Investors looking to cash in on the cannabis industry might want to consider what is happening now in Canada. The country recently legalized marijuana nationwide for recreational use, a change in policy that will allow adults 18 and older to buy cannabis from dispensaries in a manner similar to beer. Because of this, cannabis companies are flocking to the northern nation to get in on a game where there is no risk of blowback from the federal government. Two of the latest stocks headed that direction are Acreage Holdings and LivWell, according to a recent report from Investors Business Daily.
It was just announced that Acreage has plans to go public in Canada later this year. The company, which is headquartered in New York City, just raised close to $120 million to help take their mission to a larger, legal market.
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The move comes just months after former Republican Speaker of the House John Boehner and former Massachusetts Governor Bill Weld signed on to the board of advisors. Since then, the two have been calling for the U.S. Government to end pot prohibition. Unfortunately, that is nowhere close to happening. It is for this reason the company plans to jump on the Canadian Securities Exchange (CSE) in the fall. This has been a good jumping off point for U.S. firms looking to attract additional investors.
“The liquidity on the CSE is incredibly attractive to Acreage, and we know that retail investors in the U.S. have become comfortable with that exchange,” Kevin Murphy, CEO of Acreage Holdings, said in a statement. “We expect to see a tremendous response to our offering this fall.”
Willie Nelson is also headed to the Great White North. Through a deal struck earlier this week, Nelson’s “Willie’s Reserve” cannabis brand will be distributed throughout Canada exclusively through LivWell.
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The company said it is taking “intellectual property out of Colorado and monetizing it in Canada, because it cannot be effectively monetized from Colorado.” LivWell is also involved in a reverse takeover that will allow it to list with the CSE, as well. Still, despite conflicts with federal law, LivWell International will continue expanding in the United States.
Canada is set to launch its recreational cannabis market in October. In the beginning, only the sale of smokeable cannabis will be permitted. This sector alone is expected to bring in $5 billion. But, at some point in 2019, companies with edible cannabis products will be given the green light to capitalize on the newly legal climate. This is when the Canadian cannabis market could see a boost of around $15 billion in annual sales. So don’t be surprised to see more marijuana firms migrating north in the next coming months.
