On October 17, Canada became the first advanced economy to legalize the adult use of recreational marijuana on the federal level. Medical marijuana has been legal in Canada since 2001, and several companies that are already thriving in the legal medical market expect to see major gains with this new consumer base.
Investors may want to take notice of these three cannabis stocks, according to Yahoo Finance.
1. Canopy Growth (NYSE: CGC)
Canopy Growth is already Canada’s leading producer of medical marijuana and they expect to be just as successful in the recreational market. With 3.2 million feet of growing space and several supply agreements with provinces and territories across Canada, they are poised to take advantage of the new legislation. New regulations that will be finalized in 2019 will open up other possibilities for the company, which plans to partner with Constellation Brands to produce cannabis-infused beverages.
2. Aurora Cannabis (NASDAGOTH: ABCFF)
Aurora Cannabis has expanded by acquiring several smaller growers, and by the end of 2018, they plan to have an annual production capacity of 150,000kg of cannabis. New supply agreements and a plan to reach a 500,000 kg annual growing capacity should lead to a promising future in the recreational market. Furthermore, Aurora Cannabis will be listing their stock on the US exchange to increase visibility, which could lead other Canadian cannabis producers to follow.
3. Aphria (NASDAGOTH: APHQF)
Aphria is on track to become Canada’s third leading grower in terms of growing capacity, with their production expected to increase to 225,000 kg of cannabis per year by early 2019. Aphria currently has supply agreements with all ten Canadian provinces, as well as an agreement with the Yukon territory. Coca-Cola was rumored to be interested in producing a line of cannabis-infused beverages with Aphria, but now the grower is reportedly a potential partner for global alcoholic beverage company Diageo.
Read the full article on Yahoo Finance here.
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