Amid the recent volatility in pot stocks, there is one group that appears to be capitalizing on the cannabis industry: the banks advising on a flourishing deal market for these companies.
About $582 million has been raised for cannabis companies through initial public offerings to date, while nearly $8 billion in mergers and acquisitions have been inked, according to data provided by Dealogic. An even greater number of deals have been done through less-traditional methods, such as reverse mergers and private placements.
That has been a boon to Canadian banks, in particular. Firms from Canada don't typically appear at the top of the so-called league tables — the quarterly and annual rankings of investment banks based on the amount of fees they generate from deals — as those spots are typically taken by large U.S. banks like Goldman Sachs and J.P. Morgan.
But when it comes to the cannabis industry, Canadian banks like Canaccord Genuity and BMO Capital Markets hold the highest rank, according to Dealogic.