Marijuana Bubble Worries Grow in Canada After Two-Year Rally
- Country seen as pure-play market as capital floods in
- On track to become first in G7 to make recreational use legal
Will Canada Become First G7 Country to Legalize Pot?
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The surge of capital into Canada’s nascent marijuana industry has sent stock prices soaring -- and brought warnings it’s a bubble that could soon burst.
The value of 26 marijuana stocks listed in Canada has swelled to almost C$4 billion ($3 billion) from close to nothing in the past two years, as investors rushed to bet on the country’s move toward legalizing recreational use. Canopy Growth Corp. became the first marijuana unicorn, reaching a valuation of C$1.24 billion on Wednesday. Other producers, including OrganiGram Holdings Inc. and Aurora Cannabis Inc., saw their share prices surge more than 250 percent this year.