The cannabis market has been making waves since its popularity began to take over only a few years ago. With new developments in legislation and innovation, it seems as though now is more the time than ever to take a look at the changing cannabis industry.
The only issue that has remained in the cannabis industry is the fact that legislation in the U.S. is still lagging in terms of what the populous would like to see. It is clear that there is a large demand as well as an increasing supply for the cannabis market, which is becoming more and more reflected in the amount of capital flooding in to the industry. Many stocks have come to the forefront of the market because of this, and they are helping to change the paradigm that currently exists in the industry as well.
The first company on the list is Emerald Health Therapeutics (OTC:EMHTF). Emerald Health is one of the large Canadian companies that is working to produce cannabis under a license from Health Canada that not many companies in the industry are able to attain. The company works by selling cannabis oils as well as products made from dried cannabis. The market on these types of oils has become increasingly large over the past few years, and the demand only looks as though it will continue to rise. According to one report “The company is in the process of acquiring the remaining shares of Northern Vine owned by Abattis Bioceuticals Corp. (CSE: ATT) (OTCQB: ATTBF), a Canadian licensed cannabis testing and analysis firm.” After this acquisition, the company will own 100% of Northern, which is another company that is licensed to sell cannabis-related products. Partnerships like this are one of the main driving factors of growth throughout the industry and continue to fuel new innovation in the sector.
Next on the list is a U.S. based company by the name of CLS Holdings USA Inc. (OTC:CLSH). The company just completed their first year of selling recreational cannabis in Nevada and was able to report a large amount of data from what consumers want to buy and what they would like to see entering the shelves. The data shows that around 50% of individuals buy marijuana flower while 25% buy concentrates. The rest of the sales are dispersed between marijuana products and edibles. This data helps to illustrate the growing demand for various types of products in the industry and not just the raw cannabis plant.
Oils as mentioned before, have been able to take up a larger portion of the market share in recent times, and many companies are working to meet this growing demand as we approach the near future. According to one report “the company has big plans to triple their production capacity by the end of 2018 to meet the increased demand in Nevada. Oasis dispensaries commonly have 400 daily visitors and served over 125,000 medical patients during this past year of recreational pot sales. About 20 percent of their total sales are for medical marijuana use, and home deliveries comprise about ten percent of total revenue.”
The cannabis market as a whole is still very much in its infant stages which means that there is a large amount of room to grow as we move toward the future. Only time will tell how this large amount of growth continues to help the market build in terms of innovation and new capital. The hopes are high that these companies can continue to help change the cannabis world.
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