Cannabis & Psychedelics

Cannabis & Psychedelics

The cannabis and psychedelics markets in Canada have moved from prohibition to regulation, creating new cross-sector opportunities.

To maximize opportunities for business growth and drive innovation in an increasingly competitive market, it's key to have advisors and advocates who can help you navigate the cannabis and psychedelics industries' unique business, regulatory and legal challenges.

As Canada's Law Firm, BLG has one of the largest cannabis and psychedelics-focused multi-disciplinary legal teams in the country. Our expertise in the industries' complex scientific, regulatory, financial and intellectual property factors are invaluable to our clients.

We have been instrumental in the most high profile and ground-breaking deals and decisions made on the TSX. We also manage complex corporate transactions and advise on operational issues and technology development.

Our cannabis specialists advise cultivators, processors, retailers and everyone in between or adjacent, domestic and foreign, including companies operating in:

  • pharmaceuticals
  • beverage alcohol and other food
  • tobacco
  • venture capital firms
  • investment dealers
  • analytical testing

We also advise entities that are not participating in the cannabis industry, including employers (safety-sensitive and otherwise), assisted living facilities, sports and recreation centres, and First Nations and others on preparing policies and regulations to mitigate risks introduced by both medical and adult-use cannabis.

Psychedelics—controlled substances that include psilocybin and MDMA—hold significant promise for a number of applications, including end-of-life depression, treatment-resistant depression, PTSD, eating disorders and substance use disorder.

Our psychedelics specialists are leading advisors for a wide range of stakeholders, including:

  • clinical trial sponsors
  • product developers and other innovators
  • financial institutions
  • clinics
  • non-profits

We also support key pro bono efforts to increase access to psilocybin, MDMA and other psychedelics.

 

Experience - Corporate and Securities Transactions

  • The Supreme Cannabis Company, a global diversified portfolio of distinct cannabis companies, products and brands, in its $345 million acquisition by Canopy Growth.
  • AgraFlora Organics International Inc. in its $35 million sale of its edibles business to Organigram Holdings Inc.
  • The underwriters led by Bloom Burton Securities in Field Trip Health Ltd.'s $95 million bought deal offering, a global leader in the development and delivery of psychedelic therapies.
  • Rubicon Organics Inc. in its $23 million bought deal public offering.
  • The agents led by Canaccord Genuity Corp. in Small Pharma Financing Inc.'s $58 million brokered private placement.
  • The underwriters led by Clarus Securities Inc. and Canaccord Genuity Corp. in Rritual Superfoods Inc.'s C$6 million initial public offering and listing on the Canadian Securities Exchange.
  • The underwriters led by ATB Capital Markets Inc. in The Valens Company Inc.'s $40 million bought deal, a leading manufacturer of cannabis derivative products.
  • Eight Capital and Canaccord Genuity Corp., as the co-lead underwriters, in WeedMD Inc.'s $17.25 million bought deal offering.
  • The Supreme Cannabis Company, a global diversified portfolio of distinct cannabis companies, products and brands, in its $25.9 million overnight marketed offering.
  • Sansero Life Sciences Inc. and Rise Wellness on their merger with CannaGlobal to create a new international psychedelic company.
  • Meta Growth Corp. (TSXV: META) (previously National Access Cannabis), Canada's largest publicly traded recreational cannabis retailer by revenue, in its C$10 million bought deal financing.
  • CanniMed Therapeutics Inc., on the following matters:
    • its contest for control with Aurora Cannabis, including hearings before the Ontario and Saskatchewan securities commissions, and favourable resolution
    • the proposed and abandoned acquisition of Newstrike Resources Ltd., by way of a share exchange.
    • its $60 million initial public offering. This was the second medical cannabis company to list on the TSX, and its IPO was one of only three IPO’s on the TSX in 2016.
  • The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), a global diversified portfolio of distinct cannabis companies, products and brands, in its $20 million acquisition of Truverra Inc., a private cannabis company, serving the Canadian and international cannabis markets through its wholly-owned subsidiaries, Canadian Clinical Cannabinoids Inc. and Truverra (Europe) B.V.
  • Wildflower Brands Inc. (CSE: SUN, OTC: WLDFF), an integrated health and wellness company, in its C$45 million acquisition of City Cannabis Corp., a premier licenced cannabis retailer in British Columbia. As a result of the transaction, City Cannabis is the only B.C based cannabis retailer to go public.
  • AltaCorp Capital Inc., as lead underwriter, in Valens GroWorks Corp.'s $43 million bought deal financing.
  • GMP Securities L.P., as lead underwriter, in the Flowr Corporation's $43.5 million bought deal financing.
  • Sunniva Inc., in connection with its initial public offering and listing of its shares on the Canadian Securities Exchange, and, prior to the IPO, its three acquisitions and a series of private placement financings with an aggregate value of approximately $40 million.
  • The agents, in connection with a $125 million offering of subscription receipts of MedMen Enterprises Inc., in connection with its listing on the Canadian Securities Exchange by way of a reverse take-over.
  • Terra Life Sciences, a company involved in R&D of innovative cannabis-derived medical products, in connection with a $46 million private placement of convertible debentures.
  • The agents, in connection with a $10.5 million private placement of convertible debentures by Cardiol Therapeutics Inc., a nanotherapeutics company developing proprietary formulations designed to deliver cannabinoids and other drugs.
  • Brassneck Capital Corp., in connection with its IPO on the TSX Venture Exchange, by way of a reverse take-over by National Access Cannabis Corp. The underwriters, in connection with the $52 million bought deal offering of common shares of Nuuvera Inc.
  • The agents, in connection with a $19 million offering of subscription receipts of a Canadian-based licensed producer that also holds licenses for the production, processing and wholesale distribution of cannabis in the U.S., in connection with its upcoming listing on the Canadian Securities Exchange by way of a reverse take-over.
  • The underwriters, in connection with multiple public offerings and bought deals of shares of Aphria Inc., a licensed producer, raising aggregate proceeds of approximately $670 million.
  • The underwriter, in connection with a $14 million bought deal offering of units of InMed Pharmaceuticals, Inc., a biopharmaceutical company specializing in the R&D of cannabinoid-based prescription drug therapies.
  • The underwriters, in connection with the $27 and $17 million bought deal offerings of shares of Emerald Health Therapeutics Inc., a licensed producer.
  • Maple Leaf Green World Inc., a Canadian licensed producer with operations in Nevada, in connection with its $7.3 million private placement
  • The agents, in connection with the $10 million private placement of subscription receipts of CannaRoyalty Corp. in connection with CannaRoyalty’s three-cornered amalgamation with Cannabis Royalties & Holdings Corp. CannaRoyalty is a royalty company providing financing for companies in the cannabis ecosystem.
  • The agents, in connection with a series of private placements of shares of Lexaria Bioscience Corp., with an aggregate value of approximately $5 million.
  • The agents, in connection with the $35 million private placement of subscription receipts of DFMMJ Investments Inc. in connection with DFMMJ’s three-cornered amalgamation with SecureCom Corp. DFMMJ, doing business as "Aphria USA", is a licensed producer in Florida.
  • Green Relief Inc., in connection with its $20 million private placement of convertible debentures.
  • Eight Capital and Canaccord Genuity Corp., as the co-lead underwriters, in WeedMD Inc.’s $17.25 million bought deal offering.

