July 30, 2019
Christopher Liew, CFA
Industry giant Canopy Growth had a sterling IPO back on April 4, 2014, when the shares of the company began trading on the Toronto’s Venture Exchange (TSXV). On the first day, the stock closed at $2.59. The hype over marijuana was not as puffed up as it is today.
On October 15, 2017, or two days before the Cannabis Act became law, the price soared to $73.75. Investors who’d bought shares on IPO date and unloaded the stock on this day realized 2,747.5% gain. That’s outrageous and over the top.
Despite the supply shortages, distribution glitches, and controversies following the legalization of adult-use marijuana, investors remain absorbed in the cannabis industry. High returns and massive gains are expected given the market’s enormous potential.
With the upcoming marijuana IPOs, interest in the cannabis sector will be reignited. So, brace yourself, as these new entrants could make you rich.
New names to watch
There is no set IPO date yet for Breath of Life International, but trading could start within the year. The cannabis firm will be the first cultivator from Israel that will list on the TSX. The IPO is worth watching, as the country is a pioneer when it comes to cannabis research.
The company is known more as BOL Pharma and is Israel’s largest medical cannabis producer. Breath of Life hopes to penetrate the markets in Canada, Australia, and Europe. Medical cannabis and cannabis products will be sold in these markets. There are other products under development in collaboration with medical centres and research facilities across the country.
The annual production capacity target is 870,000 kilograms of dried cannabis by year-end 2020. The production will take place in Israel and Portugal. Breath of Life has 377,000 square feet of operational greenhouses and cultivation plus 65,000 square feet of accredited manufacturing operations.
This marijuana IPO could breathe new life to the cannabis industry when the symbol BOLP is formally listed on the exchange.
Nothing is definite about CannaLife Capital going public. However, the likelihood of listing on the TSX is strong. CannaLife has a different business model. The company acquires or invests in companies with premium brands and then forms a larger corporation. This would also be an interesting play.
Another IPO worth mentioning is Province Brands. The Canadian developer of cannabis beverages is slated to debut on the TSXV. Most of the major industry players, including Canopy Growth, first listed on the TSXV before graduating into the TSX.
Province Brands has collaborated with brewer Lake of the Woods to launch a non-alcoholic craft cannabis beer under the latter’s label. According to Dooma Wendschuh, Province Brands’s CEO and co-founder, the company is light-years ahead of the competition. The product will be the world’s first-ever beer brewed from cannabis.
Exciting times are ahead in the marijuana industry, as more names have filed to list on the TSX or TSXV. The cannabis stock IPO market can make investors rich.
Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.
This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.