The legal cannabis market has been booming for some time now, but new legislation in the industry could potentially help to make the market even larger in the near future. The big news as of recent has come out of Canada as laws were recently passed allowing for the use of recreational cannabis nationwide. When this law goes into effect during mid-September, the market is expected to see a massive increase that will hopefully be reflected across the industry. For now, several stocks have seen a large amount of promise for the future.
One of the main stocks that investors have been watching has continued to be Canopy Growth Corporation (NYSE:CGC). Canopy Growth recently acquired the company Hiku Brands, which will help them to diversify their products as well as their investment portfolio. Hiku has a very distinct approach when it comes to retailing cannabis, which could potentially help Canopy to increase their production as well as the amount they can sell, by a substantial amount. Canopy has also been looking beyond just the cannabis industry, as they recently came into an agreement with the company Spectrum Cannabis Columbia. The agreement will help Canopy to expand even further into the Latin American cannabis market, as they currently have business in Columbia, Brazil and Chile. Canopy, as the largest cannabis company in the world, should definitely stay on any investors radar.
Next on the list and another stock that should come as no surprise is the company Aphria Inc. (TSX:APH). Aphria has stated that they have a large amount of interest in the South American market as well, but has also been working to get into the Latin American market in addition to the Caribbean one as well. This large amount of exposure to the world market ensures that any overproduction Aphria comes into, can simply be exported to another country with a large cannabis market. Aphria recently acquired the company Scythian Biosciences Corp., which will help to give them the proper amount of exposure needed to secure there spot in the abroad markets mentioned above. With many companies in the cannabis market working to export their product, it seems as though Aphria is on the cutting edge of the cannabis industry.
Another company that should come as no surprise is Aurora Cannabis Inc. (OTC:ACBFF). Aurora is a big name when it comes to cannabis as they recently made headlines for the largest acquisition in the industries history. Aurora recently acquired the company MedReleaf, in the largest cannabis deal to date, helping to bring Aurora even further to the top of the market. According to one report “They have two production facilities slated to open this year. Aurora Sky, capable of producing 8000 kilograms of cannabis per month, will be harvesting bud at the end of July. And Aurora Vie in Quebec recently earned its license and will harvest cannabis by October.” This massive production amount has helped to benefit the company by being able to supply the fast-growing market within Canada. Aurora has also been looking at the abroad markets to continue securing new business as they produce more and more cannabis domestically.
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. Companies like the ones mentioned above are helping to lead the fight for the cannabis industry, and as the public sentiment changes along with legislation, it seems as though they will continue to succeed.