Brief breakdown on some cannabis stocks

Following a request from one of our users, we decided to list some cannabis stocks which are very in demand at the moment.

Cannabis cultivation has grown in importance after Canadian parliament approved the recreational use which will start from next month. The first country to legalize cannabis was Uruguay in 2013 while a number of US states also permit recreational use of this drug. It is also important to note that apart from recreational use, which will surely increase over time, many countries across the world have already legalized medical use of cannabis and therefore this market is posed for even more growth.

Below is some information on these stocks which are traded on major exchanges:

• Tilray Inc

We already mentioned this stock in a previous article when it made the news and is now the largest marijuana stock with a market cap of around $18 billion.

Tilray was founded in 2013 and it became the first cannabis firm to issue an IPO on the NASDAQ exchange last July. Since then, the stock price has massively increased by 690%!

Based in the Vancouver Island town of Nanaimo in Canada, Tilray, according to its website, is dedicated to “cultivating and delivering the benefits of medical cannabis safely and reliably.” Its revenues were just $20 million last year, but because Canada is about to legalize marijuana in October, its business prospects recently have become much more attractive.

 

• Cronos Group Inc (CRON)

The company has a market cap of $2.3bilion and over a 1 year period has seen its stock price rising by 550!.

What is interesting in Cronos is that although it has been founded in Canada, like most of these companies, the firm has several offices/plants across the globe which include agreements with countries like the US, Germany, Poland, Israel and parts of Latin America.

Cronos, like Tilray, is really interested to expand the use of medical cannabis and several deals are currently taking place in order to meet this demand. To this respect, On September 1, Cronos announced that its wholly-owned subsidiary Peace Naturals Project Inc had entered into a supply agreement with Cannamedical Pharma, a pharmaceutical and narcotics wholesaler that is federally licensed for narcotics import. As of September 2017, Cannamedical is the fastest growing cannabis retailer in Europe with a network of 781 pharmacies and expectation to reach 2,500 by the end of the year.

The company was also recently linked for a deal with a beverage firm including Diageo and lastly Coca Cola.

 

• GW Pharmaceuticals (GWPH)

A British biopharmaceutical company, GW is mostly known for its multiple sclerosis treatment products which was the first natural cannabis product to gain approval in any country.

The company has a market cap of $5 billion and over a 1 year period has seen its stock price rising by over 50%.

The company mainly focuses on using cannabis for medical treatments and is therefore considered one of the less volatility stocks as compared to other marijuana investments. GWPH has floated its shares in 2014.

The company has also made history by becoming the first to ever win Food and Drug Administration (FDA) approval for a marijuana plant-based prescription drug, dubbed Epidiolex.

 

• Canopy Growth (CGC)

CGC has around $11 billion market cap and held the title of the largest cannabis stock up until a few days ago. The company gathered more momentum last month when Constellation Brands Inc., the brewer of Corona beer, announced it will spend US$3.8 billion to increase its stake in Canopy Growth Corp.

Over a one-year period, the stock price increased by 500%!

The company was founded in 2014 and much like GWH, had its main focus on medical marijuana but is now expanding into other areas following the deal with Constellation.

 

• Deutsche Cannabis AG

Outside North America, Germany has been at the forefront in the investment on medical marijuana. Deutsche Cannabis is a small firm which has been engaged in this business since 2014.

The firm is the first European company in this industry which has been listed on the stock exchange since 2000.

This might be a good alternative for those who wish to keep a EUR investment without exchanging into USD or CAD.

 

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