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From Canada to Germany, the legal cannabis market continues to be one of the most attractive investment opportunities.
The legalization trend throughout the world has created significant opportunities for companies levered to the growth of this industry and we highlighted five companies that are leading this charge.
Five Cannabis Firms Leading the Global Movement
- Earlier this week, Canopy Growth Corp. (WEED.TO) (TWMJF) launched a strategic partnership in the Jamaican cannabis market as part of its ongoing international expansion. The Canadian firm is by far the largest and most diverse licensed medical marijuana producer and has a greater breadth of multi-site management than any other cannabis firm in the world. Canopy Growth is levered to the cannabis market in Germany, Australia, Spain, Chile, Spain, and Denmark. We are favorable on Canopy Growth’s outlook and view it as one of the best long-term cannabis investment opportunities.
- Aurora Cannabis Inc. (ACB.TO) (ACBFF) has been making waves in the global marijuana industry and is an industry leader. From Australia to Germany, this Canadian licensed producer has significantly increased its market share and is levered to new legal cannabis markets across the globe. Aurora Cannabis has a balance sheet that is flush with cash and over the next few months, we expect to see the company further expand its reach through acquisitions and investments.
- By now, most cannabis investors know that Aphria (APH.TO) (APHQF) has significant investments in the United States legal marijuana market (Florida and Arizona). Earlier this week, the Canadian licensed medical marijuana producer expanded its reach outside of North America and completed its first shipment of cannabis oil to Medlab Clinical Limited (MDC: ASX), an Australian medical life science company. We are favorable on this relationship and Aphria’s exposure to the Australian medical marijuana market. We will keep an eye on how Aphria continues to execute and if it chooses to target new international markets after this development.
- Over the last quarter, Cronos Group (MJN.V) (PRMCF) has been focused on expanding its reach and entering new legal cannabis markets. Earlier this month, Cronos signed a five-year exclusive distribution partnership with G. Pohl-Boskamp GmbH & Co, which distributes its products to over 12,000 pharmacies in Germany. Last month, Cronos signed a joint venture partnership with an Israeli company for the production, manufacture and global distribution of medical cannabis. In late August, Cronos exported its first shipment of medical cannabis oil to the Cayman Islands. We are favorable on Cronos’ continued execution and long-term outlook.
- CanniMed Therapeutics (CMED.TO) has benefited from its leverage to two emerging trends in the legal cannabis industry, the international opportunities and the demand for smokeless cannabis products. Earlier this year, CanniMed completed its first shipment of commercial cannabis oil to Australia and the Cayman Islands. CanniMed continues to focus on new market opportunities and in late August, the company signed a definitive supply agreement with a private South African corporation.