It Also Came Without The Participation Of The Big Banks, Which Refuse To Finance Marijuana Companies For Fear Of Reputational Risk.

It also came without the participation of the big banks, which refuse to finance marijuana companies for fear of reputational risk. Many of the big banks have ties to the U.S., where medical marijuana remains illegal at the federal level, even though several more states voted to legalize pot during the November U.S. election. The disconnect sent more U.S. investors seeking exposure to the market north of the border. We can only finance things that are legal and the consumption of marijuana in Canada today is not legal. Medical marijuana is, but through our process and diligence, we cant take the risk that it could turn out to be recreational, said Daniel Barclay, head of investment and corporate banking at BMO Capital Markets. No matter how much money we could make its not worth the risk or the issues. Related Cannabis producer Tweed Inc. triples production space with purchase of former Hershey factory The reluctance among big banks to do business with marijuana players is indicative of a lack of understanding of the business, said Neil Maruoka, lead marijuana sector analyst at Canaccord Genuity. One of the most significant components of a companys valuation is its licence.

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