There’s big cash in cannabis. Like billions of dollars big money. According to Arcview, a cannabis investment and market research group, the legal cannabis industry is poised to be worth $57 billion by 2027.
In 2016, the North American legal marijuana industry grew by 34%. It’s projected to continue to grow an average of 26% each year through 2021. The North American Marijuana Index tracks the leading stocks operating in the legal cannabis industry in the United States and Canada. In 2017 it gained over 90%.
Throwing your money down on some marijuana stocks could end up paying out big. Investing in weed, however, is tricky business. There’s tons of money in marijuana, but in the US, it remains illegal at the federal level. Things in Canada are a different story.
Weed is legal in Canada for medical purposes and the country is poised to legalize recreational use nationally by June 2018. This means a lot of revenue that could potentially end up back in your pocket. Investing in Canadian marijuana stocks has never been hotter. Last year several Canadian medical marijuana growers created excellent stock returns. In 2018, the returns are expected to be even better. Check out the following marijuana stocks that have the prospect to make you a pretty penny.
The 5 Best Marijuana Stocks to Buy in 2018
Canopy Growth Corporation (CGC) is a giant in the Canadian legal cannabis industry. Last year, CGC brought in $40 million and shows no signs of slowing down. It’s the first federally regulated, publicly traded marijuana producer in North America and is traded on the Toronto Stock Exchange as WEED.
CGC originally operated as Tweed Marijuana Inc, then rebranded in 2015 with two established brands. CGC is the parent company of Tweed Inc., Tweed Farms Inc., Bedrocan Canada Inc., and most recently Mettrum Health Corp., which gave CGC a combined grow platform of over 2.4 million square feet. This cannabis powerhouse also has ties to companies in Germany and Brazil.
With recreational sales in Canada scheduled to start in July 2018, CGC will undoubtedly experience another surge in growth and a large increase in revenue. It already ranks as the largest marijuana stock by cap and is only poised to get even bigger. In October 2017, Fortune 500 Company Constellation Brands (distributor of Corona, Modelo, Svedka, etc.) bought 9.9% stake in CGC for $245 million.
This cannabis corporation is going places. And is quite possibly one of the best marijuana stocks to buy in 2018.
Aurora Cannabis is the next big thing to Canopy Growth. They’ve been rivaling the cannabis giant for years in terms of the largest market cap and are poised to get even bigger in 2018. Mid-year the company has plans to complete Aurora Sky, an 800,000 square-foot, state-of-the-art grow facility that will yield about 100,000 kilos of dry cannabis a year. Aurora is also seeking to acquire CanniMed Therapeutics, which would allow for an additional 130,000 kilos of dried cannabis to the table annually.
Aphria is also considered one of the top three Canadian cannabis companies to invest in. For one, they’ve got a four-phase, $100 million project in progress that is scheduled to be completed in January 2019. It will offer one million square feet of growing space, enough room to harvest 100,000 kilos of cannabis each year.
Recently, Aprhia made a deal with Shoppers Drug Mart to be its exclusive supplier of dried marijuana. With 1,300 stores throughout Canada, Shoppers Drug Mart will bring a huge financial boost to Aphria. This Canadian company also has the ability to export dried cannabis to countries around the world that have legalized medical marijuana.
GTEC (GreenTec Holdings) was created in 2017 in Kelowna, British Columbia and has quickly become a leader in high-quality craft cannabis production. Over the next ten years, GTEC has plans to add 22 million square feet of growing space, which could make it the largest grow op in the world.
It is currently constructing an 80,000 square foot building that will house GreenTec Bio-Pharmaceuticals, as well as 160 acres in the North Okanagan Valley and 35 acres in British Columbia on the Trans-Canada Highway. The company also has plans for a 7 million square foot site in an undisclosed location, on top of another undisclosed 13 million square foot site.
All this growing will lead to some serious revenue. Buying stock in GTEC could be an extremely solid investment.
Khiron Life Sciences
Although they’re not quite there, Khiron Life Sciences is set to be trading soon. This Columbian cannabis company is a group of capital market professionals that put together a team that will become one of the first suppliers of medical cannabis in Columbia.
Alvaro Torres, Khiron Life Science CEO, is an engineer with plans to dominate the Columbian cannabis industry. As the world began to evolve in regard to medical marijuana, Columbia knew it needed to also evolve and passed medical marijuana laws in 2016.
Khiron Life Sciences became one of the first companies in Columbia to receive a medical cannabis license. Currently, there are 11 medical cannabis license holders for the 50 million residents of Columbia. The legal cannabis industry in Columbia could very easily be the next big thing, with Khiron Life Sciences set to be a solid investment.
When it comes down to investing in marijuana stocks, these companies could be your best bet. The best thing you can do is research the realistic growth propensity for each company until you feel comfortable investing your money with them. Yes, there are risks involved. But there’s also potential that investors could make some big money off marijuana this year.