When it comes to pot stocks, there’s no denying that Canadian companies have dominated the market recently. You can track the start of this back to 2018 just as the sector was heating up. Cronos Group (CRON Stock Report) had listed on the NASDAQ exchange. Seemingly so, the floodgates opened wide for more Canadian companies to either relist or dual list on US exchanges.
Marijuana stocks like Aphria (APHA Stock Report), Aurora (ACB Stock Report) and Canopy Growth (CGC Stock Report) continue to dominate market capitalization sizes. While other cannabis companies like Hexo (HEXO Stock Report) and Tilray (TLRY Stock Report) continue to work to find footing through strategy deals with mainstream businesses. If you remember, it wasn’t that long ago where Hexo inked a deal with Molson Coors (TAP Stock Report) to form a joint venture for cannabis-related beverages.
It’s almost reminiscent of the early days of tech moguls. CEO’s come dressed down to interviews and hold a no-nonsense demeanor. However, the show sometimes appears much different than the actual companies they represent. Just recently Tilray and Canopy reported earnings to lackluster reactions in the market. But something could be coming to make certain the markets will be watching these Canadian pot stocks soon.
Canada, Pot Stocks, And Marijuana 2.0
What some have referred to as Marijuana 2.0 puts Canadian marijuana stocks in a direct spotlight. In October, rules will change that allow cannabis derivatives like to be sold across the country. So, the tone has been set, despite the case for earnings from some of the “long standing” pot producers trading on larger exchanges.
But it should also be mentioned that the vast majority of cannabis companies are listed elsewhere. Most are dually listed and to gain exposure in the US, you need to look at the OTC Market. Before you say that the exchange is “just for penny stocks,” think again. At the end of the day, the OTC is just that, an exchange. And due to certain regulatory framework, it can be an easier way to list in the public markets.
Case in point, House Speaker John Boehner is on the board of OTC pot stock ACRGF which is the stock symbol for Acreage Holdings. The funny part is that it’s a US company. Others like Curaleafe (CURLF Stock Report) and Planet13 (PLNHF Stock Report) are also selling in the US but listing in Canada. A major reason for this is that major exchanges have barred American companies that operate outside the U.S. federal law.
Other companies like Innovative Industrial Properties (IIPR Stock Report ), GW Pharma (GWPH Stock Report) or Greenlane (GNLN Stock Report) can get by because they don’t directly grow, handle, or sell the plant.
There is so much going on with pot stocks in particular. The main thing is that you need to do your homework. It’s certainly true that listing on a major exchange opens options for more exposure. But that doesn’t necessarily mean they are the best choices out there when it comes to finding pot stocks to buy. At the end of the day, do your research and filter through the hype. That’s because, with just as much hype as you may think OTC stocks or penny stocks could have, there’s likely just as much coming from funds and other big players about NYSE or NASDAQ pot stocks.