North America is flush with green these days, especially when it comes to the kind you smoke and the money associated with it. With recreational marijuana legalization spreading across the States and Canada, cannabis stocks are a promising investment as the industry is just getting underway.
Canada has had legal medical marijuana since 2000, when it was enacted into law, but, now with recreational marijuana sales set to start in July of 2018, marijuana stocks of Canadian companies are looking like solid investments, both for short and long-term strategies.
3 High-Potential Weed Stocks for Canadian Marijuana Companies
Canada is joining many of the states to its South in legalizing adult use of recreational cannabis. The bill leaves regulation and sales up to the individual provinces and territories, which could cause some slow-down for up and coming companies.
Aurora Cannabis Stocks (OTCQX:ACBFF)
Aurora Cannabis, Inc. is one of the largest Canadian medical marijuana manufactures and is poised to have some large gains if they play their cards right. Pot stocks have quadrupled since legalization was established last fall.
Aurora has a solid $249 million in the bank, with only $60 million in debt. They announced earlier this month that they secured another $200 million through a group of underwriters. That puts the company’s holdings at nearly half a billion – not a bad way to enter one of the largest recreational marijuana markets in North America!
Additionally, ACI has secured status as an EU-wide public tender, which they will use to supply cannabis to the Italian medical marijuana market.
Emerald Health Therapeutics (OTCQX:EMHTF) MMJ Stocks
Another big player in pot stocks, EHT, has laid out some very interesting long-term plans. Together with their partner Village Farms, they have in the works a facility that will have over 1 MILLION sq/ft of grow space.
The company is aiming to produce around 100,000 pounds of product a year by 2020. Definitely the long play here, once complete, the new greenhouse will be capable of producing over half a million pounds of marijuana annually.
Financially, they look promising. With zero debt and $38M in funds, $15M produced during January of 2018 alone, Emerald Health will certainly be a weed stock to watch through out year.
MedReleaf Corp (OTCPK:MEDFF) MMJ Stocks
MedReleaf Corp is another top weed stock in Canada currently traded on the US market. They currently have 18% of the market share in the medical industry in Canada and it looks like they have similar ideas for the recreational industry.
Though MedReleaf is smaller than Aurora Cannabis, it has few advantages:
- Their current production cost of $1.46/gram gives them 70% profit margins and indicates industrial efficiency.
- They are in good financial standing with $200M in funding and only $10M in debt.
- They are the only ISO certified marijuana company in Canada, which could give them the ability to charge a premium for their products.
Could delays in legalization hurt cannabis stocks?
There is some doubt as to whether or not adult recreational marijuana sales will actually start this summer or not. Although, Prime Minister Trudeau has confirmed it will not buy July 1st, he has remained consistent about pushing for legalization, but, not at the expense of having not doing it right the first time.
While the momentum is currently in favor of things going smoothly, that doesn’t mean the Canadian government couldn’t add red-tape to the process for marijuana companies looking to grow in the rapidly expanding market. Still, many companies seem quite poised to handle what curve-balls might come their way in the ever-changing and growing cannabis industry.