Oct 15 (Lagos) - Marijuana stocks are hitting highs as Canada prepares to legalize recreational use of weed on Oct 17.
Most of the weed Companies are listed on Canada's Toronto Stock Exchange and are up sharply today including
Aurora Cannabis up 7% today,
Canopy Growth up 10% today,
US listed Tilrey is up 7% as well.
Since we do not want to discuss smaller Companies because they are very volatile as these Companies are popping up in North America on a weekly basis. The above mentioned Companies are the biggest by market capitalization.
Canopy Growth has already attracted investment of USD 4 billion from Constellation Brands, the maker of Carona Beer.
There was speculation that Coca Cola was in talks to make an investment in Aurora Cannabis last month which was neither confirmed nor denied by the Edmonton based Company. It is also notable that the Company has increased its efforts to list on the New York Stock Exchange and listing is expected to happen in November. This could potentially open the doors of US investors to invest directly in Aurora Cannabis the biggest Company by current production numbers.
Canopy Growth is already listed in USA and Canada. The Company achieved its dual listing prior to investment from Constellation Brands.
Tilrey is a USA based Company which is focusing on cannabis based products and is the first Company to export weed from USA to Australia and New Zealand legally.
In Nigeria, a country of almost 200 million people with 25% penetration of Marijuana according to sources, this is a business which is waiting to be explored. Nigerian politicians need to open up to the idea of legalization as it will be embraced by the population. The economic benefits that Nigeria can add can become a major foreign exchange earner for the government.