The 3 Stocks To Watch As Canada Legalizes Cannabis

Canada is about to legalize cannabis on a national level.

The 3 Stocks To Watch As Canada Legalizes Cannabis
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Canada is on the brink of legalizing cannabis nationwide after the Canadian Senate recently voted 56-30 in favor of the move. There was a lot of speculation as to how the pot stock market would react. Would it jump? Would it stay the same? Maybe fizzle a little or even tank? Motley Fool reporter Keith Speights accurately predicted a slight fizzle, but why?

For one thing, he pointed to the many amendments to the original bill, including a provision that prohibited the selling of t-shirts and other promotional type “swag,” which can actually make a fairly deep cut into retail store profits.

Mostly the stocks stayed about the same or took little dips, but there are three in particular that are predicted to potentially soar once the legal market is up and moving.

Aurora Cannabis (NASDAQOTH:ACBFF): Right now, Aurora’s acquisition of MedLeaf is in the final stages. Both companies are well known in Canada’s vast medical marijuana landscape and they are both well prepared to take on the legal market the day it opens. Between the two entities there are over 100,000-square-feet of grow space and “Aurora Sky,” Aurora’s biggest growing facility to date, is set to open soon. All in all, Aurora believes that it will be able to grow 570,000 kilos of cannabis yearly by 2019’s end.

Canopy Growth (NYSE:CGC): The biggest cannabis producer in Canada, though that could become more competitive after Aurora’s acquisition of MedLeaf, Canopy Growth is beyond set to continue taking off once Bill C-45 is firmly in place. Another advantage for Canopy is that they’re well into the retail world, and they’ve built supply arrangements in five out of Canada’s 10 provinces already. With 2.4 million-square-feet of cannabis grow space and counting, they should have plenty of quality product to offer the marketplace.

Aphria (NASDAQOTH:APHQF): Though not on the massive manufacturing levels of Aurora or Canopy quite yet, Aphria is in the top five Canadian cannabis producers and is in a good position to continue growing with the emerging legal market. Currently the company is building brand awareness for its new adult use products. In May Aphria made a deal with North American spirit and wine distributor Southern Glazer’s, the largest in it’s realm of competition. Plus, Aphria has plenty of room to grow and is expanding that space now, as you read.

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