These are 4 pot companies to invest in
With Canada’s recent legalization of marijuana for recreational use by adults, savvy investors are refocusing their attention on this fast-growing industry.
Consumers are expected to spend as much as $57 billion dollars per year on legal marijuana by 2027, according to research conducted by Arcview Market Research and BDS Analytics. Recreational use is expected to account for 67 percent of this, with medicinal use accounting for the remaining 33 percent.
Given such a large future market, here are four of the largest marijuana companies, based on market capitalization, that investors looking to benefit from this growing industry may want to keep an eye on.
1. Canopy Growth Corporation:
Valued at $11.14 billion, Canopy Growth Corp. is currently the world's largest marijuana company. Though well known for providing medicinal marijuana products, industry experts believe that it is well-poised to take advantage of the growing recreational market.
2. Tilray:
Coming in a close second with a market capitalization of $10.71 billion is Canadian pharmaceuticals company Tilray Inc. The company made headlines in July when it made its Nasdaq debut, making it the first marijuana company to go public in the U.S.
3. Aurora Cannabis:
Aurora Cannabis, another Canadian company, is valued at $10.06 billion. Though previously traded on the Toronto Stock Exchange, Aurora recently made its U.S. debut on the New York Stock Exchange.
4. GW Pharmaceuticals:
Though the England-based GW Pharmaceuticals is only valued at $4.03 billion, it has a large upside. In June, the company received approval from the U.S. Food and Drug Administration for its drug Epidiolex, making it the first marijuana-derived drug to be approved by the government.