The cannabis market has managed to stay incredibly lucrative for some time now, but many investors have seen cannabis as a long-term investment rather than something for the short term. This has meant that there is a growing list of stocks that many investors believe should be held on to for investment returns in the long run rather than for short-term gains. As the market is able to progress through the various stages of legislation and the changing public perception of cannabis, it will be interesting to see which stocks stay relevant in the near future and beyond.
The first company on the list is one that should be quite familiar to anyone in the cannabis industry and that is Aurora Cannabis Inc. (OTC:ACBFF). Aurora has been working with massive plans for expansion which may seem extensive in the short term, but the goal is for long-term growth. The company also recently announced that they will be opening a new facility in Malta which will help to make a statement that they are working to build their infrastructure in the abroad markets and not just domestically. For those who don’t know, Malta is a small island in the Mediterranean that has been playing a very solid strategic role in the growth of the cannabis industry. The location puts Malta at the perfect exposure to take advantage of the growing cannabis market for the years to come.
Next on the list and one that should also come as no surprise is the company Aphria Inc. (TSX:APH). The company recently invested over $50 million into a new extraction center which will help them to continue producing high-grade cannabis extractions and other products for the marijuana sector. The factory will help them to produce new types of extractions at very high rates which will help to in turn, fuel the growing demand for these types of products in the market. Construction of the new facility is already in full swing, and Aphria looks as though they are poised to begin releasing these new products as soon as March of next year. This means that Aphria should be looked at by investors as a long-term investment as well as in the short term. The company has stated that they intend to increase their annual production to a massive 140,000 kilograms which will help to meet the new and growing demand brought on by the growing recreational cannabis market in Canada. After all of their facilities are complete, Aphria will be able to produce as much as 250,000 kilograms of cannabis per year. Canada is scheduled to begin selling recreational cannabis throughout the entirety of the market as soon as September 17th, which means that Aphria is perfectly poised to be in the center of this new and developing part of the market.
The cannabis industry as a whole has been growing with a massive amount of propensity for the future. Many of the projects that are currently being worked at, are aimed at growth for the next ten years or so rather than in the short term. Because of this, many stocks in the industry are said to be held for a long time rather than only a year or so. The only issue that remains is that of legislation, and as the public perception of cannabis begins to change, this seems to be a smaller and smaller issue throughout the whole industry. The hopes are high that companies like Aphria and those mentioned above can continue their fight toward the future.