The cannabis market has been fueled by a large amount of new investments and capital that have led to the increase of market value substantially over the course of the past few years. With new regulations going into place around the world to allow the use of cannabis, it seems that the future will continue to be ripe with new opportunities. The introduction of recreational cannabis in Canada has been one of the largest pieces of news to hit the market in several years, and because of it, many companies have soared to the front of the market.
The company Canopy Growth Corp. (NYSE:CGC) has been in the news for some time now as it recently made the largest deal in the cannabis world. The company recently completed through a bought deal stock offering, an almost $4 billion deal with the company Constellation Brands (NYSE:STZ). The partnership between the two has been hailed to be one of the most important in the history of the cannabis market and has brought on a new wave of big alcohol producers and distributors into the cannabis industry. Many of these large distributors have stated their interest in producing cannabis-infused drinks for sale within legal markets, and as alcohol sales are on the decline, it seems as though this could be the right move. Canopy continues to be one of the largest producers of cannabis in all of Canada, and is one of the main strongholds in the cannabis market as of now.
The Cronos Group (NASDAQ:CRON) has been hailed to be one of the other big guys in the cannabis market as they produce large quantities of the raw cannabis plant. The company received a large amount of notoriety as well when they became the first Canadian LP to be listed on a major and prestigious U.S. stock exchange. According to one report “this listing status has attracted traders in the U.S. who have avoided the sector, which trades primarily on the Toronto Stock Exchange or junior exchanges in Canada, with OTC listings as well.” Many traders in the industry have avoided cannabis stocks up until the past few months as they have seen them as illegitimate or under the radar. With the new listings on big exchanges such as the NASDAQ and NYSE, it seems as that many institutional investors have gotten ready to join the space. The Cronos Group has also been working to gain new partners in the industry, but for now remains one of the largest growers of medicinal cannabis in the world.
The last one of the big three is the company Tilray (NASDAQ:TLRY). Tilray also became one of the big names in the industry once their listing on the NASDAQ was released, and since has become one of the stocks to watch in the growing cannabis market. The company has been looked at recently by the alcohol producer and distributor Diageo, for similar reasons as the other two. This has means that according to one report “Tilray traded more than 100% of its float on Thursday, as the only shares that can trade are the those that were sold in the IPO.” There has been a large amount of demand for cannabis stocks and given that Tilray has been at the top of the market for some time now, it seems to be a large part of this.
All in all, the cannabis market has continued to be extremely interesting to investors across the board. The hopes are high that over the course of the next few months to years, the maturation of the marijuana industry can continue to bring in new investors to help grow the market for the future.