(Bloomberg) -- The flood of U.S. pot companies onto Canadian stock exchanges continued Friday, with DionyMed Holdings Inc. receiving conditional approval for its listing after raising C$35 million ($26 million) in a private placement.
DionyMed, which owns cannabis brands and distribution platforms in California and Oregon, will have a market value of about C$300 million, Chief Executive Officer Edward Fields said in an interview. He expects the company to generate $70 million in revenue this year and $197 million next year.
The firm plans to expand into other states following the recent midterm elections, which saw Michigan legalize recreational marijuana and a changing of the guard to a more pro-pot Congress. Cannabis remains illegal federally in the U.S.
“We're quite optimistic about the improvement around banking issues and tax issues and compliance issues federally, and I think that's part of the call to arms for expanding and having a true national footprint,” Fields said. “We are actively working on our expansion plans in Nevada, Massachusetts, Colorado and other cannabis-friendly markets.”
DionyMed will trade on the Canadian Securities Exchange via a reverse takeover under the ticker DYME. A date for the debut hasn't been set. The CSE is the only exchange in Canada to allow listings of cannabis producers with U.S. operations. These firms raised a combined C$1.5 billion on the exchange in the first 10 months of the year.
To contact the reporter on this story: Kristine Owram in Toronto at kowram@bloomberg.net
To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, David Scanlan, Chris Fournier
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