Expect U.S. Bankers in Canadian Grow-Ops After CannTrust Breach
- Companies are likely to bear cost of increased scrutiny
- Market too big for banks to eschew, former DEA official says
Technicians relocate marijuana plants at CannTrust’s production facility in Fenwick, Ontario.
Photographer: Galit Rodan/BloombergThis article is for subscribers only.
Canadian pot companies should expect higher underwriting fees and more bankers trudging through their grow operations in the wake of CannTrust Holdings Inc.’s regulatory breach, according to the former chief of staff of the U.S. Drug Enforcement Administration.
“The banks will have an increased need to understand what the rules are and how the companies are compliant,” said Jodi Avergun, a Washington-based partner at Cadwalader, Wickersham & Taft LLP.