Cannabis on the stock market: Today, February 27th 2018 marks a pivotal point for the United States cannabis industry. Cronos Group inc. (PRMCF) is a medical marijuana producer, which will become the first cannabis company to be listed on the Nasdaq stock market today under the trading ticker symbol “CRON.”
The fact is, Cronos will become the first marijuana stock to ever be listed on any major US exchange. Toronto-based Cronos Group already trades in Canada on the TSX Venture Exchange. The listing is sure to help expand the Green Rush here in the U.S by opening the market to investors who were previously uncomfortable or restricted from putting funds abroad or into over-the-counter stocks. Investors now have a mainstream option, backed by the Securities and Exchange Commission, to become a part of the Green Rush.
Cannabis on the stock market… continued
Cannabis is still federally illegal in the United States but because Cronos is a licensed Canadian business producing weed for the soon-to-be legal recreational market in Canada, the company is technically not excluded from trading on U.S. stock exchanges. The intentions of Cronos are not so much geared towards gaining a piece of the U.S cannabis market, rather they prefer to use this to introduce the Cronos name and brand to U.S. investors, who will now be able to easily buy shares in one specific Canadian company.
In the U.S, nine states including California have legalized recreational cannabis, while 29 states have legalized medical cannabis. From 1969 to today, support for legalized marijuana has increased more than fivefold; springing a time where support for marijuana has never been higher. The American market alone is expected to reach $50 billion by 2026, up from $6 billion in 2016, according to investment bank Cowen & Co.
Read more about the benefits of CBD here.
Cronos Group, with a market value of $1.4 billion, has been on a massive growth trajectory of late. Besides producing cannabis for the Canadian market, it also ships product to Germany, where medical cannabis is legal. Earlier this month, the company launched a subdivision in Australia (Cronos Australia), which will focus on producing “pharmaceutical grade medicine” for the fairly new Australian medical market. Cronos is also in a joint venture with a kibbutz in Israel which aims to produce, manufacture and distribute medical cannabis internationally.
Read more at:
https://www.investopedia.com/news/cronos-group-will-be-nasdaqs-first-pot-stock/
