RE:RE:Globe & Mail; WEED bought deal very positive for MJ sector.This exactly shows that MJ stocks are not overvalued and there is much more potential to grow. Who is next for BMO to invest in? THCX is just in thier back yard. It seems today MJ stocks are waiting some positive news from US to explode.
scruffman wrote: A couple of things here. I agree with the authors that this is a very positive and significant event. It especially gives me comfort to know that there are still institutions willing to buy in big amounts at these elevated price levels. The interesting thing is the market has pretty much shrugged it off....
slightfan1 wrote:
Globe says BMO's "shock" Canopy deal 3 times oversold
2018-01-19 07:47 ET - In the News
See In the News (C-BMO) Bank of Montreal
The Globe and Mail reports in its Friday edition that BMO's $200-million bought deal with Canopy this week sends a signal that banks are warming up to pot companies. The Globe's Christina Pellegrini and James Bradshaw write that there are still no clear policies within most banks about what counts as acceptable risk on the cannabis front. Canopy appears to have earned bankers' trust. It is the largest public pot company by market value; it was the first to go public and the first to score a major backer in alcohol giant Constellation Brands, which took a 9.9-per-cent stake in Canopy. BMO's $200-million stock sale attracted more than $600-million in demand and is fully sold, with an estimated 80 per cent of shares going to institutional investors. Nearly six million shares were sold in the deal for $34.60 apiece, and Canopy's shares traded well above that price on Thursday, closing at $36.96. Banks that are incorporated in the United States -- RBC, TD, BMO and CIBC -- have the risk that U.S. regulators could crack down on regulated financial services firms providing support to the industry. "BMO coming in is absolutely a game-changer and everybody was in shock," said one banker at a competitor bank.