The number of prospectuses filed in Ontario by cannabis companies in connection with public offerings of securities declined dramatically in 2023 compared to previous years, according to new data from the Ontario Securities Commission.
Experts say that largely stems from a combination of decreased investor interest in the downtrodden marijuana sector, companies wanting to limit shareholder dilution amid low stock prices and macroeconomic headwinds such as rising interest rates.
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Overall, 407 prospectuses were filed in Ontario for public offerings across a wide range of industries, down meaningfully from 702 in 2022. (A prospectus is a disclosure document a company must issue before offering investment securities to the public.)
However, the decrease in public offerings for cannabis businesses in particular was much more pronounced
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