Two Marijuana Producers Are Worth More Than Canada's Pot MarketBy
Two of Canada’s marijuana companies are now each worth more than the nation’s entire pot market.
Canadians spent C$5.7 billion ($4.6 billion) on medical and recreational marijuana last year, or about C$1,200 per cannabis consumer, Statistics Canada said Thursday. That’s less than the market value of Canopy Growth Corp. or Aurora Cannabis Inc. Both companies’ share prices more than tripled in the last year. Their market capitalizations are more than C$6 billion apiece.
The data comes one day after Aurora agreed to acquire CanniMed Therapeutics Inc. in a C$1.23 billion deal, the largest takeover in the country’s nascent weed industry.
While the recent run-up in cannabis stocks is being fueled by anticipation that Canada will legalize recreational sales by July, there’s still concern that some companies are overvalued. How Canada will set prices for marijuana remains unclear, and some publicly traded growers have yet to make a sale. Canada has at least 84 companies tied to marijuana that trade on its stock exchanges, with a combined market valuation of about C$36.9 billion.
— With assistance by Doug Alexander