Make no mistake the cannabis industry is exploding.
Jefferies financial group has stated the industry has potential to reach $130 billion by 2029.
“This assumes full U.S. federal legalization, full recreational and medical legalization across Europe, full medical and recreational legalization across Latin America, and cannabis distribution in a number of other industries,” noted the analysts - as quoted by Yahoo Finance. “Industries at risk of interruption are pharma, alcohol, health and wellness, pet care and smoking cessation.”
The analysts join a growing number of cannabis investment hopefuls.
Cowen for example, says U.S. cannabis sales alone could reach a whopping $80 billion by 2030 - which equates to an increase of $5 billion from earlier estimates, and a 4% compound annual growth rate. Piper Jaffray concludes the market for legal cannabis could be worth $15 billion to $50 billion a year, with global sales growing from $250 billion to $500 billion.
Ultimately, that can lead to a further upside for stocks that do so, including Blissco Cannabis Corporation (CSE:BLIS) (OTCQB:HSTRF), OrganiGram Holdings Inc. (OTC:GRMF), and CannTrust Holdings Inc. (NYSE:CTST)(TO:TRST).
Blissco Cannabis Corp. (BLIS) (HSTRF), a Canadian wellness cannabis brand based in British Columbia is a multi-licensed processor, cultivator and distributor of choice cannabis, just announced that it earned Depository Trust Company (DTC) eligibility. This makes it easily accessible to U.S. investors.
“We are excited to be DTC eligible; which will allow us to open up tremendous opportunity for investors in the U.S. to participate in our growth,” said Kettlewell, CEO of Blissco. “Blissco is truly beginning to make its mark in domestic and international markets by expanding our global investor base.”
The electronic method of clearing security speeds up the receipt of stock and cash, while accelerating the settlement process for brokers and investors. Companies that are DTC eligible potentially experience higher trading volumes in their stock given the additional accessibility and availability of shares.
Yet another stock to watch for potential listings on a major stock exchange is OrganiGram Holdings (OTC:OGRMF) which sells and produces medical marijuana in Canada. This company is ramping up production to capitalize on new market opportunities as an existing licensed producer. An active development includes 15,000 sq. ft. extract processing facility that could prove quite useful, as the cannabis market progresses.
OrganiGram has also signed a letter of intent to Société québécoise du cannabis. (SQDC). This allows for distribution amongst all ten Canadian provinces.
“OrganiGram’s growth strategy has been focused on building a strong national footprint from the start and building our presence with the Edison Cannabis line nationally,” says OGRMF CEO Greg Engel. “We are honored to work with our partners across the country to help ensure Canadians have access to a reliable supply of premium cannabis products for both medical and adult recreational use. We look forward to continuing to build on these relationships as we look ahead to legalization of cannabis edibles.”
CannTrust Holdings (CTST)(TRST), which produces and distributes pharmaceutical grade cannabis products in Canada have just listed on the NYSE as of February 25, 2019 under the sticker symbol “CTST.”
“CannTrust has securely established itself as a top licensed producer in Canada with a global platform rooted in trust, science and innovation.” CannTrust CEO Peter Aceto said, “A listing on the NYSE is a common step forward in our evolution as we look to broaden our investor base, increase the company’s exposure and expand our business on an international scale.”
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