Marijuana stocks are the place to be in markets. Volatility is high, but so is growth potential. Recreational marijuana legalization in Canada is moving pot stocks higher, but improving public opinion of pot is helping too.
The biggest publicly traded marijuana stocks
So which are the biggest straight-up pot companies – not companies with a pot division – today? Here are the pot stocks with over $1 Billion market cap and what they’re up to now.
The company recently announced it would raise $400 million through a private debt placement. The debt is for working capital, acquisitions and to repay a $9.1 million existing mortgage.
The market didn’t love this news. The stock fell 5.63% before Thursday’s open due to Tilray stock owners’ worries over dilution. However, Canopy and Aurora both have debt in the market, as all pot companies scramble to acquire and grow. Moreover, Tilray’s IPO prospectus said it would be looking for funding in the near future.
Holders may also be getting a little greedy, and feeling that $10 million in revenue wasn’t a home run this quarter. That number, however, is double from last year and beat Wall Street expectations.
Canopy Growth Corp:
Canopy Growth Corp. (NYSE:CGC). (TSE:WEED) has 14.24 billion in market cap, and has been the industry leader. Investment and positive commentary from Constellation Brands have pushed Canopy’s stock up, for sure.
But Canopy Growth has strong distribution channels ahead of legalization in Canada, too. It also has bricks and mortar cannabis outlets, online sales, and the best-known brand in Canada in Tweed.
Canopy Growth has also expanded to foreign markets with legal medical cannabis. All these attributes make it the envy of other cannabis companies.
Aurora Cannabis (NASDAQOTH:ACBFF), with 11.63 billion market cap, was in the number 2 spot market cap-wise for many months. The company’s acquisitions – CanniMed, MedReleaf, Anandia Laboratories, Pedanios GmbH — were big news in the sector this year. The western Canada-based company seems to be hoping to beat competitors in all aspects of the industry before legalization there. By the end of 2018 it will grow 150,000 kg of cannabis a year.
The cannabinoid-based drug company’s market cap is $3.9 billion. GW Pharmaceuticals (NASDAQ:GWPH) has a lot of promise due to its drug Epidiolex, That drug has been shown to significantly reduce seizures.
It recently announced it will issue $300 million in U.S. depository shares after the USDEA took its cannabidiol ingredient off the most restrictive class of controlled substances. Goldman Sachs, Morgan Stanley, J.P. Morgan and Cowen and Co. are running the book on the offering.
Aphria (NASDAQOTH:APHQF) one more Canadian-based producer boasting $3.8 billion in valuation. It acquired new international channels with its Nuvera purchase a few months back. Although its most recent quarter missed earnings estimates, possible NYSE listing has boosted the stock. It also recently announced acquisition of all outstanding shares in Scythian Biosciences Corp. (CSE:SCYB), indicating that it will continue to target Latin America for growth.