Westleaf Cannabis Inc. announced with IGC Resources Inc. (TSXV: IGC.H) announced on December 4th that IGC Resources has completed its previously announced private placement and that the company has received a $2.9 million strategic investment from Tilray Inc.
(NASDAQ: TLRY). Tilray made the investment as a sign of validation towards the Westleaf’s approach to retail cannabis location strategy with its Prairie Records brand that targets high-traffic and resort-style areas.
President and Chief Executive Officer of Westleaf Cannabis, Scott Hurd, stated: “As a global leader in the cannabis industry, we believe Tilray’s investment in Westleaf reinforces the strength of our approach to cannabis retail and our team’s execution capabilities and is a testament to Tilray’s confidence in our ability to capture market share. We are excited about the partnership with Tilray and look forward to continued growth together.”
Westleaf Cannabis has 20 to 30 physical retail locations scheduled to be completed by 2020 that are located in markets across west Canada. The company’s first location in downtown Calgary is expected to be completed by early 2019.
Risk of Prosecution for Marijuana-Related Companies. If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution. The Department of Treasury recently issued guidance noting: “[T]he Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. Many states impose and enforce similar prohibitions. Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”