Cannabis Firms Soar Amid Nearing Timetable on Legalization
Cannabis companies continue to post gains in the early days of June as investors become more confident that the use and sale of cannabis will be legalized in more American states soon.
For one, the state of Massachusetts is slated to embrace next month adult consumer use of cannabis while Michigan is also expected to soon legalize the plant by ballot initiative.
Meanwhile, several states in the U.S. have been adjusting their medical programs to accommodate the new policy should it be implemented. The domestic medical cannabis market alone is estimated to be valued at $19.48 billion by 2024, the Hexa Research said. Symptoms and conditions that may be treated with cannabis products include cancer, HIV, AIDS, Alzheimer's disease, and multiple sclerosis. Chronic pain accounted for 46 percent of the U.S. cannabis medical market share in 2016.
Although the U.S. is facing minor struggles with regards to legalization, it’s good to know that its neighbor up north has already taken major steps. Earlier this month, Canada fully legalized recreational marijuana, making it the first G7 country to do so. Legal dispensaries are expected to pop up by Oct. 17 this year. With that, Canada has become one of the spearheaders for the worldwide cannabis legalization.
Here are some firms that are at the peak of the worldwide cannabis legalization trend’s momentum:
1. Green Thumb Industries
A few weeks after going public at the Canadian Stock Exchange, Chicago-based Green Thumb Industries, which was listed as GTI, opened higher than its offering at CA$7.75 and finished the week already nearly 25 percent higher.
The success of GTI was an opposite reaction from how California-based MedMen Enterprises was received. Although both recently debuted in the Canadian Stock Exchange, GTI was more embraced by money managers due to MedMen’s overvaluation, according to Forbes.
2. iAnthus Capital
The firm showed a robust performance during the week—soaring to a record CA$7.55 and finishing 16 percent higher week-on-week.
iAnthus Capital is a New York-based legal cannabis company that is geared toward making regional leaders out of vertically integrated cannabis operating firms.
“We think that the valuations the market is awarding these new issues is generating some interest among investors in the broader space,” the New Cannabis Ventures said. It added that its evaluation does not only apply to iAnthus but to others as well. These include CannaRoyalty, Liberty Health Sciences, MPX Bioceutical and TerraTech.
3. PotNetwork Holdings, Inc.
PotNetwork Holdings, Inc. (OTCMKTS:POTN) is rewarding its investors big-time that you cannot neglect including them in this list—especially now that it recently announced preparing compliance documents that would signal them as a fully-reporting Securities and Exchange Commission firm. The move, eyed to be effective by end-June, intends to provide a greater transparency of its financials, which have recently been getting a boost.
A producer of premium quality CBD products through its unit Diamond CBD, Inc., the firm reported that its online sales in May were pegged at $669,000, jumping 639 percent from May 2017-levels.
Diamond CBD manufactures a wide array of CBD products, including edibles, gummies, oils, tinctures, and vape liquids, among others. Its products are being sold across all U.S. states where they are legal.
Big things lie ahead for investors in POTN’s stock. Just recently, the company announced that they are preparing a Form 10 to be submitted to the Securities and Exchange Commission not later than June 30. Once the form has been filed, POTN will be a fully-affiliated company to the SEC.
This recent announcement should excite investors as it will further increase the visibility and credibility of POTN. They should rest easy knowing that their investments will be at the hands of a company that is willing to go through regulatory processes for its clients. POTN is also looking to make a stronger presence in the financial market considering that it had a revenue of $14.49 million and gross profits of $5,180,865 in 2017.
Indeed, investors have long been penciling in the legalization of cannabis. But developments—whether on a state scale or the Trump administration’s expressed approval for the crop—have been emerging on an everyday basis that everyone cannot deny that the wider acceptance of cannabis will bear more fruits for related businesses.