The rapidly expanding global cannabis market is on deck to be worth an estimated $32 billion in 2020 according to analysts with the Arcview Group, a jump of 230% from the paltry $9.5 billion in 2017. This has led to a so-called “green rush” reminiscent of the Dot Com boom of the late 90s, with thousands – if not millions – of people looking to get in while the getting's good.
Many cannabis-related companies are already trading on various stock exchanges with more going public every day; however, due to the fact that the plant remains illegal on the federal level in the US, many of the companies that touch the plant (cultivators, processors, or retailers) are trading in Canada, making things a bit more complicated for American investors. So, which pot stocks are getting the most interest?
- The Cronos Group (NASDAQ:CRON) – This Toronto-based licensed producer (“LP”) owns several cannabis brands and recently secured a distribution agreement putting their products in over 12,000 pharmacies across Germany. The Cronos Group is notable because it was the first Canadian marijuana stock to list on the NASDAQ. Their partnership with American cannabis retailer MedMen has put Cronos in an interesting position of power at the dawn of legal sales in North America and beyond.
- Canopy Growth (NYSE:CGC) – One of the largest cannabis companies in the world, Canopy Growth has garnered immense publicity due to its several high-profile deals including the 2017 sale of nearly 10 percent worth of stock to US-based alcohol distributor Constellation Brands, best known for Corona and SVEDKA vodka. The Canadian LP recently acquired rival Hiku Brands in a $205 million dollar deal, beating out fellow behemoth WeedMD in the bidding process.
- Terra Tech Corp. (OTCQX:TRTC) – Terra Tech is a California-based vertically-integrated agriculture business focused on sustainable practices in the cultivation of cannabis and other crops. Best known for the Blum and Medipharm brands, the company operates in several states and has been experiencing exponential growth over the last two years.
- Aurora Cannabis (OTC:ACBFF) – The largest pot company in Canada, Aurora Cannabis has a value of nearly $7 billion dollars, thanks in part to a number of high-profile acquisitions including that of rival MedReleaf in January for a cool CAD $1.1 billion. Aurora is on track to produce nearly 570,000 kilograms of cannabis annually throughout its nine facilities in Canada and two in Denmark and recently announced plans to develop cannabis-infused skin care and cosmetic products through a partnership with Evio Beauty.
- Tilray (NASDAQ:TLRY) – While not officially trading yet, Tilray recently announced their initial public offering (IPO) in early July and will join Cronos as the only pot producer on the NASDAQ. What makes this offering unique is the fact that the company will be the first cannabis producer to raise capital through the exchange. Investor’s Business Daily noted that Tilray said it would offer 9 million shares with an expected price range at $14 to $16 a share. The company serves Canada and parts of Latin America, Europe, Africa, Australia, and New Zealand.
David Kani is an Orange County litigation lawyer and co-founder of Hochfelson & Kani, LLP. Kani’s first book Pot Inc. - An Entrepreneur's Guide to the Marijuana Industry is set for late 2018. To book or learn more, contact [hidden email].