operations, where marijuana is still illegal at the national level, as the big New York exchanges and the Toronto Stock Exchange don't allow listings by companies that are violating federal law in the jurisdiction where they operate.
Reverse takeovers don't require a full securities commission review and dispense with prospectuses vetted by regulators. They're usually considered cheaper and faster than an initial public offering, and are widely used in the cannabis industry.