ich, anonymous investors in tax havens have staked at least $ 165 million into licensed pot manufacturers in Canada, our Investigation Office found.
Cayman Islands, Bahamas, Belize, Dominica, Aruba, Curacao, Malta, Barbados, Isle of Man, British Virgin Islands, Marshall Islands, Seychelles, Panama, Luxembourg; there do not seem to be places too sparsely populated or too far away to resist the lure of the Canadian pot.
In total, 35 of the 86 producers licensed by Health Canada, or 40% of them, received offshore funding in the last two years, according to the financial documents consulted.
Among them, there is a pot firm administered by Alain Dubuc, columnist of La Presse , and Martin Cauchon, owner of newspapers.
These types of private placements are restricted to deep pockets investors, who generally must have net assets of at least $ 5 million.
Hidden Investors
None of the pot producers agreed to reveal the identity of these mysterious investors. Most simply declined our interview requests.
"We do not know who is behind these investments and it does not eliminate the possibility that organized crime is involved," recognizes Professor Ken Lester, President of Lester Asset Management and Assistant Professor in the Faculty of Management of the University. McGill.
However, according to him, the industry "knows that it must be spotless because it is scrutinized by the whole world".
According to Sylvain Théberge, spokesman for the Financial Markets Authority (AMF), the general public does not have the right to know the identity of investors settled in tax havens.
"This information remains [...] confidential," he wrote. According to Théberge, the AMF has in-house names of tax haven companies that invest. But it does not systematically ask who the real owners of these companies are.
Many Americans
Why does the Canadian pot attract so much investor interest? Cam Battley, VP at Alberta potato producer Aurora, says only Canadian or Australian producers are listed on the stock market.
"Canada is ahead of legalization and our businesses are well established, so an investor who wants to participate in this rapidly growing industry is in Canada."
His company, which owns facilities in Pointe-Claire on the Island of Montreal, received $ 32.5 million from the Cayman Islands, a well-known tax haven. For some time, Mr. Battley has been making presentations to investors in the United States and Europe.
"Behind these offshore, there are also many Americans. [...] Investing public money, such as pension funds, in cannabis would look bad and violate certain ethical restrictions in the United States where cannabis remains illegal at the federal level, "says Ken Lester.
It is unclear how much offshore investors will pay to Canadian tax authorities when selling shares or paying interest. But certainly, tax havens used to invest in the pot have zero or very low tax rates on profits.
Cayman Islands, Bahamas, Belize, Dominica, Aruba, Curacao, Malta, Barbados, Isle of Man, British Virgin Islands, Marshall Islands, Seychelles, Panama, Luxembourg; there do not seem to be places too sparsely populated or too far away to resist the lure of the Canadian pot.
In total, 35 of the 86 producers licensed by Health Canada, or 40% of them, received offshore funding in the last two years, according to the financial documents consulted.
Among them, there is a pot firm administered by Alain Dubuc, columnist of La Presse , and Martin Cauchon, owner of newspapers.
These types of private placements are restricted to deep pockets investors, who generally must have net assets of at least $ 5 million.
Hidden Investors
None of the pot producers agreed to reveal the identity of these mysterious investors. Most simply declined our interview requests.
"We do not know who is behind these investments and it does not eliminate the possibility that organized crime is involved," recognizes Professor Ken Lester, President of Lester Asset Management and Assistant Professor in the Faculty of Management of the University. McGill.
However, according to him, the industry "knows that it must be spotless because it is scrutinized by the whole world".
According to Sylvain Théberge, spokesman for the Financial Markets Authority (AMF), the general public does not have the right to know the identity of investors settled in tax havens.
"This information remains [...] confidential," he wrote. According to Théberge, the AMF has in-house names of tax haven companies that invest. But it does not systematically ask who the real owners of these companies are.
Many Americans
Why does the Canadian pot attract so much investor interest? Cam Battley, VP at Alberta potato producer Aurora, says only Canadian or Australian producers are listed on the stock market.
"Canada is ahead of legalization and our businesses are well established, so an investor who wants to participate in this rapidly growing industry is in Canada."
His company, which owns facilities in Pointe-Claire on the Island of Montreal, received $ 32.5 million from the Cayman Islands, a well-known tax haven. For some time, Mr. Battley has been making presentations to investors in the United States and Europe.
"Behind these offshore, there are also many Americans. [...] Investing public money, such as pension funds, in cannabis would look bad and violate certain ethical restrictions in the United States where cannabis remains illegal at the federal level, "says Ken Lester.
It is unclear how much offshore investors will pay to Canadian tax authorities when selling shares or paying interest. But certainly, tax havens used to invest in the pot have zero or very low tax rates on profits.
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