A Canadian cannabis operator announced its plans to pursue an entry into the US with support from a cannabis investment firm.
On Tuesday (October 9), TerrAscend (CSE:TER) revealed its plan to enter the fractured US market through the acquisition of operators in legal cannabis states with therapeutic or recreational portfolios.
Michael Nashat, president and CEO of TerrAscend said in the press release the company is targeting a “tremendous opportunity” for its shareholders in the US market.
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Nashat indicated the company plans to grow its business organically through disciplined acquisitions. The model referenced by Nashat has been made popular by a collection of multi state operators of cannabis assets in the US.
Companies like iAnthus Capital Holdings (CSE:IAN), MPX Bioceuticals (CSE:MPX), CannaRoyalty (CSE:CRZ) and Green Thumb Industries (CSE:GTII) have gained the attention from investors who are now looking at the US cannabis market as an area with more significant potential gains than Canada.
These multi-state operators are all raising capital on the Canadian Securities Exchange (CSE) due to its lax stance on the US market compared to its TMX Group counterparts.
In the US, cannabis remains an illegal substance on a federal level under the Controlled Substances Act (CSA), despite the fact several states have legalized its use for medical and even recreational purposes.
Companies on the CSE have been allowed to pursue US operations so long as a regular risk disclosure form is shared with the exchange and shareholders.
From investors fearful of the US and LPs hastily divesting assets, to reorg’s for the purpose of Continue Reading