back to top

4 Cannabis Stocks To Watch Out For After Canada’s Recreational Marijuana Legalization

The cannabis industry is in for some major changes as it recently secured one of its biggest markets to date with Canada following its legalization of recreational marijuana.

Posted on
Thought Catalog / Via

In time, we can expect cannabis-based companies on and off the country to experience substantial growth as the industry sees more open-mindedness coming from various corners. And here are some stocks investors should keep an eye moving forward.

Canopy Growth Corporation

Outco California / Via

Canopy Growth Corporation (NYSE:CGC) has a unique take on the cannabis industry. While others would focus on the research and distribution of products, Canopy chooses to apply for patents related to cannabis. This business structure is ideal as more cannabis companies are set to emerge now that Canada has legalized recreational marijuana.

The company’s sales had a bit of a slow start in the 2018 fiscal year. However, Canopy has shown significant improvements since then, and aside from its current count of 40 patents, the company is also applying for more.

OrganiGram Holdings

Kelly Sikkema / Via

OrganiGram Holdings (OTCMKTS:OGRMF) has been busy as of late. The company recently decided to expand its production line in its Moncton facility in New Brunswick, per The Motley Fool. Instead of establishing more facilities, OrganiGram chooses to focus on improving the said complex, which results in high production rates.

Its Moncton establishment is expected to span 480,000 square feet once it becomes complete by April 2020. This is expected to yield 113,000 kilograms of cannabis annually. OrganiGram is expected to be one of the top producers once it finishes touching up the facility, so now would be the best time to buy its stock.

Cronos Group, Inc.

Shane Rounce / Via

Cronos Group, Inc. (NASDAQ:CRON) is a key player in the production of medical marijuana. The company has a stronghold on the market currently. Canada’s recent developments with regards to recreational marijuana could also pose a few benefits to its medical variant. As governing bodies become more open to the use of the previously taboo recreational marijuana, others might see medical marijuana in a better light as well.

The company’s $2.9 million sales in 2017 results in a 473 percent year-over-year increase. The company’s market cap remains pretty high at $4.24 billion, so its stock price could reach even higher amounts in the future.

PotNetwork Holdings, Inc.

Outco California / Via

PotNetwork Holdings, Inc. (OTCMKTS:POTN) has been the certified leader when it comes to the research and development of CBD products. The company has secured itself a solid supply chain with the help of its wholly owned subsidiary, Diamond CBD, Inc. With high-quality products at its disposal, POTN is in for some major growth now that the acceptance toward cannabis has significantly improved.

POTN has displayed a tremendous streak of record-breaking sales revenue courtesy of Diamond CBD. The distributor was able to accrue $14.49 million in 2017, while its gross profits were at $5,180,865. The company has showcased a progressive market performance in the first half of 2018, so they are preparing for what’s to come.

In a recent press release, POTN announced that it will file a Form 10 to the Securities and Exchange Commission not later than June 30. With that, the company will be a fully reporting company to the SEC. This will further increase the company’s transparency to its current investors, and it has opened itself to a larger pool of credible investors as well.

It could be the perfect time to invest in marijuana-related stocks as the industry has already braced itself to reach its peak soon. Now that cannabis legalization has bagged its first G7 country, it might only be a matter of time before other countries begin having a more open conversation about marijuana.

This post was created by a member of BuzzFeed Community, where anyone can post awesome lists and creations. Learn more or post your buzz!