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MGO | ELLO National Cannabis Alliance Releases Special Report on Cannabis IPOs and RTOs

LOS ANGELES, November 13, 2018 – The MGOELLO National Cannabis Alliance, a leader in the cannabis financial, tax and advisory services space, today announced the release of their whitepaper “Going Public in Canada: Roadmap to Cannabis Industry IPOs & RTOs” in conjunction with leading Canadian chartered accountancy and business advisory firm, MNP LLP.

With US-based cannabis companies blocked from many capital-raising activities, this whitepaper was created to empower cannabis industry leaders and investors by providing an overview of the key factors and processes needed to successfully go public in Canada. Following current market and regulatory conditions, the whitepaper discusses both Initial Public Offerings (IPOs) and Reverse Takeovers (RTOs) via side-by-side comparisons, and is focused on preparing venture issuers planning to list on the Canadian Securities Exchange (CSE). The report examines how U.S. cannabis entrepreneurs, executives and investors considering a Canadian go public transition can better navigate the process, while managing risk and optimizing market opportunities. Specifically, the whitepaper addresses:

  • The advantages and disadvantages of going public in Canada.
  • Differentiating between going public via IPO or RTO.
  • Determining whether the timing is right for a cannabis company to go public.
  • Assessing the resource investments and timelines for completing the transaction.

The MGO | ELLO National Cannabis Alliance and MNP have served as advisors to numerous US-based cannabis businesses that have successfully gone public in Canada and understand what is needed to successfully complete this journey.

“Going public is a complex capital market transaction that requires significant investment in resources and planning to execute successfully,” says Scott Hammon, COO, MGO | ELLO National Cannabis Alliance. “The members of the alliance between MGO, ELLO and MNP have developed this whitepaper to provide cannabis industry entrepreneurs, executives, and investors with the essential information to: assess whether going public is right for their company; understand the financial and operational processes required of going public; and provide a snapshot of considerations for operating a newly-public company.”

“For these complex financial transactions to be successful there are essential priorities and significant changes for the organization to execute both pre- and post-IPO,” said Evan Eneman, CEO, MGO | ELLO National Cannabis Alliance. “This whitepaper can help companies understand the complexities as well as the solutions available throughout the process and how to operate and grow as a public company.”’

The MGO | ELLO National Cannabis Alliance is part of the Go Public in Canada alliance, a collective of firms that helps US and global cannabis companies publicly list in Canada. Together, they provide legal, accounting, financial, and stock exchange support to start trading in Canada. The Go Public in Canada alliance has announced a presence at the Marijuana Business Conference from November 14-16 in Las Vegas with the “Going Public in Canada, Eh!” booth (#1827). In addition to MGO, ELLO and MNP, the booth will also have representatives from Aird & BerlisHaywood Securities and the Canadian Securities Exchange.

About MGO 
One of the fastest growing professional services firms in the US, MGO combines deep industry expertise with proven accounting and advisory solutions to deliver tangible results. MGO is ranked as one of the top CPA firms in the nation, with clients ranging from global aerospace and technology leaders to innovative start-ups and not-for-profit organizations – from the largest government entities in the country to the biggest names in entertainment. For more information, please visit http://www.mgocpa.com.

About ELLO 
ELLO is the leading professional services firm within the cannabis industry. Our mission is to help shape the business environment and regulatory landscape for the cannabis industry and develop and implement best practices for cannabis operators. We have worked with over 400 businesses to help them solve complex problems across a range of areas including regulatory compliance, capital markets advisory, tax services, operational improvements as well as staffing needs. Our team’s unique and innovative approach helps ensure our clients are able to grow and scale their businesses in an industry that is constantly changing. ELLO is an MGO member firm. For more information, please visit elloinsights.com.