Experience - Ongoing Advisory

  • Entities at all stages of ACMPR license applications, including corporate, securities, regulatory, tax, intellectual property, commercial real estate, employment and litigation counsel.
  • International pharmaceutical companies in relation to cannabis supply, regulatory compliance, intellectual property and dosage forms.
  • National pharmacy chain in relation to cannabis supply, regulatory compliance, intellectual property, e-commerce and new product categories.
  • Payment processor in respect of working with LPs.
  • Natural health products company in relation to ACMPR licensing and intellectual property.
  • Food company in relation to the ACMPR, the NCR, and other aspects of positioning itself for sale of infused foods and beverages when those products are regulated for sale.
  • Multiple technology companies (domestic and foreign), including NCR licensed dealers and ACMPR applicants, in relation to:
    • wholesale cannabis supply agreements
    • scope of activities under ACMPR licenses, NCR licenses, and Marihuana Medical Access Regulations licenses extended by R v Allard
    • importation and exportation of cannabis under the ACMPR and the NCR
    • intellectual property licensing
    • patent rights, including drafting and filing patent applications in relation to biotechnology and dosage forms
    • plant breeder’s rights and trade secrets
    • the scope of wares and services that may be included in trademark applications to position for adult use and for product diversity
  • Drafting website terms and conditions, drafting a privacy policy, and advising in relation to advertising for LPs and social media companies.
  • Assisted living facility in relation to the scope of practice of nurses outside of hospitals, and in relation to a post-Cannabis Act adult use policy.
  • Immigrating skilled individuals to Canada for work in the cannabis industry.
  • Employment law matters and employee drug testing.

 

 

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M&A at BLG.

 

At the heart of every M&A opportunity is an ambition — to harness a market opportunity, to forge a new partnership, to shape growth on your terms. Strengthen and support your goals, backed by BLG’s strong regulatory acumen and deep expertise in the sectors driving the Canadian economy today and tomorrow.

 

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