Dennis Hammer is a writer and finance nerd with six years of investing experience. He writes about personal finance for Wealthsimple. Dennis also manages his own investment portfolio and has funded several businesses in the past. Dennis holds a Bachelor's degree from the University of Connecticut.
As marijuana legalization and cultural acceptance grows, many companies in the United States and Canada can now openly produce, cultivate, and process cannabis, as well as develop unique products for medical and recreational use. As an investor, you may do well to add some marijuana stocks to your portfolio.
What are Marijuana Stocks?
Marijuana stocks are companies directly involved in the production, processing, and distribution of cannabis-derived products. We can’t see the future, but we believe they represent a strong opportunity for growth.
But keep in mind that marijuana stocks shouldn’t make up the entirety of your profile. In fact, they should only represent a small part of your overall investment strategy. You should never put all of your eggs in one basket, no matter how good the deal looks. Instead, diversify your investments to spread out your risk so you don’t lose your savings.
A List of Canadian Marijuana Stocks
In June 2018, the Cannabis Act made cannabis use completely legal throughout the country. As such, the cannabis industry has flourished. Here’s a list of Canadian marijuana stocks you might add to your portfolio.
1. Canopy Growth Corporation ($15.421 billion market cap)
Canada Growth Corporation grows and sells medical cannabis, including dried plant matter, softgel capsules, hemps, oils, and concentrates. It owns several brands, including Tweed, Spectrum Cannabis, DNA Genetics, CraftGrow, and Leafs by Snoop. It also participates in clinical research to explore the effectiveness of cannabinoids on concussion-related neurological conditions.
2. Namaste Technologies Inc. ($167.37 million market cap)
Through its subsidiaries, Namaste ecommerce retails vaporizers and smoking accessories. It operates CannMart, Canada’s first non-cultivation medical cannabis markeplace, providing products from a selection of federally-licensed cultivators. It sells across a network of websites in 26 countries.
3. Emerald Health Therapeutics ($395.48 million market cap)
Emerald Health Therapeutics produces dry cannabis and cannabis oils for medical and recreational purposes. It is a “seed-to-sale” business with experience in large-scale agriculture. It plans to continue developing pharmaceutical, botanical, and so-called nutraceutical products that provide medical and wellness benefits.
4. The Supreme Cannabis Company Inc. ($414.70 million market cap)
The Supreme Cannabis Company produces high quality marijuana for a wide selection of brands and partners, such as Medigrow, 7Acres, and Cambium. The company focuses on disciplined, well-managed growth and high-quality products.
5. OrganiGram Holdings ($1.151 billion market cap)
OrganiGram Holdings owns a portfolio of companies that produce and sell dry cannabis products (plant cuttings, pre-rolls, blends, and dried flowers), cannabis oils, vaporizers, and accessories. It sells wholesale and retail online and through phone orders.
6. Origin House ($574 million market cap)
This is a private equity firm that acquires majority stakes in cannabis brands. It focuses on consumer brands, industry infrastructure, and intellectual property.
7. The Green Organic Dutchman Holdings ($783 million market cap)
Green Organic is a cannabis-based research and development company that produces organic cannabis products, including dried plants, oils, and seeds.
8. Aurora Cannabis ($9.089 billion market cap)
Aurora Cannabis produces and sells medical cannabis products. It is vertically integrated across the entire industry, including cannabis breeding, genetic research, product development, home cultivation, and retail and wholesale distribution. It sells dried cannabis and cannabis oils, vegan capsules, hemp products, and vaporizers and vaporizing accessories. It also operates a network of cannabis counseling centers called CanvasRX.
9. Aphria Inc. ($1.72 billion market cap)
Aphria produces a variety of dry and oil cannabis products for medical use. It sells to online and through traditional sales channels to healthcare professionals and patients directly. The company boasts that it’s one of the cheapest cannabis options.
10. CannTrust Holdings Inc. ($803.159 million market cap)
CannTrust Holdings produces and sells cannabis for medical and recreational purposes. It sells dried and extracted products directly to consumers. It has an exclusive partnership with Apotex Inc, a Canadian pharmaceutical corporation.
11. TerrAscend Corp. ($688 million market cap)
This biopharmaceutical and wellness company cultivates, develops, and sells medical cannabis products under the Knüba Naturals brand, and offers support and education programs for patients and physicians.
12. Newstrike Brands Ltd. ($330 million market cap)
Newstrike produces and sells medical cannabis products (dried and fresh cannabis, edibles, vaping tools, seeds, plants, resin, and oil) under the brand name Up Cannabis.
13. Sunniva Inc. ($136 million market cap)
Sunniva produces medical cannabis products by purchasing plant matter and turning it into oils. It also runs a chain of medical marijuana clinics throughout Canada and sells custom white-label products throughout North America.
14. HEXO Corp. ($1.46 billion market cap)
HEXO Corp. produces, markets, and sells a variety of dried cannabis products. It also sells a unique cannabis oil sublingual mist product and a cannabis powder product. It serves medical and recreational segments and recently opened a facility in Greece to establish in Eurozone markets.
15. Cronos Group Inc. ($5 billion market cap)
This is an investment firm that holds equity in companies that are licensed to produce and distribute marijuana, or seeking their license to do so. This company typically seeks minority positions in its investments, but usually wants representation on the board.
16. Auxly Cannabis Group Inc. ($366 million market cap)
Auxly cultivates cannabis and develops cannabis-based products. It licenses its products to wholesalers and resellers across the entire cannabis value chain.
