Several new cannabis-related companies have been successful enough in their business endeavors to be included in the U.S. Marijuana Index, according to a report from Forbes.
Earlier this week, Marijuana International Corporation (MJIC) added five new stocks to the index, which included companies dealing in multiple facets of the legal cannabis industry ranging from the construction to cannabinoid-based pharmaceuticals.
This is a rather significant development because it is a testament to the future of marijuana in the United States. After all, big money operations similar to what the country has grown accustom to seeing with respect to the alcohol, tobacco and pharmaceutical industries are the centerpiece of capitalist America.
Before a company can be indexed, it must have a market value weighted index of $30 million, a daily trading volume of $600,000 and a price per share of no less than 10 cents. Those companies with $5 million or more in revenue are exempt from these requirements.
Not surprisingly, the U.S. Marijuana Index has experienced around a 46 percent increase from where it was a year ago.
“The first quarter of 2017 saw the cannabis stock market settle from the previous fall’s elections, with average daily volatility and volume for the constituents on the North American Marijuana Index decreasing 67 percent compared to the fourth quarter of 2016,” Dan Nicholls, Vice President of MJIC, said in a press release. “Overall, the Canadian Marijuana Index increased seven percent and the U.S. Marijuana Index decreased one percent in the first quarter.”
Here Are The Five Stocks:
AmeriCann Inc: The company gained some noteriety earlier this year when it was announced that it would build the largest marijuana cultivation center in the United States. The Denver-based operation is set to construct a one-million-square-foot facility near Freetown, Massachusetts. The project will take place on over 50 acres previously owned by the Boston Beer Company. However, in addition to real estate deals, the company also raises venture capital for marijuana-related businesses. The company has experienced growth of about 400 percent over the past twelve months.
Cannabics Pharmaceuticals: This organization develops cannabinoid medications. It has a prominent research facility in Israel, where it is fully licensed by the government to look into the medicinal benefits of the cannabis plant. There is a lot of focus on this company right now because it is on the verge of showing the world how to kill cancer cells without harming the patient. In short, the company believes it has found a way to cure cancer using only cannabis. It makes sense why its stock has increased by around 2,000 percent in the last year.
Marapharm Ventures Inc: This group invests in medical and recreational marijuana businesses in the United States and Canada. Forbes contributor Debra Borchardt says, “the company has not earned any revenues in any of the last eight quarters, but it has traded up over 400% in the Canadian market. It has only been listed in the U.S. for a short time.”
Medical Cannabis Innovations Group (MCIG): This company is a bit bizarre. Not only does it market and distributed vaporizers but it also deals in the construction of marijuana cultivation sites. But this approach is apparently working, at least to some degree. Overall the company has experienced significant growth in the past twelve months, falling only slightly since January.
Solis Tek Inc: This is an interesting stock because in deals in the one aspect of the marijuana industry that is not talked about much: lighting. The company simply provides cultivation sites with digital lighting systems. “It has a $37 million market capitalization and recorded revenues of $8.5 million for the year ending 2016,” reports Forbes. “The stock’s share price over the past year has ranged between 25 cents and $1.42 and lately traded at $1.02.