Marijuana companies that are soaring in the stock market may tap bonds next

Medical marijuana companies will likely tap the Canadian bond market to fund growth as investors become more comfortable with the industry and the federal government gets set to legalize the drug by next year.

“There would be an appetite for more traditional debt arrangements and, given that leading cannabis companies have significant assets now, this may be one direction that we see the market go in the future,” said Cam Battley, executive vice president of Aurora Cannabis Inc., a licensed marijuana producer in Mountain View County, Alberta. “I suspect we’re headed in that direction right now.”