There has seemingly been no better time to invest in the cannabis industry. Around the world, governments are adopting new legislation that is effectively making medical and recreational cannabis legal.
Currently, the cannabis industry is the fastest-growing in the world. In 2020, sales are expected to double. Furthermore, the industry is expected to worth $75 billion by 2022 and eventually surpass cigarette sales altogether.
Below are three companies we think are worth considering adding to your portfolio.
Canopy Growth has a market value of $7.7bn and is currently the largest cannabis-focused company in the world. They sit at the very epicentre of the industry and are involved in research, services, products and everything in between.
The company is well-positioned to benefit from further cannabis legislation. They demonstrated this in Canada where cannabis was legalised; it is estimated that Canopy Growth is responsible for around 30% of weed sales.
To consolidate their position as the world’s premier large-cap cannabis-focused company, Canopy Growth has spent tens of millions of purchasing businesses across the entire value chain.
Most interestingly, Canopy Growth recently completed the purchase of German dry herb vaporizer company Storz & Bickel. Storz & Bickel have a hard-earned reputation for designing and manufacturing some of the best herbal vaporizers in the world. Their flagship models, the Volcano and Mighty are the only vaporizers officially recognised as medical devices in countries where cannabis has been legalised. Storz and Bickel are well placed to benefit from an increasing number of countries updating their stance to medical cannabis.
Furthermore, acquiring Storz and Bickel increases Canopy Growth’s retail footprint across the world. Such is the demand for their products that models such as the Mighty and Crafty are sold in the biggest and best dry herb vaporizer shops in the world such as Vape Elevate.
Enwave is a company involved in the process of cannabis products. Millions of tons of legal cannabis is consumed across the globe and that number is increasing year on year. Enwave has created technology that is able to quickly and uniformly process and dry cannabis herbs and flowers at a temperature low enough to retain all potency, cannabinoids and terpenes.
EnWave’s technology is proving very popular with the big players in the cannabis industry. They have won exclusive contracts from the likes of Aurora Cannabis, Tilray and Green Organic Dutchman. These contracts mean that EnWave’s technology is now being used for a significant proportion of legal and medical cannabis in the USA, Canada and the EU.
EnWave appears to be a great opportunity for those who like to diversify their portfolio because its technology can be applied outside the cannabis industry. EnWave’s drying process is also being adopted by the food and pharmaceutical industries in high volumes.
There are over 120 different cannabinoids that make up the Cannabis Sativa plant. The most well-known compound is THC which is infamous due to reputation for recreational use. However, some compounds have no psychoactive effect on users at all and are used medically. One example being Cannabidiol.
The popularity of Cannabidiol – or CBD for short – has grown exponentially over the last two years. You can now find the cannabinoid in dozens of products including vape juices, tinctures, creams and even water!
Charlotte’s Web is likely the most well known CBD company in the world and have been involved with the industry from the beginning.