Cannabis stocks have been going through the roof since the maker of Mexico’s Corona brand — one of the top-selling beers in the world — upped its investment in Canadian cannabis company Canopy Growth by $4 billion.
An Ontario-based medical marijuana company, Canopy Growth has seen its stock surge 30 percent since the deal was announced last week, CNN reported.
Canada-based medical marijuana companies Cronos Group and Tilray also saw stocks rise 40 percent and 60 percent respectively in the last week or so.
Investors are betting that Corona may eventually launch cannabis-based beverages and other products. Infused drinks are not expected to be for sale in the U.S., where cannabis continues to be prohibited by the federal government.
Recreational use of cannabis is legal in Canada with sales set to start on Oct. 17. U.S. Canada’s regulations let U.S. companies list on Canada’s securities exchanges. Investors and marijuana companies have responded enthusiastically.
Happy Canada day everyone! This is the last one until prohibition ends!
— Cannabis Canada (@Cannabis_Canada) July 1, 2018
Another significant step toward ending a failed prohibition; regulations will be placed in the gazette on July 11th, 2018 and will come into force on October 17th, 2018.
— Cannabis Canada (@Cannabis_Canada) June 27, 2018
It’s been too easy for our kids to get marijuana – and for criminals to reap the profits. Today, we change that. Our plan to legalize & regulate marijuana just passed the Senate. #PromiseKept
— Justin Trudeau (@JustinTrudeau) June 20, 2018
Everyone deserves the same rights & opportunities in life no matter who they love or how they identify. Today on #IDAHOTB, and every day, we stand together against stigma, persecution, and discrimination. https://t.co/zDkeFs6SQh pic.twitter.com/3iIypliSXI
— Justin Trudeau (@JustinTrudeau) May 17, 2018
“It’s a really exciting time as an investor,” said Jason Spatafora, a Miami-based trader and investor who co-founded Marijuanastocks.com, according to a US News report. “Weed is to Canada what Silicon Valley is to the U.S. We will see a lot more money flowing in.”
Thirty U.S. states plus Washington, D.C. now allow medical marijuana as of July 28. Nine of them plus D.C. have legalized recreational use. In June, Oklahoma voters approved medical marijuana, “further evidence of the eroding opposition even in conservative states,” PBS reported:
“The Canadian Securities Exchange is quickly becoming the go-to place for U.S. cannabis companies orphaned by their own stock exchanges because the U.S. government still considers marijuana an illegal drug.”
U.S. Attorney General Jeff Sessions has been a vocal critic of legalized marijuana, helping create uncertainty for investors and banks.
“U.S. companies need quick access to money to snap up limited production and retail licenses so they can quickly establish themselves in new markets,” PBS reported. “U.S. stock exchanges will not list companies that do business where marijuana is illegal, but several Canadian companies trade in the U.S. because their business is legal in the country where they are based.”
The Green Organic Dutchman, an organic cannabis producer, began trading in May on the Toronto Stock Exchange and raised $101 million U.S. from its IPO, according to US News.
Chicago-based Green Thumb took over a publicly traded Canadian company and went public. It raised $67 million U.S. which will allow it to get licenses in new states and open more retail stores across America.
Acreage Holdings, one of the largest vertically integrated cannabis companies in the U.S., said Monday it will list on the Canadian Securities Exchange this year because it’s become the “exchange of choice for U.S. companies like ours.”
The company secured a $119-million Series E funding round in preparation for its upcoming public listing, according to a press release. This represents the largest private funding raise in U.S. cannabis history, the company said.
