Want to invest in cannabis? INN offers investors a growing list of all cannabis-related companies listed on the TSX. See what they’ve been up to lately.
The business of cannabis has risen in the past few years, and with it many investors have been keen to discover how best to invest in cannabis.
Now with recreational use legalization on the horizon for Canada, companies have been able to enter the big leagues of stock trading by breaking into the Toronto Stock Exchange.
The TSX has seen leaders of the cannabis industry join its ranks, offering investors a new venue for cannabis ventures. These include massive licensed producers (LPs) expanding their product and brands.
These companies are leaders in the industry thanks to their rapid growth and capability to upgrade to the TSX. They lead in terms of large-scale developments and usually size of market cap.
For those interested in how to invest in cannabis, here the Investing News Network offers a growing list of all cannabis-related companies listed on the TSX in alphabetical order.
Invest in cannabis: Stocks
Also licensed under the ACMPR, much like other companies on the Canadian marijuana stocks, Aphria is located in Leamington, Ontario. The company self-describes itself as “truly powered by sunlight”, which they state allows for natural growing conditions to produce safe medical cannabis products.
Aphria made its strategic entrance to the US cannabis market through Liberty Health Sciences (CSE:LHS), which seeks and partners with cannabis companies in the US. Their first market is in Florida. Despite its interest in the American market, the company was forced to dump its assets south of the border due to regulations issues with the TMX Group.
In June the company announced a C$225 million bought deal for 18,987,400 common shares from a group of underwriters represented by Clarus Securities. The company said it will use the proceeds for a combination of a new extraction facility set to cost C$55 million in Leamington, Ontario, a capacity increase and the construction of additional cannabis production facilities in legally permitted jurisdictions.
Aurora Cannabis (TSX:ACB)
Next on our Canadian cannabis stocks is Aurora Cannabis. This company is currently fast at work on the development of their Aurora Sky facility, an 800,000 square foot hybrid greenhouse, which obtained its cultivation license from Health Canada, the country’s regulator.
As part of their most recent quarterly update to shareholders the company revealed it had reached $11.7 million in revenue for the second quarter of their fiscal 2018 year. The company also shared some details on one of their most recent partnerships, an investment deal with Liquor Stores N.A. meant to plan for the creation of cannabis retail outlets.
The company explained its new investee will convert existing retail locations into specific cannabis outlets while also looking for new spaces to develop.
Now the company continues its path of acquisitions by announcing a deal to purchase MedReleaf (TSX:LEAF). The deal is worth over C$3 billion to buy all the issued and outstanding common shares of MedReleaf. For those wanting to invest in cannabis and looking for a large company, Aurora is arguably the second largest in Canada.
CannTrust Holdings (TSX:TRST)
CannTrust became the sixth LP to join the TSX when its shares officially launched in the premier Canadian exchange on March 5. The company skipped the TSX Venture exchange entirely and upgraded from the Canadian Securities Exchange (CSE).
“Graduating to the TSX reflects the amazing progress we have made since listing on the CSE in August last year and represents yet another important milestone for CannTrust as we continue our successful journey as one of Canada’s leading cannabis companies” Eric Paul, CEO of CannTrust said.
This year CannTrust managed to complete a $15,000,000 mortgage financing deal for its greenhouse facility in Niagara. As part of its first-quarter 2018 financial results, the company upgraded its expectations for the annual production of cannabis at the Niagara facility up to 50,000 kilograms.
Canopy Growth (TSX:WEED)
Canopy Growth is the largest Canadian cannabis stock, having been the first cannabis organization to surpass the $1 billion market cap.
Canopy holds producers Tweed and Bedrocan under its umbrella. Tweed’s production facility is located in the old Hershey factory in Smith Falls, Ontario, while its breeding facility was completed in September 2016. The company believes the state-of-the-art facility is the first of its kind and will form the foundation of new Canadian-bred genetics.
Canopy regularly announces new deals and partnerships with international emerging markets. Late in 2017, the company announced a deal that sent a signal to the entire industry. Constellation Brands (NYSE:STZ), a massive alcohol producer in the US, invested in 9.9 percent equity of Canopy, which signaled the increased credibility of the cannabis business to the overall market.
Following in the steps of Cronos Group (NASDAQ:CRON), Canopy launched its stock on the New York Stock Exchange. The company trades in the US under the ticker symbol “CGC.” As a US investor, this is another stock you can invest in cannabis with. Canopy Growth is arguably the largest cannabis company in Canada.
Cronos Group (TSX:CRON)
Cronos is a Canadian licensed producer with assets in international markets such as Australia and Israel. This year the company became the first Canadian LP to list its common shares on the Nasdaq Global Markets. The company does not own any assets in the US but has indicated it wishes to enter the market once all legal issues are cleared for the drug.
Since the start of the year, the company has been raising money with a couple of different bought deals, worth C$46 million and C$100 million separately. The company upgraded its Canadian shares to the TSX on May 22.
As part of its first-quarter result update for 2018, the company reported C$2.9 million in sales representing a C$2.4 million increase from the same quarter during the previous year.
MedReleaf is one of the Canadian cannabis stocks whose company is working to advance the knowledge available on the therapeutic benefits of cannabis for patient care. At the Canaccord cannabis investor day conference, they revealed throughout 2018 their four primary areas of focus included the Canadian medical cannabis market and opportunities over in the international market.
The company was rumored to begin a process of making players know the company was available for the taking. The rumors were then confirmed once an acquisition deal with Aurora Cannabis was announced.
The deal was reported at a value of nearly C$3.2 billion in which LEAF shareholders would earn 3.575 common shares of Aurora per share.
If you invest in cannabis stocks, but haven’t heard about this one, it’s because it’s relatively new on the scene. Publicly launched this year, this company counts with the backing from major Canadian LP Aurora Cannabis, even appointing Cam Battley, chief corporate officer with Aurora, into TGOD’s board of directors.
The company was able to close its initial public offering with gross proceeds worth $132,263,225 under the IPO thanks in part to issue an additional 36,236,500 units of the company, and including the over-allotment units to financial institutions.
“The further investments by Aurora Cannabis… in both the IPO and the Over-Allotment Option bring Aurora’s total investment in the Company to $78,145,562 and further validate TGOD’s business plan and value,” Robert Anderson, TGOD’s Co-Chairman and CEO said in a statement.
TGOD has revealed a planned entry into the global beverage industry thanks to the potential of cannabis-infused drinks. “The focus will be to create industry-leading branded products, and to supply organic base ingredients for use in global beverage brands,” TGOD wrote.
Which stocks on the list would you pick to invest in cannabis? Let us know your top picks.
Do you want to know more about how to invest in cannabis? Check out the following related articles to find out more about this exciting investment space:
- Cannabis Weekly Round-Up: The Amendment Fight for Bill-C45
- Canadian Cannabis Stocks
- VIDEO — Cannabis Update May 2018
- New Report Projects Legal Cannabis Boosts 2019 Sales
Did we miss a company that you think should be included on the TSX cannabis stocks list? Let us know in the comments!
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Green Organic Dutchman is a client of the Investing News Network. This article is not paid-for content.