Investing in Cannabis- 5 Companies to Watch
Investing in Cannabis is a tricky business. Drug dealers to business professionals both know there is a good amount of cash to be made in the cannabis business, the trouble is figuring out how. Before you go “all in” looking for the next Tesla, with cannabis stocks you could make lots of green on the green or you could get rolled and lose it all. We put together this little guide to point you to some companies that are currently looking for investors like you.
Some Tips for Investing
The risk is real – One of New Zealand’s biggest stocks dropped 27% in one day. For some investors that is the difference between making $3k at lunch to losing 7k by the time you drive home. This kind of drop can make for a rough day at the office, so make sure you follow the old adage “only put in what you can lose” or what your partner won’t kill you over.
Do your research– Someone smarter than us said “An ounce of prevention is worth a kilo of cure” or something like that. Taking the time to research into companies will really help you determine if the investment is right for you.
There are three easy ways you can invest- IPO stands for Initial Public Offering, which means that stocks in the company are available to the public via the stock market. These are the kinds of stocks you can buy on Sharesies and other popular apps. Cannalist (CBD.NZ) is an example of an IPO stock that is currently public.
Investing in cannabis can also be done privately, this type of investment is usually done before a company launches or if it isn’t big enough to be listed on the NZX stock exchange.
Lastly, is crowdfunding. This is a more modern method of raising capital but can involve some extra fine print so make sure you know what you’re buying before you end up with the stock version of something ordered off wish.com.
Companies to watch
Cannasouth is one of the most easily accessible players because they’re listed on the NZX stock exchange. They’ve posted some big gains, and losses over the last couple weeks and are definitely worth keeping an eye on.
Medical Kiwi is currently looking for wholesale investors via their webpage which states that the “The global opportunity that medicinal cannabis represents is estimated to reach USD $150 billion by 2025”.
Meraki Natural is currently raising fund to expand their hybrid greenhouse/electrical grow system. Expect some interesting things from Meraki soon.
You can register to be part of Puro’s next round. Their last crowdfunding campaign, raised the maximum amount – $4million – in less than 4 weeks.
Rua is set to become the next IPO so keep your eye, with an initial offering meant to drop by the end of the year. Rua has already signed an export deal with a German company to supply pharmaceutical-grade dried cannabis flowers.