Investors are craving and anticipating influential marijuana companies that are listed on the stock exchange or are planning to sell their shares via an Initial Public Offering.
This surge may be due to the big day October 17, 2018. October 17th is not only Ziggy Marley’s, son of reggae icon Bob Marley, birthday but also marks the day Canada will legalise recreational marijuana for purchase and consumption to Canadians age 18 and over.
Naturally, there will be limitations to this bill, such as the amount you can possess or grow at home. However, this action represents a shift how weed is perceived as well as an exciting stock market journey, which will lead to further growth and development for the country.
The news of the Great White North’s intentions to legalise cannabis for recreational purposes broadcasted in late June. This resulted in a significant advancement in stock prices for major companies in Canada such as Canopy Growth Corporation [TSE: WEED], Aphria Inc [TSE: APH] and Cronos Group Inc [TSE: CRON]. WEED has increased its stock price by 35%, APH 36% and CRON 52 % since the word began spreading of the legalisation to come.
Canopy Growth Corporation had extended an arm on the New York Stock Exchange [NYSE: CGC] in May 2018. This too popped 15% and is now trading at US$49.09. This increase may also be due to the brewers of Corona, one of the top selling beers in the world, announcing going big with its stake in Canopy Growth Corp. by an additional 4 billion USD!
Undoubtedly a stock to watch.
Aphria Inc has announced that it will be acquiring all ordinary shares of LATAM Holdings Inc, a company owning cannabis licenses and assets in Jamaica, Colombia and Argentina. This will increase the value of Aphria with now a more diversified approach in cultivating the herb internationally.
Marijuana in Jamaica typically known as ‘ganja’ is a popular element of the Rastafarian culture and is legal to be used for religious practices. Ganja has been legalised for medicinal uses in the country and has since many companies emerging and taking up the opportunity to cultivate this intriguing plant. Popular companies such as Kaya Herb House, a tourist attraction for the viewing and partaking of all things ganja as well as Medicanja, medicinal marijuana firm which is planning on going public on the Jamaica Stock Exchange [JSE] very soon.
While investing in cannabis stocks may be attractive to the more aggressive or the lovers of the herb.
A few may question, how long will this “high” last on the overly hyped marijuana industry?
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