It seems, as of late, there is a plethora of marijuana stocks popping up that are selling both medical and recreational pot. We are going to take a look at some mergers and acquisitions, dispensary data analytics and upcoming marijuana IPO’s to see what are the best marijuana stocks to watch and buy this year.
As legalization of marijuana spreads across the US states and Canada, investors interest in the “growing” industry continues to rise. As major marijuana players are chipping away at legal barriers, like the US federal governments current stance that marijuana is an illegal and dangerous substance which keeps its status, on the federal level, as illegal. Yet still, individual states are self governing and moving forward in making their own marijuana laws. It all becomes a bit confusing and sticky and continues to remain a battle for marijuana companies trying to move forward and succeed in the industry.
At this moment there are 9 states, including Washington DC, who have legalized recreational marijuana, while there are 29 states that have legalized medical marijuana. Its only a matter of time before legalization becomes the reality in the US.
IPO Watch: Marijuana Stocks
In May, Canopy Growth Corp, (CGC 34,82 -0,26 -0,74%) a Canadian pot producer, began trading on the New York Stock Exchange. The Canopy IPO was followed by the debut of Cronos Group (CRON 13,99 +0,07 +0,50%) on the Nasdaq in February. Also MedMen, a US company who is valued at $1.65 billion had its IPO debut in May in Canada. Yet the industry still remains volatile and inconsistent and confusing regulations are making expansion in the industry arduous.
How Much Money the Marijuana Industry Could Raise in 2018
Through the first half of 2018 marijuana company fundraising more than tripled from that of a year ago. A lot of that probably as a result of full legalization in Canada. Through the end of last month marijuana businesses raised $4.3 billion, which is no small number.
The cannabis industry is on track to bring in $8 billion by the end of the year, more then doubling the $3.5 billion it made in 2017.
Both public and private marijuana companies have raised a combined total of $3.18 billion in equity and $1.1 billion in debt.
Overall, cultivation and retail outfits lead the pack as they rake in more than $2.5 billion.
One of the most noteworthy recent fundraising efforts came from marijuana producer Acreage Holdings said they have raised $119 million this month, an amount that is believed to be the largest ever for the cannabis industry.
Legal recreational marijuana sales began in Canada will begin on Oct 17th. Marijuana companies in Canada are finding themselves in a race to consolidate and bring in more shareholders before that date.
Meanwhile in the US President Donald Trump said he would “probably” back a bipartisan bill that would keep the federal government from meddling in states individual efforts to create their own marijuana policies.
Cannabis company Acreage’s President George Allen, in an interview stated that his company was content to confine their operations to the U.S.. Rather than moving into the Canadian market, as many others have due to the current red tape associated with the US federal laws.
Allen said in an interview, “If you go to Canada, you’re going to be competing with folks that have been raising piles of capital at a fundamentally different price point than our capital.”
Marijuana Stocks Remain Mixed
Acreage also has plans to take their company public in Canada on the Canadian Securities Exchange this fall through a reverse takeover deal.
Meanwhile, LivWell, the marijuana company that has the rights to Willie Nelson’s marijuana brand also plans on going public in Canada. As well as Dixie Brands, who are based out of Colorado and made a statement earlier this month that they intends to complete a reverse takeover of Academy Exploration to also apply for a listing on the CSE.
MedMen, a giant US marijuana cultivator and retailer began trading on the Canadian Securities Exchange in may.
As many US pot companies are scrambling to seek out Canadian listings, mostly though reverse takeovers, there are also Canadian Marijuana companies that are getting ready to list in the U.S.
Canada’s Cronos Group and Canopy Growth Group got listed on the NYSE and Nasdaq earlier this year.
Tilray (TLRY 41,53 +0,71 +1,74%) a Canadian Marijuana company made groundbreaking history this year as the very first marijuana company to have an IPO on a major US exchange.
Keep and eye on Cronos and Canopy as they are moving up in the market as well as Tilray who started on a major high then experienced a fall and will most likely level out for a while before continuing to grow.