home Business & Finance Canada’s small financial firms get buzz from weed stocks

Canada’s small financial firms get buzz from weed stocks

Equity offerings by Canadian weed companies tripled to a record high of nearly US$1 billion in 2017, with nearly two-thirds of that in the final quarter, data from Thomson Reuters showed.Darryl Dyck/The Canadian Press files

TORONTO — Investors are betting Canada’s smaller financial firms could see a jump in revenues after they helped fund marijuana companies ahead of the country’s planned legalization of the drug this year.

Equity offerings by Canadian weed companies tripled to a record high of nearly US$1 billion in 2017, with nearly two-thirds of that in the final quarter, data from Thomson Reuters showed.

Much of the issuance for pot producers has been led by small independent brokers, such as Canaccord Genuity Group Inc. In addition to being paid underwriting fees, the brokers can sometimes receive warrants, which could have become significantly more valuable after a surge in the marijuana companies’ stock, market players said.