As marijuana continues to gather strength, these companies stand out in the market
Marijuana may still be illegal on the federal level in the U.S., but this isn’t expected to last much longer. As competition in the space increases, companies are looking for a way to attract additional capital ahead of any major legislative changes. These six are most likely going to launch an initial public offering (IPO) next year in order to find that capital.
California-based Dr. Kerklaan Therapeutics, which makes creams and sprays, has already said that the company will go public next year. The company has seen its revenues double since this past July, which is going to give it a lot of support for its IPO.
Another California-based company, Raw Garden out of Santa Barbara County, is the leading cannabis concentrate company in The Golden State. It is coming off a successful private placement and will use its IPO to grow its cannabis oil production.
Canada’s Cannalife Capital Corp. invests in or acquires cannabis and wellness companies. It closed on between “three to five” investments this past October and expects to see “significant consolidation in the cannabis industry” of which it wants to be a part.
Heading across the U.S. to Florida, Magical Butter is expected to begin trading on the Canadian stock exchange next year. The company makes blenders that allow users to create their own infusions, tinctures and, of course, butters and earned over $7 million in revenue last year.
Oregon-based Attis Trading Company is expected to launch an IPO at some point next year. It operates grow facilities and dispensaries in the state and is well-positioned to expand [its] footprint in the future once [it is] publicly traded.”
A company out of Chicago also could launch an IPO. Verano Holdings has cultivation facilities and dispensaries across six states and received an equity investment worth $88 million this past October. It asserts that its revenue increased 157% between 2016 and 2017 and estimated revenue growth is at 174% (estimated because it’s currently conducting financial audits). That IPO could be seen during the first quarter of next year.