‘DEAR MR. PRESIDENT’: One marijuana company has a bold strategy to save American cannabis producers from getting left in Canada’s wake – Finance

  • The largest publicly traded marijuana companies, even if they are listed on American exchanges such as the NYSE, are completely banned for use in the United States.
  • This means that the entire US marijuana sector is inferior to the hundreds of billions of dollars in investments that go to Canadian firms instead.
  • Terra tech CEO Derek Peterson plans to change this, and it starts with a full-page ad titled “Dear Mr President,” published in the Wall Street Journal on Tuesday along with advertising spots on Fox and Friends.

Marijuana stocks thrive this year.

Several Canadian cannabis companies have successfully raised billions on US stock exchanges, such as the New York Stock Exchange and Nasdaq, but thanks to federal laws prohibiting them from working in the US, every cent of capital is north of the border.

Legally operating American marijuana companies — in places like Colorado where the drug is legal, at least at the state level — have largely missed their Canadian peers from the success story because of federal drug laws that stand between their capital and listing for a major exchange. Derek Peterson, General Manager, University of California Terra techsays American companies remain in the dust.

“The problem we work with as American operators is that Canadian companies use a healthy capital market to finance and raise a ton of capital, putting us at serious risk,” said a former investment banker who launched Terra Tech for almost seven years, said in an interview. “We’ll end up picking candidates, perhaps for our shareholders big premiums, but the problem lies in longevity.”

This is a problem that sends large investments – for example, Constellation Brands "$ 4 billion. USA "owned by Canopy Growth Corporation – outside the United States. In other countries, companies like Green Growth Brands, pursuing unusual methods, such as reverse absorption to list on Canadian exchanges and cash in on the trend.

“It would be foolish to sit on the sidelines and use our own money to grow our business,” said Peter Horvat, CEO of Green Growth Brands, a veteran of American Eagle, DSW and Victoria's Secret, said business insider. "You need to skate where the puck goes, not where."

Terra Tech and Peterson refuse to remain idle, and American companies are lagging behind.

In an effort to speed up modernization laws in the United States, Terra Tech launched a full-page ad in the Wall Street Journal aimed directly at President Donald Trump. Peterson also plans to buy advertising space during Fox and Friends, Morning talk show, which, as you know, is the president’s favorite.

“America is rapidly losing its competitive advantage for Canada,” says the ad. “The cannabis industry is legal in 31 states, but most domestic companies do not have access to traditional institutional banking services.”

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(Graham Rapier / Wall Street Journal / Terra Tech)

“If we don’t change our laws here, and banks don’t have the ability to go in and finance companies and access capital markets, we’re going to end up owning our industry owned by Canadian conglomerates,” Peterson said.

"We would prefer to create our own destiny and have access to Morgan Stanley's Bank of Americas and Goldman Sachs from the world to be able to raise real capital and compete in the global market."

Until then, most of the major Wall Street banks are likely to remain in the fields. None of the major research and development departments for sales launched coverage for marijuana stocks, despite the fact that the largest ones were larger than many of the other stocks they cover.

For example, canopy growth is the most valuable publicly traded cannabis company with a market capitalization of $ 14 billion, more than two times higher than the manufacturer of sportswear Under Armor, and extends only to two US research stores: Cowen and William O Nile.

“We work, at least, we communicate with the public because I don’t think that many of our political leaders understand what’s happening here in terms of capital markets,” Peterson said.

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