SEATTLE, WA--(Marketwired - May 8, 2017) - CFN Media Group ("CannabisFN"), the leading creative agency and digital media network dedicated to legal cannabis, announces publication of an article discussing Maple Leaf Green World Inc.'s (TSX VENTURE: MGW) recent move to increase its private placement and raise capital to execute its ambitious plans.
The Canadian cannabis industry is expected to reach upwards of C$22.6 billion in annual revenue over the coming years, according to Deloitte. Among the roughly 40 licensed producers authorized to cultivate the drug, the analyst firm believes that more than 600,000 kilograms will need to be grown each year to meet rising consumer demand. This translates to a compelling opportunity for the few existing licensed producers and those poised for a near-term license.
In the United States, the industry is projected to grow to an even larger $50 billion, according to Cowen & Co., despite the lack of federal legalization. Strong public support and the recent legalization of recreational marijuana in California and Nevada have proven to be significant catalysts for the country's growing industry. These dynamics have similarly translated to many opportunities for companies operating in various states.
Ambitious Plans Ahead
Maple Leaf has cannabis projects in both the United States and Canada. In Canada, the company is in the last stage of approval (Stage 5) to become a licensed producer under the Access to Cannabis for Medical Purposes Regulations (ACMPR).
In the United States, the company has established a joint venture with a California-based non-profit co-op to cultivate cannabis for its members on 20 acres of land in two greenhouses. These operations have been in production since September 2016. In addition, the company is in the process of acquiring and permitting a 33,500 square foot cultivation facility in Henderson, Nevada, which is located just 15 miles from Las Vegas, Nevada.
Strong Investor Demand
Maple Leaf has seen tremendous interest among investors, judging by the oversubscription of its private placement transactions.
On May 1, the company announced that, due to higher than anticipated demand and increased capital requirements for its Canadian facility, it would be increasing its previously announced private placement to an offering of 13,216,070 units at a price of C$0.55 per unit for aggregate gross proceeds of $7,268,838.50. Each unit consists of one common share and one common share purchase warrant that's exercisable for two years at a price of C$0.85 per share.