The contrast between the stock of marijuana in the U.S. and Canada couldn’t be more stark.
CNN Money reported that a real estate investment trust that plans to buy buildings to lease to medical marijuana growers went public on Wall Street – and the response was less-than-encouraging. On the NYSE, the Innovative Industrial Properties stock shares were priced at $20, inched upward to $20.52, and then finished the day by 4 percent less than where they started. Granted, this is just one of a few companies related to the marijuana trade that is traded on any major exchange. So in some sense, the fact that it’s being traded at all is something of an accomplishment. Another company out Britain, GW Pharmaceuticals, is listed on Nasdaq, and its stock is actually up more than 55 percent this year. However in the U.S., this has proven more the exception than the rule.
Meanwhile, Bloomberg Markets reports that a company called ICC International Cannabis Corp. debuted its first day on the Canadian stock market and closed 356 percent higher than where it started. The CEO of ICC, a company out of Uruguay, has called the Canadian market “perfect” for marijuana companies. The entire country is slated to legalize the use of recreational marijuana next year. If that event occurs on the timeline expected, there will be an estimated 4 million legal recreational users in Canada by 2021. That means there will be a potential for $4.5 billion in annual sales. Plus, it doesn’t hurt that legality at the federal level makes it a much more attractive option to investors. Continue reading