17. Valens GrowWorks Corp. ($391 million)
This biotechnology company researches and develops cannabis-based products, mostly oils. It also has a service laboratory division that analyzes and tests cannabis products.
18. Aleafia Health Inc. ($330 million market cap)
This company produces a large portfolio of cannabis products, including oils, sprays, and capsules. It also operates a network medical cannabis clinics and education centers.
Ready to get started investing? When you take our risk-free survey, we'll provide you with a personalized investment portfolio to suit your needs and provide you with expert advice along the way. What are you waiting for — get started investing with Wealthsimple.
A List of US Marijuana Stocks
Unlike Canada, marijuana is still federally illegal for recreational use in the United States even though it’s been legalized or decriminalized in several states, so there are some good investment opportunities.
1. Terra Tech Corp ($81.503 million market cap)
Terra Tech is a cannabis-focused agriculture company that produces hydroponic herbs and leafy products, and operates medical marijuana retail dispensaries under the Blüm brand which provides plant-based, extracted, and edible products.
3. Curaleaf Holdings ($4.47 billion market cap)
Curaleaf Holdings, Inc. is an integrated medical and wellness cannabis operator in the US that cultivates and distributes a variety of cannabis-based and CBD-based products, including oils, flowers, pre-rolls, lotions, tinctures, capsules, and edibles.
4. GW Pharmaceuticals ($5.373 billion market cap)
GW Pharmaceuticals is a biopharmaceutical company that develops and commercializes cannabinoid prescription medicines extracted from cannabis. It has license and development agreements with Bayer HealthCare AG, Almirall S.A., and Neopharm Group.
5. Harvest Health & Recreation Inc ($2.209 billion market cap)
Even though this company is headquartered in Vancouver, Canada, it cultivates, manufactures, and retails cannabis in the United States through a chain of dispensaries.
6. Cresco Labs Inc. ($1.333 billion market cap)
Cresco Labs manufactures and sells medical cannabis. It sells dry flower, cannabis oil, as well as capsule, oral, and sublingual productions. It also has a line of cannabis-infused edibles, including candies and chocolates.
7. Green Thumb Industries Inc ($2.365 billion market cap)
Green Thumb Industries manufactures and sells cannabis products to third-party retailers. It also sells some finished products directly to consumers through its retail stores under the Rise brand. It owns Rythm, Dogwalkers, The Feel Collection, Beboe, and other brands.
8. Liberty Health Sciences Inc. ($192.56 million market cap)
Liberty Health Sciences produces and distributes cannabis in Florida. It works closely with the Veterans Cannabis Project to support research into the treatment of service-related trauma with cannabis.
9. Charlotte’s Web Holdings Inc ($1.56 billion market cap)
Under the brand name Charlotte’s Web, this company produces and sells cannabidiol wellness products, such as topicals, tinctures, and capsules. It sells to wholesalers, retail stores, and through its website.
10. CV Sciences, Inc ($497 million market cap)
CV Sciences, Inc. has two segments: 1) A consumer products division makes and sells cannabis oil products for vaping, beauty care, and foods, as well as raw materials for resale, and 2) a pharmaceuticals division that uses cannabinoids to treat medical conditions.
11. Acreage Holdings, Inc ($2.133 billion)
Formally known as High Street Capital Partners, Acreage Holdings is an investment firm that focuses on the cannabis industry.
12. iAnthus Capital Holdings Inc ($718 million)
iAnthus owns and operates a chain of cannabis cultivation and processing facilities. It owns 21 dispensaries in 11 states.
13. TILT Holdings ($183.624 million market cap)
TILT Holdings is a diverse company that provides various products and services to other businesses in the cannabis space. It serves companies in the US, Canada, and Europe with various forms of cannabis, vaporizing devices, inventory and analytics systems, and marketing services.
14. Trulieve Cannabis Corp ($1.351 billion market cap)
Trulieve is a medical cannabis company that cultivates and produces its own products and distributes them through dispensaries in Florida. It sells smokable flowers, pods for vaporizing, topicals, tinctures, and capsules. It also delivers products to its customers’ homes.
15. Innovative Industrial Properties, Inc. ($869.858 million market cap)
This company is a real estate investment firm that focuses on the acquisition, ownership, and management of commercial properties for state-licensed medical-use cannabis businesses.
16. Planet 13 Holdings Inc ($240.729 million market cap)
This company produces and distributes medical and recreational cannabis in Nevada through its own high-end dispensaries. Its mission is to operate ultra-high-end dispensaries in tier-one markets nationwide.
17. Flower One Holdings Inc ($404 million market cap)
Through subsidiaries, Flower One cultivates and produces marijuana products for Nevada markets. It focuses on contract cultivation and wholesale sales. It owns a massive cultivation and production facility in Las Vegas and offers a range of cannabis products, including pre-rolls, oils, distillates and concentrates, topicals, and edibles.
18. MedMen Enterprises ($1.183 billion market cap)
MedMen cultivates, manufactures, and distributes cannabis produces for recreational and medical use. It has licenses for 69 retail stores and 17 cultivation/production facilities. It claims to be the single largest financial supporter of progressive marijuana laws at the local, state and federal levels.
19. MariMed Inc. ($676 million market cap)
MariMed provides consulting and ancillary services to cannabis facilities and brands, including design, development, operations, funding, optimization, production, dispensing, legal, accounting, human resources, and administrative services. It directly manages several cannabis facilities.