Cannabis Stocks Soar in Canada

It looks like Canada will become the first G7 nation to legalize recreational cannabis. As a result, the Canadian stock market is poised for a substantial spike this spring when Canadian Prime Minister, Justin Trudeau, plans to implement the new legislation.

Cannabis is quickly becoming the “it” stock to invest in. While initial investments have been tricky due to what feels like perpetual negotiations regarding laws and restrictions, the cannabis stock is still considered to be the most promising investment for turning a profit.

Nothing encompasses this sentiment more than Canadian cannabis holding company, Canopy Growth. Located in Smiths Falls, Ontario, Canopy Growth one of the largest legal cannabis producers in the world.

Medical marijuana has been legal in Canada since 2001, but few other Canadian-based companies have reached the same level of reputation. Canopy Growth began trading in the Toronto Stock Market in July 2016 under the ticker CGC. Since then the company has seen variable fluctuations due to the fickle nature of the cannabis industry. Just one year ago, the stock was priced at a modest $2 a share, from there the price skyrocketed to $17 a share last November, due to the U.S. election and Trudeau’s statements, before settling back to $12 a share just this month. Now trading under the ticker, WEED, Canopy Growth is valued $943 million making it the first marijuana business to achieve “unicorn” status, a term coined for a start-up company valued at over $1 billion.

Although Canopy Growth is the most successful example of rising cannabis stocks in the northern country, there’s no doubt that there will soon be more competitors rising in Canada. If and when Canada legalizes recreational cannabis, as well as every other cannabis stock, residents can look forward to yet another significant spike, as the opportunity to capitalize on the Canadian cannabis market gets bigger.

With 28 states legalizing cannabis in some form, the U.S. markets are still emerging. And while the U.S. still has a lot of catch up to play in regards to the cannabis market, looking toward Canada gives the U.S. something to strive for.