Quite a few countries before Canada had legalized recreational marijuana use, or enacted laws partially allowing it. However, none of those countries created a legal market for marijuana. For a market to emerge it has to be backed by serious economic and political power; Canada is just such a country. On October 17th 2018 the Canadian parliament approved the Cannabis Act, giving the green light for using and growing marijuana and initiating the process for a market to emerge. The creation of companies specializing in producing marijuana for recreational purposes increased growth in the market. However, there were some existing players in the market for marijuana for medical purposes such as AbbVie, a big biopharmaceutical based in in the US.
There are 20 leading companies in the cannabis market, who are producing for recreational use or have cannabis related business. At the moment, Anheuser-Busch, AbbVie and Altria are the leading players in the market in terms of market capitalization, varying between $94.4bn and $152.4bn. However, these companies are not producing cannabis exclusively, meaning they are involved with the marijuana industry in a more indirect way through investments.
Aurora Cannabis revenues show the company has great potential and has grown considerably since its creation, mostly because of the legalization of cannabis in Canada. The company has experienced a revenue increase 370% since 2016; net income has increased by 135%, indicating the company’s remarkable sales growth. In addition, Aurora Cannabis assets have increased massively alongside long-term investments.
For further reading please visit: Cannabis Market: Canada’s legalization of recreational marijuana is boosting the fortunes of cannabis stocks,Aurora Cannabis Inc – Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments