According to Bloomberg’s article published in its site on April 20, 2017, the cannabic business is beginning to soar in stock markets in both the US and in Canada.
Today, of the twenty eight US states with approved medical marijuana programs, eight (Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon and Washington) have legalized marijuana for recreational use. Medical marijuana is already allowed throughout Canada, and it will have legalized recreational use by July 1, 2018.
According to Bloomberg: “the market capitalization of the stocks in the Bloomberg Intelligence Global Cannabis Competitive Peers Index—an equally weighted index of 54 stocks with significant exposure to cannabis-related operations—tripled since the start of 2015.”
Pharmaceuticals will reach a record number of M&A deals, driven largely by companies eager for more supply or products. “This year, for example, Canopy Growth Corp., itself a producer of medical marijuana, completed a $267 million acquisition of Mettrum Health Corp., an agri-pharmaceutical company focused on the research, development, production and distribution of medical cannabis products.”
Legal U.S. marijuana sales are expected to reach C$5.7 billion this year and Canadian retail sales forecast at C$6 billion ($4.4 billion USD) by 2021.
On April 5, the world’s first pot Exchange Traded Fund (ETF) was launched, making it easier to invest in the industry. The Canadian-domiciled Horizons Medical Marijuana Life Sciences ETF holds small U.S. and Canadian companies with an average market cap of $500 million. Five days after its launch, the ETF was up 16 percent.
Many stocks in the index have been standouts. Among the best: a Canadian, a U.S. and an Australian stock. InMed Pharmaceuticals, based in Vancouver, was up 257 percent as of April 19; it specializes in the research and development of cannabinoid-based therapies. Cannabics Pharmaceuticals, a U.S. company whose R&D is based in Israel, works on personalized anti-cancer and palliative treatments. It was up 220 percent. And MMJ PhytoTech, the first Australian-based company to receive a Canadian medicinal cannabis cultivation license, has returned 173 percent.
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