PharmaCann files IPO that could value $1 billion

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PharmaCann files IPO that could value $1 billion

Cannabis stickers on a Weed World store window are pictured the day New York City legalized recreational marijuana use in New York State.

- PharmaCann, one of 10 initial public cannabis licensees in New York, has filed for an initial public offering that could value it at well over $1 billion, sources familiar with the matter told Reuters.

The planned IPO would help PharmaCann raise funds before New York state begins recreational weed sales, expected sometime next year. The IPO could take place in fall, one of the sources said.

PharmaCann is known in five additional U.S. states to plan and operate over-the-counter trading on the Canadian Securities Exchange and for double-listing of its shares in the United States, one of the sources said.

Canaccord Genuity has tapped PharmaCann investment bank Canaccord Genuity for the offering. Canaccord is expected to be the lead underwriter, while more banks are likely to be hired, sources said. Canaccord did not offer an immediate comment.

The sources have declined to be identified, as the information is not publicly available.

In March, New York became the 16th U.S. state to legalize recreational marijuana- sale, kickstarting a race from companies to secure position in a market expected to be among the world's biggest.

PharmaCann, one of the most admired U.S. weed producers with a market capitalization of $5.6 billion, took a 10.5% stake in Cresco Labs for $110.4 million in June. The deal valued PharmaCann at $1.1 billion and the IPO was likely to be a higher valuation, sources said.

PharmaCann, which currently operates four medical cannabis retail stores and a cultivation facility in New York, submitted paperwork for its IPO to U.S. and Canadian regulators during the past 30 to 45 days, two of the sources said.

AWH Holdings Inc. was listed by PharmaCann rival AWH Holdings Inc in May, and the shares have risen 38% since then giving it a market value of $1.9 billion.

Although federal legalization of marijuana grows, it remains federally illegal and companies like PharmaCann, which grow or sell the plant, are prohibited from listing on Nasdaq and the New York Stock ExchangeNew York Stock Exchange.

Some 18 U.S. states allow medical use of weed, while 36 legalize recreational use? In 2025, legal cannabis sales could reach $45 billion, according to analysts at JMP Securities.

PharmaCann has received multiple takeover offers in the last few months, including from blank check firms, sources added. Despite the confidential filing, PharmaCann could still decide to abandon the IPO and go public or take a different route to stay private, the sources said.

MedMen Enterprises Inc had agreed to be taken over by New York rival PharmaCann in 2018 for around $700 millions, but the deal fell apart the following year.