Clarus Securities Inc.

Remaining At the Centre of Key New Industries

Brock Winterton

The evolving market focus on cannabis related companies translated into several lead, co-lead and manager roles including two lead roles for Aphria Inc. raising over $200 million supporting its aggressive growth plans and a co-lead role for MedReleaf in its $100 transaction to also support a build-out of capacity.  We also helped Liberty Health Services with its roll-out of production and dispensary services in the Florida medical market.  In all, we raised over $350 million in 5 transactions for cannabis related companies in Q4/17 and early 2018.

As a continuation of our special situation coverage focusing in the US healthcare industry, we completed an IPO for Akumin Inc., an outpatient imaging centre consolidation story that has considerable opportunities for growth.  Also in the special sit area we led a transaction for QYOU Media, a company accessing massive international markets with its curating and packaging of web content and newly evolving e-sport content.

Blockchain related companies also developed a following and Clarus nimbly participated in the space with its involvement with LeoNovus, a cloud solutions provider using blockchain technology, as well as having supported the growth of Global Blockchain Technologies Corp.

Traditional sectoral coverage also played a role as Clarus led two, co-led one and co-managed one transaction in the gold sector including one for a West African gold developer, two for US focused companies and one for a Canadian focused company.

  Issuing Company
$ Millions Raised
Lead
Co-Managed
  Aphria Inc.
$115
  Aphria Inc.
$92
  MedReleaf Corp.
$100
  Nuuvera Corp
$22
  Liberty Health Services
$23
  Akumin Inc. (non-raise IPO)
$2
  QYOU Media Inc.
$6
  Leonovus Inc.
$14
  Global Blockchain
$43
  People Corp.
$25
  Cardinal Resources
$12
  Aurelius Minerals Inc.
$3
  Lucky Minerals Inc.
$3
  Pershing Gold Corp.
$15

Market Upheaval in Q4 Still Provided Specialized Access

Brock Winterton

Clarus capital markets activities continued in Q4 2018 even though markets were very volatile and unforgiving.  Clarus remained active with transactions for gold mining exploration companies and cannabis related companies.  In the cannabis space, considerable M&A activity has emerged on the Canadian front as the market sorts out those that can deliver quality product consistently.  In addition, a highly specialized new Canadian marine technology company that focuses on underwater sensors for unmanned vehicles (drones) raised funds for its expansion while a US focused medical services company raised funds for its future expansion.

Emergence of World Leading Financial Market in the Cannabis Space

Brock Winterton

While cannabis companies predominantly focused on the Canadian market were the first to emerge in the financial market, we are now seeing US focused players accessing capital on Canadian markets.  Liquor companies, beverage companies, tobacco and pharma companies have begun to think about how they can play in the cannabis space.  Clarus remains deeply involved having brought two new companies public (totaling $102 million IPO values) and advised another on a $300 million M&A transaction.   

And let’s not forget the gold mining market.  Clarus raised funds for exploration related companies and played a major role in the annual Denver Gold forum hosting multiple events with a total of 12 companies and 15 money managers.

In total, some $523 million of value was raised or advised on.

What's Happening at Clarus...

Brock Winterton

  • While uncertainty continues to roil most segments of the market due to trade concerns, the passage of cannabis legislation in Canada removed the final legal uncertainty for this dynamic new industry.  Capital market activity in the cannabis space was widespread in June and Clarus was once again one of the leaders raising or advising on $294 million in three transactions in June alone.  We also continued to be active helping to raise $50 million for new and emerging businesses in modular construction and potentially the massive new LNG market; and $10 million for a new gold mining venture.  Total capital raised was $354 million for the month. (6/29/2018)

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