TORONTO Aug 20 Canadian medical marijuana
producer Bedrocan Cannabis Corp is set to go public on Monday,
offering investors an alternative to Tweed Marijuana Inc
in the nascent market, according to two sources familiar with
the company's plans.
The company has received an approval to list, under the
ticker symbol "BED", on the Toronto Venture Exchange and will do
so in a reverse takeover, the sources said.
A spokesman for Bedrocan said the offering was planned for
the coming weeks.
The move, which would come about four months after Tweed's
listing, highlights the growing appeal of a market the federal
government has projected will grow to C$1.3 billion ($1.19
billion) in the next 10 years.
Unlike the United States, where medical marijuana is illegal
on a national scale, Canada is one of the few countries with a
As a result, the industry is receiving increasing interest
and funding from venture capitalists and other investors in
Canada and the United States.
Bedrocan is a licensing partner of long-time Dutch medical
marijuana producer Bedrocan BV, which currently supplies the
Canadian company's product.
Toronto-based Bedrocan, which received its license from
regulator Health Canada in December 2013, is building out a
52,000-square-foot marijuana growing facility in the Greater
Toronto area that it expects to complete by the end of the year.
It has 1,100 registered patients across the country.
"We will be ready to start cultivating by the end of the
year, and we will have the product ready for sale by early
second quarter of next year," Chief Executive Marc Wayne said on
The company was valued at around C$57 million at the time of
its most recent financing, he added.
Bedrocan is not raising any capital tied to this listing,
Chief Financial Officer Michael Singer said. "We believe we're
sufficiently capitalized to execute on our current growth
The company has raised about C$16 million so far and could
use warrants to raise an additional C$16 million, if needed, he
Tweed, whose market capitalization is C$106 million, went
public through a similar reverse takeover in April, using a
shell company already listed on an exchange.
The method, often used by smaller firms to access public
markets, is typically faster and cheaper than traditional
initial public offerings.
PowerOne Capital Markets and Dundee Securities are providing
investment banking services for the offering.
OrganiGram Inc and Mettrum Ltd are two other licensed
producers that are expected to go public in the next few weeks.
(1 US dollar = 1.0961 Canadian dollar)
(Editing by Jeffrey Hodgson and Andrew Hay)