With attitudes changing and countries seemingly pass new legislation each month it appears Wall Street has the newly corporate cannabis technology industry in its sights.
For investors, the Green technology industry reflects a once in a lifetime opportunity as it is an entirely new market with tens of millions of consumers. Also, with a recession looming, the legal cannabis industry is believed to be immune to downturns in the economy, similar to alcohol.
As a result, investors are looking for the most technologically innovative companies to add to their portfolios.
We thought it would be useful to detail 5 companies that are most likely to become hot stock picks over the next few years.
Pax Labs in one of the hottest cannabis start-ups and over the last few years they have built a loyal following as a result of designing some of the most attractive and stylish dry herb vaporizers. They are affectionately called ‘The Apple’ of cannabis accessories.
Having already raised $20 million in venture capital, Pax Labs now has its eyes on going public on a major stock exchange by 2020. The company’s executives are already in deep discussions with the Canadian Securities Exchange and according to Bharat Vasan the feedback from banks has been “overwhelmingly positive”.
Wall Street will be hoping to capitalize on Pax’s switch from being a hardware company to a more profitable and consistent subscription model. Essentially, they hope for their vaporizers to be the ‘Nespresso Coffee Machine’ of the Green-Tech industry.
GW Pharmaceuticals is a British biopharmaceutical company known for its research and production of medicines derived from cannabis.
Both their flagship products Sativex and Epidolex have been approved by governments to treat pain and epilepsy respectively.
GW Pharmaceuticals actually listed on the AIM, the junior of the London Stock Exchange in 2001 but raised eyebrows amongst investors when they listed on the NASDAQ in 2013.
One of their main market advantages is that they’re one of the only companies in the UK to have a full license for the distribution and sale of cannabis.
Controversially, their biggest investor is Capital Group which is part owned by Phillip May, the husband of UK Prime Minister Theresa May.
Storz & Bickel
Storz & Bickel are virtual royalty within the green tech industry. Their vaporizers, The Mighty and Volcano set a standard for performance and precision engineering. Adding to their prestige is that own the only commercially available products that are officially recognized as medical devices by government bodies.
Their success has also not gone unnoticed by Wall Street. In December 2018 they agreed on a deal to be purchased by the Canopy Growth Corporation.
Canopy growth is a conglomerate of multiple cannabis focuses brands. Have enjoyed immense growth and were listed on the stock exchange since 2014 are listed on the New York Stock Exchange.
Charlotte’s Web produces hemp derived CBD products and by market share is the biggest company in the market today.
The company was named after Charlotte Figi who suffered from epilepsy at an early age. Treatments recommended by her doctor did little to help so as a last resort, her parents began treating her with cannabis and to their surprise it worked and the seizures stopped!
Because the CBD Vape Juices made by Charlotte’s web are derived from hemp and not cannabis they have zero psychoactive effects which make it a perfect treatment for children.
With the legalization of industrial hemp, Wall Street is expecting the company to list to a major stock exchange. Also, interstate commerce is set to be approved by the FDA in 2019 – a brand like Charlotte Web would benefit exponentially from this.
KushCo have one of the biggest and diverse product ranges of any green rush company and have expanded into pretty much everything cannabis related.
The company’s product offerings currently rely on US states that have made cannabis legal and they received a massive uptick when California went green in 2017.
With more states putting legislation to adopt recreational cannabis the sky is seemingly the limit for a company already doing $1m a week!