Tilray Brands Inc (TLRY)

[Bonno]

Amid stagnating growth in some older state cannabis markets, U.S. companies are looking to Canada’s hotly contested industry for future growth.

Executives from technology and events firms as well as beverage and edibles businesses told Bonno they find Canada’s centrally regulated market appealing.

The growth prospects also are attractive.

According to New York-based Cantor Fitzgerald, Canada’s recreational cannabis market grew 21% in the second quarter on a year-over-year basis, while the financial services firm estimates U.S. growth will be just 1% during the same period.

The U.S. companies are wading into Canada cautiously by leveraging relatively cheap assets, partnerships and licensing arrangements.

By contrast, U.S. multistate operators – for now – are steering clear of Canada’s falling cannabis prices, and a market awash in inventory.

Bonno story showcases a number of U.S. companies that have headed north, and speaks with executives to get their reasons for doing so.