Tell us about your firm and why you believe your deal was
selected for recognition?
PowerOne Capital Markets Limited is a diversified merchant bank
and Exempt Market Dealer focused on providing early stage
capital and advisory services to emerging growth companies
globally. In late 2013, PowerOne identified the upcoming changes
to the Health Canada legislation regulating the production and
access to Medicinal Cannabis as having the potential to create
a new and robust industry in Canada and globally. PowerOne
identified Bedrocan Cannabis Corp. as being the company
it thought had the best chance of being a market leader and
the company with which it wanted to align interests based on
the fact that Bedrocan and its Dutch partner and shareholder
Bedrocan BV are amongst the world’s most experienced in
medicinal cannabis research and product innovation and had
been producing and supplying pharmaceutical grade government
regulated medicinal cannabis for 13 years.
After meeting the company in February 2014, PowerOne lead
2 financings for a total of $15M+, took Bedrocan public via a
Reverse Take Over with its TSX.V listed CPC Vehicle (POCML2
Inc.), and also acted as a strategic advisor to Bedrocan Canada
during its “start-up phase” scaling the team from 4 employees
to 20+ by the end of 2014. In 2015 PowerOne acted as Financial
Advisor to Bedrocan in conjunction with its acquisition by Tweed
Marijuana Inc. (now Canopy Growth Corp (TSXV:CGC).
What were the benefits of the deal to the Dealer/Issuer and
The Issuer was able to receive the capital it needed in an
expeditious manner to execute on its business plan and thus be
in a position to apply for and obtain a license from Health Canada
in a highly competitive market. Investors were provided access
to participate in a unique opportunity via financing the private
start-up company, however, the investors were also offered an
opportunity for liquidity shortly thereafter with the company going
public within 6 months of the initial financing.
What was the broader impact of your deal? Has your deal
helped the economy or business sector in some way (e.g.
local, regional or national impact in jobs, investment,
The majority of the capital raised was used to initiate construction
of a 52,000 sq foot state of the art indoor production facility in
Toronto (which will employ 50+ individuals once operations are
ramped up). This all occurred within 6 months, and we believe it
demonstrates the ability of an EMD Registrant to move quickly
and provide the necessary capital and expertise for Canadian
economic activity, and is an important contributor to supporting
entrepreneurial business and creating wealth for Canadian
investors. Furthermore with operations up and running, Bedrocan
has since been able to supply thousands of Canadians with
Medicinal Cannabis to treat a wide array of ailments.
Why do you think other firms should nominate their deals for
the PCMA Private Capital Deals of the Year Awards?
Exempt Market Dealers play a unique and vital role within the
Canadian and global economy. As members we should continue
be ambassadors for our Association. The public recognition of
a successful deal will further promote our Association and its
members, for the benefit of all potential stakeholders.
2015 Biotechnology and Manufacturing
Deal of the Year
PowerOne Capital Markets Limited
Bedrocan Cannabis Corp.
“PowerOne dedicated a tremendous amount of time and effort
throughout our ongoing relationship with Bedrocan and we believe
that it was an excellent representation of what PowerOne is capable
of achieving for its clients and partners. Specifically, this deal
involved the identification a unique opportunity, financing & advising
a prospective growth company, taking it public and also helping the
company achieve its stated milestones as a true partner. It was very
much appreciated to see our combined efforts and achievements
recognized by the PCMA as the deal of the year.”
Pat DiCapo, Managing Director, PowerOne Capital Markets Limited
Winner of the 2015 PCMA Private Capital Markets Deals of the Year Award