The American Invasion into Canadian Cannabis Retail
Is Canada the new land of cannabis opportunity? A few American cannabis retail companies’ seem to think so. The grass appears to be a little greener across the border these days. Recent news outlets from across the country have reported the arrival of an array of American cannabis retailers ready to hit the growing Canadian cannabis market. Stock prices from cannabis companies across Canada have seen a fluctuation in stock price movement during the last few months.
The summer months often proves to be a dull financial quarter for most companies. Who are these American cannabis companies and how are they performing thus far in Canada? Just as you guessed, they are merely average in terms of stock price strength.
The Canadian Securities Exchange has been merely mediocre to the American newcomers.
Green Thumb Industries, based out of Chicago (GTII: CNSX) started with an extremely high valuation in 2014. The American cannabis company was previously valued at 70 dollars a share on March 07, 2014. The current (2018) per share valuation for Green Thumbs within the Canadian market has an estimated per share valuation of around 10 dollars.
Other American companies like MedMen who have recently entered into the Canadian cannabis market at the beginning of May have grasped a more stable stock price. MedMen (CNSX:MMEN) who are only a few months new to the Canadian cannabis market has experienced a mild trading share price between 5 to 4 dollars a share.
Other companies’ in IPO stages looking to make a break for the border are Liberty Health Sciences Inc., Acreage Holdings, and Chalice Farms to name a few.
The current U.S. federal regulations against the cannabis industry within the United States has pushed these American businesses into the great white north. Cannabis investment outlets have reported that international investors feel more secure with American cannabis companies operating in Canada. Surprised? Neither are we.