Although marijuana has been used worldwide for centuries, its use was relegated to secrecy in the United States during the 20th century. Now, attitudes are changing. With evidence growing to support the benefits of marijuana products, more states are legalizing marijuana. Currently, about half the states in the US have legalized marijuana in some capacity. But consumers aren't the only ones celebrating. Investors are eyeing the tremendous business opportunities, and they have high hopes for the future.Promising Trends
So far, marijuana's legalization has opened the door for business growth. As states are increasingly relaxing their laws to permit medical and recreational marijuana, we're hearing of companies springing up left and right to meet consumer demand. Phrases like “marijuana stocks,” “marijuana mergers,” “cannabis company acquisitions,” and “marijuana IPOs” are increasingly common. Since Canada was the first industrialized nation in the world to legalize marijuana, there are naturally more companies based there than in the United States. This is predicted to be the case as the US market continues to evolve. American companies are also still contending with an uncertain political climate, as debate continues about whether to control marijuana at the state or federal levels. Nevertheless, marijuana-based companies continue to emerge, and they're also going public.Growth in Numbers
In 2017, global spending on (legal) marijuana was about $9.5 billion. By 2022, spending on marijuana is expected to increase to $32 billion. That's more than a 200% growth. About $23 billion worth of spending is expected to come from the US in the coming decade. The increasing demand for marijuana products, along with the potential for significant business growth, is likely to compel more states to legalize marijuana. This will create more stability and confidence in the US market.Where are the Stocks?
Currently, there are three places where we can find public marijuana stocks:
Both the NYSE and the NASDAQ are American stock exchanges with established company names. They are the largest stock markets with a collective worth of about $32 trillion. The NYSE is an auction market, while the NASDAQ is a market designed for dealers. In 2018, both markets saw the arrival of their first cannabis companies. For NASDAQ, it was Cronos Group. Canopy Growth Corp. was the first marijuana company to appear on the NYSE.
OTC markets are short for “over-the-counter” markets. They are decentralized markets that do not have an established physical location. Essentially, they're less formal than traditional stock markets. OTC markets are characterized by a buyer-to-buyer framework. Public marijuana companies currently on OTC markets include Delta 9 Cannabis Inc. and The Supreme Cannabis Company, which is a Canadian company. Both companies joined in 2018.Public Marijuana Companies
The list of public marijuana companies is expected to grow over the coming years. However, these companies have already gone public. As of now, they have the strongest stocks.
These companies have diverse roles in the marijuana industry. Many are medical and pharmaceutical companies dedicated to the research, production, and distribution of marijuana-based medicines and treatments for various ailments. Others are consulting companies that offer services such as legal protection and protection of financial assets. There are also lifestyle companies that produce CBD-based and hemp-based products for personal use. The list of public marijuana companies also includes brands that produce equipment and supplies needed to conduct indoor growing operations. Some companies distribute their products to domestic consumers. Others operate on a global scale.Canopy Growth Corp
Canopy Growth Corp is one of the pioneering marijuana companies on the stock market. This company is a Canadian marijuana company established in Ontario. As of 2017, its revenue was reported at $40 million CAD. The company owns several subsidiaries, including Canopy Health Innovations and Tokyo Smoke. Canopy Health Innovations is a bio-pharmaceutical company that develops and distributes cannabis-based products to alleviate pain and improve quality of life for people worldwide.Cronos Group
Cronos Group is another Canadian cannabis company. Cronos, which trades on the NASDAQ, is a pharmaceutical company dedicated to researching and developing products to improve the lives and reduce pain levels of patients suffering from various ailments and conditions. Cronos Group has the dual mission of producing medical marijuana products and raising awareness (while eliminating the stigma) of marijuana's benefits in a medical capacity.Supreme Cannabis Company
The Supreme Cannabis Company is headquartered in Toronto. It was founded in 1979, and is one of the oldest public marijuana companies in North America. Supreme Cannabis Company's mission is to grow cannabis in a sustainable fashion. It is also a pharmaceutical company that's dedicated to producing and distributing medical marijuana products to companies and consumers around the world. The company works closely with several partners to broaden its reach and ensure its success. This approach makes it a good bet for people wanting to put their money on a public cannabis company.
There are hundreds of cannabis companies currently in operation. Some have already gone public, and that trend is expected to continue in the coming years. While we don't yet know what the regulatory framework and the legal status of marijuana will be in the next decade, we do know that consumer support, along with the tremendous potential for business growth, is fueling a demand for marijuana products. As regulations become increasingly favorable, more US cannabis companies are expected to go public.