In the last few years, a handful of states in the U.S. moved to legalize cannabis for either medical or recreational purposes. While recreational pot in America is currently in jeopardy, our neighbors up north are currently exploring the legalization of cannabis throughout the country. Some industry experts expect this to happen sometime within the next four years.
That’s where businesses come in. Since cannabis is no longer to be sold on the streets in some states (and eventually all of Canada, hopefully), real, actual businesses will need to produce and market cannabis. That’s why countless businesses are popping up to fulfill those needs on both sides of the border.
One of those businesses, however, is now a publicly traded company. Canopy Growth, which trades under $WEED (or $WEED.CA), first went public on the Toronto Stock Exchange in July of 2016. After several months, they’ve achieved something every company dreams of: they’re a billion-dollar company.
Canopy Growth is an Ontario-based company formed in 2014.
The company produces cannabis for medical users in Canada. They also export their pot-based products to other countries like Germany and Brazil. They grow and refine their products in an old Hershey’s factory.
Canopy doesn’t just sell traditional cannabis “flowers.”
These days, selling regular old pot will only get you so far. That’s why the company makes cannabis-infused oils, supplements, and personal healthcare items. They even make personal lubricants for women that are infused with THC.
The company, currently worth over $1.8 billion in market share, is one of the biggest weed-based companies around.
CGC has a cannabis growing operation that’s 550,000 square feet in size. They produce incredible yields of the plant, rake in millions, and have the buying power to acquire smaller cannabis-based businesses. They even hold the rights to use Snoop Dogg’s name and likeness.
Unfortunately, they have a lot to worry about in terms of their future.
Cannabis isn’t legal in Canada yet, though it could be in the near future. Also, due to the recent administration change in the U.S., states with legal weed laws could, in fact, see those laws overturned. This would lead to weed being criminalized once again. Sean Spicer recently made mention of this during a press briefing, something that caused $WEED to dip by over 4.6% today.
Should you invest in $WEED? Due to the current political climate, no one knows whether or not recreational use of cannabis will still be allowed even by the end of the year. Since CGC is a major exporter and would see decreased business if cannabis became illegal again, their stock and value would surely go down.
If you believe that legal cannabis is the future — which many people do — investing in one of the leading cannabis companies would be a no-brainer (pending your own research, of course). If you’re cautious and still worried about the meddling of politics, you might want to hold off on investing for a bit.