The marijuana stock market has seen a large amount of increase in terms of value and popularity in the past several years. Although flower has remained at the center of the market for obvious reasons, the industry on oils has come into play more so than ever in the current industry. Many stocks in the industry have also been focused on producing the highest quality oils that they can for the future of the cannabis market.
One of the best parts about cannabis oil is the fact that the dosing can be better given to a patient. With raw cannabis, it is often difficult to tell what the dosage is because of the individuality of each plant. The only true way to do this is through extensive testing on the plant itself, but this can also vary based on where it was grown and the certain conditions. With oil, the process is extremely scientific as far as legal retailing goes. With most oils, the companies are required to label their product extensively, which gives the customer a larger amount of information on what they are taking. The other positive with oils is the fact that they are quite easy to use and it does not take a lot to get medicated.
With that, there are several stocks in the market that have been performing well in part due to their sale of oils in the space. One of the most popular of these stocks, and in the weed market in general, continues to be Aurora Cannabis (TSX:ACB). After their recent acquisition of CanniMed back in March, Aurora has amped up their production of cannabis to over 250,000 kg per year. Aurora has been using their extensive network of cannabis growth to help produce more and more oils for patients. Aurora recently began selling ingestible oils known as Aurora Drops. The company has seen how important oils are in the space and thus is spending a large amount of their profit on researching and producing new types of oils. According to Aurora, their facilities will be able to produce as much as 720,000 liters of cannabis oil, which makes them the top producer of the substance throughout the market.
Another one of the large companies working on the sale of cannabis oils is MedReleaf (TSX:LEAF). MedReleaf back in 2016 reportedly held on to 44.5% of the oil market in Canada, which is quite substantial. For the third quarter of this year, MedReleaf has posted a $2.3 million sales amount for just extracts. Although this does not seem like a lot, oils are much more concentrated and thus users can buy less than they would with traditional cannabis.
Last on the list is the company known as the Cronos Group (NASDAQ:CRON). Cronos came to fame when becoming the first cannabis company to be listed on the NASDAQ back in 2017. With their oil production at around 21% of their domestic sales towards the end of 2017, it seems as though they have been working to up this amount and their production. Cronos is also working to expand quite rapidly throughout the rest of this year with a series of new acquisitions and investments from across the board.
The cannabis market is however very much still in its infant stages which means that there is a large amount of room to grow for new businesses. As the space increases in size, the hopes are high that the sales of cannabis oils will continue to fuel the strong demand throughout the cannabis market this year.
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