Banking in the cannabis and industrial hemp industries has just gotten easier with the recent move from Canopy Growth Corp (TSX: WEED). The Bank of Montreal (NYSE: BMO), with a revenue of $19.19 billion dollars in 2016, is the first major financial institution to finance a publically traded company in the space.
On Jan 17, 2018 Canopy announced that the Bank of Montreal owned BMO Capital and GMP Securities had approved of $175 million dollar underwritten of stock, at the price of $34.60 per share.
This deal shows that financial institutions are warming up to a world where cannabis and hemp are legal throughout the country. The only reason the Bank of Montreal would make a move like this is because they see cannabis and hemp as a viable commodity. Transactions like these change the everyday investors perspective because it’s their job to follow where the money is flowing, and lately the money has been flowing to Canadian public companies like Canopy Growth Corp in the sector.