marijuana-pot

Canaccord Genuity’s third-quarter earnings got a major lift from the flurry of deals in the Canadian cannabis sector, which helped the investment bank see its net income rise more than 500% year-over-year.

Read: Advisors bullish on marijuana, financials, emerging markets: survey

The Toronto-based financial services and advisory firm reported adjusted net income before taxes of $50.3 million for the three months ended December 31, compared to $7.8 million during the same period in 2016.

Read: Canada’s cannabis production rivals alcohol: StatsCan

That works out to earnings per share for the fiscal third quarter of $0.31, well above the $0.17 expected by analysts surveyed by Thomson Reuters.

It also earned revenue of $309.4 million, marking a record for the organization.

Read: As marijuana rules become clearer, risks remain

Canaccord’s chief executive officer Dan Daviau says the primary driver was its capital markets division, which participated in 141 transactions globally including several large transactions in the marijuana sector as Canada moves toward legalization of recreational pot later this year.

Read: Small caps about more than cannabis in 2018

The investment bank was also kept busy by growing interest in blockchain, participating in transactions for firms such as Global Blockchain Technologies.

Originally published on Advisor.ca
Add a comment

Have your say on this topic! Comments are moderated and may be edited or removed by
site admin as per our Comment Policy. Thanks!