Bedrocan is set to become Canada’s latest publicly traded medical marijuana company, with plans to list on Toronto’s junior stock exchange Monday.
The Toronto-based company’s stock will be available at the opening bell for investors to buy and sell under the symbol BED on the Toronto Venture Exchange. The move comes after the company forged a reverse takeover with a shell company, the same way rival Tweed Inc. also went public earlier this year.
Bedrocan Canada is a licensing partner to the Dutch medical marijuana giant Bedrocan BV, which is currently supplying its product, while the Canadian company waits for its strains to grow.
Bedrocan Canada is valued at about $55 million or 85 cents per share. However, the company said it doesn’t know what it will start trading at as that will be determined by the market.
Spokesman Cam Battley said the decision to list on the junior venture exchange was made because it is “a natural path into the capital markets for new entrants in a nascent market.”
“Our desire in the future is to potentially move up to the TSE however we cannot predict the timing of such a move at this time.”
The company has already raised some $16 million in private financing and isn’t trying to raise any more capital by going public. Instead, Battley said, the listing was a condition of its recent financing in order to put it in a position to raise more money if required for future endeavours.
Bedrocan is one of the fewer than 20 licensed producers granted approval from Health Canada to grow and sell marijuana to patients who have a doctor’s approval.
The market’s potential for growth has raised a huge amount of interest in the sector. Everyone from currently licensed patients to junior mining companies are looking into ways to profit from the green rush.
Health Canada has received more than 600 applications from those looking for a federal license to start growing and selling the controversial medicine.