While the US boasts the largest economy and stock market in the world, with giants Apple, Netflix and Google, Canada offers the largest cannabis companies for now.
To be sure, US cannabis companies such as MedMen Enterprises Inc. and Terra Tech Corp. have been expanding quickly. But Canada’s Tilray Inc., Canopy Growth Corp., Aurora Cannabis Inc., Aphria Inc., Cronos Group Inc. and others have bulked up significantly. The leading Canadian company, British Columbia-based Tilray, is currently valued at $14.4 billion.
With adult-use sales scheduled to begin in Canada on October 17, the spigot of capital has opened as investors pour money into the nation’s top pot stocks. The total cannabis market in Canada, including medical and recreational products, may yield up to $5.4 billion (C$7.2 billion) in sales next year, according to estimates from Deloitte.
With an eye on this growth, financiers and executives have been eager to offer investors new options. Tilray’s shares jumped 30% in their stock market debut on the NASDAQ on July 19, giving the company a total market value of $2.7 billion at the time. It’s a rich price tag for a business on track to earn just $80 million this year.
But that’s the kind of valuation pot