U.S. Cannabis Companies Adopt Innovative Ways to Go Public in Canada

This article discusses the recent trend of U.S. cannabis-related companies accessing capital through combinations with special purpose acquisition companies listed on Canada's NEO Exchange. Issuers with marijuana-related activities in the U.S. have faced obstacles in accessing North American public markets, prevented from listing on some U.S. and Canadian exchanges given the legal grey area in which marijuana exists in the U.S. SPACs present a unique vehicle for corporations to list on the NEO Exchange, providing access to a larger base of capital than the Capital Pool Company framework available on the Toronto Stock Exchange — Venture Exchange, the opportunity to list on a senior exchange, and a time and resource-efficient process of completing a "go public" transaction. Given the significant amounts of capital raised in the previous listing of three other SPACs on the NEO Exchange.