Credit Suisse Group AG has told customers in recent months it will no longer execute transactions in shares of cannabis companies with U.S. operations or hold them on behalf of clients, a cannabis company executive and other industry sources told Reuters on Wednesday. The Swiss lender was among a handful of banks that had been willing to buy and sell marijuana-related stocks for clients in the United States and hold those shares as a custodian. Credit Suisse declined to comment.
Ascend Wellness Holdings (AWH) Inc surged about 22% in its Canadian stock market debut on Tuesday to fetch a market value of $1.6 billion, the latest pot producer to cash in on strong investor demand for U.S. marijuana companies. Shares of AWH, which harvests cannabis, makes finished products and operates retail stores, closed at $9.75 on their first day of trading, compared with the initial public offering price (IPO) of $8. "I see private equity being the big player in this industry over the next few years," AWH founder and Chief Executive Abner Kurtin said in an interview.
NANAIMO, B.C. — Tilray Inc. and Aphria Inc. say their merger deal has now closed after receiving approval from shareholders of both companies. Tilray shareholders voted Friday in favour of issuing stock to Aphria's shareholders, but the Nanaimo, B.C.-based company has yet to reveal how many supported the proposal. About 99 per cent of Aphria shareholders voted in favour of the deal in April. The two cannabis companies announced in December that they will merge under the Tilray name with Aphria CEO Irwin Simon at the helm and Tilray CEO Brendan Kennedy joining the board. The new company is expected to have a pro forma revenue of $874 million and will control more than 17 per cent of the retail cannabis market — the largest share held by any Canadian licensed producer. While Tilray shareholders at Friday's meeting supported the Aphria deal, they voted against increasing the company's authorized capital stock from more than 743 million shares to 900 million shares. This report by The Canadian Press was first published April 30, 2021. Companies in this story: (TSX:APHA) The Canadian Press