Although cannabis is illegal at the federal level in the U.S., certain other jurisdictions, such as Canada, have sanctioned its production. Thus, these jurisdictions pose unique opportunities to fund managers who may wish to reduce risks of investment in this sector. Regardless of where a manager chooses to invest, it must carefully value those investments – which can be more of an art than a science – and ensure that it has the proper support from service providers, such as law and accounting firms. This article, the last in a four-part series, assesses the international prospects for investing, including in Canada; public perception and valuation issues; and service providers in the space. The first article
discussed the legislative, judicial and executive cannabis framework, as well as state legalization and industry growth. The second article
analyzed cannabis deal structures, ways managers should diligence investments, disclosures managers should include in offering documents and anti-money laundering concerns. The third article
evaluated how federal illegality affects underlying businesses, as well as residency requirements for investing. For more on Canadian regulations, see our two-part series on how U.S. managers can raise capital in Canada while complying with local laws: Part One
(Apr. 27, 2017); and Part Two
(May 4, 2017).