Cannabis in North America has managed to become one of the largest growing industries over the course of the past several years. With new laws just passing in Canada to allow recreational cannabis and more to come, it seems that now is the time for cannabis to take over.
Marijuana stocks in the industry have also been performing quite well due to these new regulations, but there is still a large amount of work that needs to be done before the industry is able to reach its full potential.
The Prime Minister of Canada, Justin Trudeau recently stated that cannabis will officially become recreationally legal for adult use as soon as October 17th. This makes Canada the first G7 nation to legalize the use of cannabis nationwide. The move by the Canadian government has also helped to set an example for how the U.S. can begin to update its policy in the near future. The bill known as C-45 was voted on and passed with a large majority. Many have stated that this is the reason for the strong positive move that has been occurring in the cannabis market.
According to one report “Marijuana stock Canopy Growth (CGC), whose Canadian ticker is WEED, was up 6.4% on the stock market today. Cronos Group (CRON) climbed 5.25%. Marijuana-focused exchange-traded fund ETFMG Alternative Harvest (MJ) rallied 2.35%. AdvisorShares Vice ETF (ACT), which also has exposure to cannabis, ticked up 0.7%.” These stocks represent some of the largest in the market as a whole and are continuing to reshape the way that marijuana is viewed and how the industry works throughout the world.
One of the companies that many have been watching is the company Scotts Miracle-Gro (NYSE:SMG). Scotts has been a part of the investments that many have been making in the ancillary market associated with cannabis. Due to the overwhelming amount of regulations on packaging and other aspects of the industry, many new businesses have come to light hoping to change this issue and supply new products that meet regulations.
The company Tilray, another Canadian cannabis company stated recently that they will be filing for an IPO with class 2 shares on the NASDAQ under the ticker symbol TLRY. The company released a statement recently showing that “We are pioneering the future of medical cannabis research, cultivation, processing, and distribution globally, and we intend to become a leader in the adult-use cannabis market in Canada once legalized.” Tilray will join the recent slew of stocks that have come onto these more prestigious exchanges in the hopes finding new pools of investment. The company and publisher of the magazine High Times has also stated that they will be launching an IPO on the NASDAQ later in the year which means there is a lot to look forward to in this growing industry.
Many companies have stated that they are working to expand their businesses into the markets abroad by exporting product and building their brands in those places. This has meant that there is a new influx of capital in the industry that is continuing to drive change in the market. The hopes are high that over the course of the next five or so years, many new companies will begin to take advantage of the legal standing of cannabis in North America. The other hope comes from whether or not the U.S. will decide to move in favor of what the American people want, legalizing cannabis for adult-use or at least decriminalizing it for the near future.
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