Yahoo Finance has compiled a list of the most valuable cannabis companies in the world and has explained that the recreational market is “outpacing” the medicinal one as the “world public opinion towards the consumption of weed is changing.” They go on to explain that there are currently 18 states in the U.S. that have legalized both medical and recreational cannabis, while an additional 18 have legalized medicinal use of cannabis only. That being said, let’s have a look at the most valuable cannabis companies.
The Top Valuable Cannabis Companies
The global cannabis industry has increased “more than sixfold from $3.3 billion in 2014 to $20.6 billion in 2020.” Additionally, while the impact of the coronavirus pandemic has devastated many industries, it appears as though it led to a “robust growth in the weed industry.” Yahoo Finance ranked the companies based on their market capitalization. Market capitalization indicates the value of a company on the stock market. It’s calculated by multiplying the total number of shares by the present share price. While 15 companies were listed, we’ll focus in-depth on the top five. Let’s explore.
1. Green Thumb Industries Inc.
This company’s market capitalization is $9.278 billion and is responsible for manufacturing and distributing cannabis in the medical and recreational markets. The cannabis brands from Green Thumb Industries Inc. include Beboe, Dogwalkers, Dr. Solomon’s, Incredibles, Rhythm, and The Feel Collection. The company also owns a “network of fast-growing retail stories” under the names Rise, Essence, Bluepoint, FP Wellness, and Affinity.
2. Canopy Growth Corporation
This company’s market capitalization is $8.6 billion and was formerly known as Tweed Marijuana Inc. Canopy Growth Corporation was the first company to get a federal license in order to publicly trade cannabis. The company sells medicinal and recreational products in the form of edibles, beverages, vapes, dried flowers, soft gel capsules, and oils.
3. Tilray Inc.
With a market capitalization of $7.2 billion, this Canadian company operates in Canada, America, Europe, Australia, and Latin America. The company only produces and distributes sophisticated medical and recreational cannabis products, as well as allocates a large chunk of their resources to “further understand[ing] the therapeutic value of weed.” Insider Monkey claims that this company has the “largest global geographic footprint among all the companies in the weed industry.”
4. Trulieve Cannabis Corp.
This American company’s market capitalization is $6.5 billion. Trulieve Cannabis Corp. has 126 dispensaries and 22 cultivation facilities across 11 states. They offer a wide range of products that can also be purchased online from their website, as they offer home delivery services. In 2020, the company saw a 106% financial increase.
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5. Cresco Labs Inc.
This company is based in Chicago and has a market capitalization of $2.8 billion. Its products are sold under brands such as Reserve, Remedy, Mindy’s Edibles, High Supply, Good News, Wonder Wellness Co., and Sunnyside. The company has 18 production facilities, 44 retail licenses, and 32 dispensaries located across 10 states.
Other Highly Valuable Cannabis Companies
While these cannabis companies did not quite make the ranks of the top 5, their market capitalization catapulted them to the list of top valuable cannabis companies nonetheless.
- KushCo Holdings, Inc.: $163.6 million
- The Green Organic Dutchman Holdings Ltd.: $176.6 million
- Neptune Wellness Solutions Inc.: $192.2 million
- Cara Therapeutics Inc.: $699.6 million
- HEXO Corp.: $783.1 million
- OrganiGram Holdings Inc.: Market Capitalization: $825.9 million
- Aurora Cannabis Inc.: $1.605 billion
- Sundial Growers Inc.: $1.635 billion
- Harvest Health & Recreation Inc.: $1.7 billion
- Innovative Industrial Properties Inc.: $4.8 billion
Legalization Will Bring More Investment Opportunity
Uruguay and Canada are currently the only countries that have legalized the commercial sale of recreational cannabis nationwide but medical cannabis is now legal in dozens of countries. Alaska was the first state to legalize both medicinal and recreational cannabis in 2014 and the changes in perceptions of cannabis are calling for more to follow suit.
Yahoo Finance explains that those in support of cannabis legalization claim that the legalization will bring new investment opportunities, job growth, and increased tax revenues, not to mention easier access for consumers to this alternative but effective therapy.
Despite the illegal status of cannabis in many countries, its possession is no longer seen as a criminal act in many states. Yahoo Finance goes on to explain that as the government’s attitudes change, the cannabis industry “is expected to continue its growth momentum in the ongoing decade”. They go on to explain that the fact that these companies have seen such significant growth in the last two years is a testament to that sentiment. Apparently, the cannabis market is projected to reach over $63 billion by 2024.
It should also be noted that the cannabis companies in this list have been selected on the basis that they “specialize in weed production and have weed products as their primary products”, which means that there is a possibility that other companies in cannabis adjacent markets could also significantly contribute or impact the gross-cannabis market capitalization.
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