The industry on cannabis in North America has managed to remain incredibly lucrative over the course of the past five years. With so many new legal moves being put in place, it seems as though the future of the industry is headed in the positive direction.
Debra Borchardt, the CEO of the Green Market Report stated that in regard to the new legalization of recreational cannabis in Canada, “October 17th was set as the first day for recreational sales. Some people in the industry wanted an earlier date, but at least companies can now make plans for a specific date.” This move by Canada has also helped to involve some of the large markets abroad. Many companies in Canada have been working to cement partnerships and acquisitions in foreign markets such as Germany and Jamaica. These partnerships are still some way down the line, but they do present a very positive case for the future of the industry.
Jeff Siegel, managing editor of Green Chip Stocks stated that some stocks “are gong to continue to see a flood of capital coming in… much of which was previously flooding into Canada.” Borchardt continued to state as well that “the other big news was that Tilray filed for an IPO on the NASDAQ. The company reported solid financial numbers, and that will make this a sought-after offering among cannabis investors. Tilray will be a ‘controlled company’ since Privateer Holdings will have the majority voting power.”
In other news, the popular marijuana magazine High Times is now working to crowdfund a campaign that would allow them to go public on the NASDAQ later in the year. The company stated recently that “the company is only weeks away from publicly listing on the NASDAQ, just weeks after organizing America’s first state-sanctioned recreational cannabis event in Sacramento. This is an enormous opportunity for the general populous to buy into the growing green rush, and they’re just getting started.” This hopeful sentiment is very much shared across the board and continues to be the driving factor for growth in the industry and abroad.
The U.S. Marijuana Index did, however, drop by a small amount of around 3% earlier in the week, but this has been attributed to some anxiety surrounding the legalization of recreational cannabis in Canada. Other stocks on the individual level such as certain ETFs managed to grow above 5%, showing a very hopeful sentiment for the future.
The Cronos Group, another big player in the cannabis industry recently announced according to one report that “its subsidiary Cronos Australia was granted a medicinal cannabis Manufacture License by the Australian Office of Drug Control. This license allows the company to manufacture cannabinoid-based products in Australia, extracting, refining, concentrating and transforming the cannabis plant.”
Many companies have been working with the new legislation to help secure a large amount of influx of capital into the industry. This new capital has been helping the market to grow at quite a substantial rate, meaning that the next five or ten years should continue to be exciting for the whole of the industry. The marijuana market as a whole is still very much in its infant stages which means that there is a large amount of room to grow before the industry is able to reach its full potential. With so many investors now coming into the space, only time will tell how large the industry can continue to grow to. The hopes are high that with the combination of a positive public sentiment and positive legislation, the industry can continue to change for the better.
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