With pending legalization and the support of the public, marijuana stocks have seen their prices shoot up over the course of the past two or so years. Many new IPOs have also come to light given the friendlier legislation around North America.
One of the biggest changes adding to the growth of the market has been the continuance of mergers and acquisitions throughout the industry. Several large billion dollar mergers have happened in the past year, adding to the growth and the future of the market overall. The main two markets in the world have continued to be the U.S. and Canada although Canada’s legalization of recreational cannabis is approaching faster than ever. Currently, in the U.S., 29 states have put in some sort of legislation for marijuana whether it be recreational or medicinal. With many more states working to come on board with the new laws, the market will likely continue to grow at this unprecedented rate in the coming years.
One of the largest cannabis stocks that the industry has been watching continues to be Canopy Growth Corp. Canopy Growth (NYSE:CGC) recently was listed on the New York Stock Exchange, as the second cannabis company to be listed in the exchange’s history. The IPO from Canopy Growth followed the footsteps of the first IPO coming from the Cronos Group (NASDAQ:CRON). MedMen is another large player in the industry and is currently valued at over $1.5 billion. With a recent IPO in Canada, MedMen looks as though they will continue to grow to the level that some of the larger companies have been working to reach.
MedMen has largely been considered as one of the pioneers in the dispensary area of the market for some time now. Their approach to growth has been through implementing stores that somewhat resemble Apple stores in minimalism and design principles.
The North American market continues to be at the forefront of the massive expansion that is going on throughout the industry. The company Constellation Brands (STZ) recently took a large stake in Canopy Growth, adding to the partnerships that are occurring throughout the market. The founder of MedMen, Andrew Modlin, has stated that “we are marching steadily toward a future where buying and using cannabis products will be just as normal as buying wine or beer.” This statement continues to be exceptionally true as the whole of North America has completely shifted the paradigm in the older taboo of how marijuana has been viewed. The companies listing on the Canadian Securities Exchange comes after a statement showing that this “gives American cannabis companies broader exposure to a global investor audience.”
Another big factor in the industry is the partnership between the U.S. and Canada and the sharing of the market. The two countries have closely been working together, in the U.S. it is more on a state level, but that has not stopped growth at all. Canada and the state of California have been working to grow this partnership at a massive level, helping to continue the growth for the coming years of the industry. The cannabis market is however still very new, which means that there is a lot of room to grow throughout. The only issue standing in the way is that of legislation, but this is quickly changing as Canada is set to legalize recreational cannabis this summer. The changing public sentiment in the U.S. will likely lead to nationwide legalization in the coming future. Only time will tell how the fast paced growth of the market will continue to push it into the future.
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