The Canadian cannabis market is undoubtedly one of the largest and fastest growing in the world. With new facilities and companies forming around the country, it seems as though this year could yet again be incredibly fruitful for the market on marijuana in Canada.
The stock market in question is known as the CSE, with several new stocks launching on a subset of this known as the CSE25 Index. The index currently holds 203 companies but is looking to find more to add to the index. The CSE25 has been gaining fame as it holds some of the larger cannabis stocks that deal with the US market as well. This market is unlike the TSX and TSXV which primarily deal not in cannabis-related businesses. The TSX and TSXV have stated warnings against listing cannabis companies that deal with the US given the legal status of the plant in the country. Currently, cannabis is listed as a Schedule I narcotic in the states, meaning that it has no potential for medicinal use and a high rate of addiction. With the legislation changing in the US to closely resemble the facts of marijuana’s positive impact, the hopes are that this will change int he near future.
One company that was recently listed on the CSE25 is known as Namaste Technologies (CSE:N). Namaste offers investors a platform known as NamasteMD, which allows users to buy cannabis-related products from Canadian licensed producers directly. This means that there is no middleman in the way of this legal sale, thus offering customers an easier and cheaper way to get the medicine they need. The CEO of the company, Sean Dollinger recently stated that his company signed a service agreement with the top LPs in the industry, which will help to build their business in the near future. The companies weight on the index is currently at almost 10%, which means that they are still the big fish in a small pond. With hopes to continue growth, Namaste is planning to switch exchanges to the TSXV in the near future.
Next on the list is a company known as TerrAscend (CSE:TER). TER has been working with their subsidiary known as Solace Health to offer new medicinal cannabis products to licensed patients throughout Canada. The company currently has within it two cannabis brands. Those brands are Knuba Naturals and Flaura. Both of the brans have a strong focus on wellness and providing customers with the best cannabis experience they can have. Solace Health also recently received a license to sell dried cannabis within Canada, which will be included in their online platform for sale to the aforementioned licensed patients. The company holds a 8.09% weight on the index currently, representing quite a large amount of the equity of the index.
Last on the list is a company known as Isodiol International (CSE:ISOL). Isodiol is a company that has been working to produce new CBD related consumer products for sale on the market. They currently hold a 6.16% weight on the index which is quite substantial. The company also recently acquired a 20% stake in the company known as Compass Cannabis Clinic, which is a local cannabis retailer operating out of British Columbia. The company stated that “under the terms of this acquisition, Isodiol will have exclusive CBD distribution rights for its family of brands through the Compass distribution network.”
The industry on cannabis in Canada is continuing to grow at a very fast pace. With new investors and entrepreneurs coming into the space on a regular basis, the future of cannabis continues to look bright.
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