The marijuana market has remained incredibly lucrative for those who have chosen to get in over the course of the past several years, but with new legal measures going into place around the world to allow its use, it seems as though this is only the beginning.
One of the most popular ways to invest in the cannabis market is through investing in the individual producers of the plant. The company that has been on many investors minds has been Aurora Cannabis (OTCMKTS:ACBFF). The company recently completed one of the largest acquisitions in the history of the cannabis industry as they chose to purchase the cannabis producer CanniMed. This new partnership will help to cement Aurora’s growth in the near future.
The ancillary industry having to do with cannabis has also been one of the fastest growing parts of the market for some time now, and continues to offer a lower amount of exposure than other stocks in the industry. The company Namaste Technologies (OTCMKTS: NXTTF), which currently has a market cap of around $300 million, is a distributor and producer of many of the popular supplies for cannabis users. The company is a manufacturer of vaporizers, pipes, papers and everything one needs to consume the cannabis plant.
Next on the list is the company Innovative Industrial Properties (NYSE:IIPR). IIPR currently has a market cap of around $270 million which means that they are definitely on the larger side of the industry. The company’s main focus has been on the acquisitions of sites that can be used to produce cannabis. Given that there has become such a large market on producing the cannabis plant, many large companies are unable to find spaces suitable for this type of production. The company works by leasing the properties to state-licensed producers of marijuana, where they then help them to outfit the space so that they can properly grow the plant.
In the pharmaceutical side of the industry, the company GW Pharmaceuticals has been at the top of the market for some time now. GW (NASDAQ:GWPH) recently received an approval for a drug known as Epidiolex, which is the first time that the U.S. Food and Drug Administration has approved a drug containing cannabis compounds. The drug will be used by patients who suffer from Dravet and Lennox-Gastaut Syndrome, with both cause uncontrollable seizures for the patient. The approval of this new drug means that the space can now be opened up to other companies looking to use cannabis to produce their pharmaceutical drugs. GW Pharmaceuticals has been working to transform the entirety of how the cannabis industry in the U.S. works for the coming years.
Cannabis may be an extremely promising industry, but the factor still remains to the federal legislation of the drug. Cannabis is still considered to be a Schedule I narcotic, which means that by the government’s standards, it has the potential for medicinal use as well as a high rate of addiction. Both of these claims have been refuted many times, and continue to be disproven by various medical journals and scientific studies. Over the course of the next few years, new legislation in the industry will help to bring these companies to the full potential that they have to change the market. The hopes are high that laws will begin to be formed in favor of the industry and for what the public would like to see in this nation. Only time will tell how the market will play out over the coming years, but things are looking very positive.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
