While the cannabis industry is moving slower, the future looks brighter than ever
The cannabis industry will continue to grow and there are already hundreds of cannabis-related business looking to stay active and on top of the competition, and one of the resources needed to do so is funding. Saying that it was a bad year for marijuana stock is an understatement, with stocks losing over 50% of their initial value. But with the continued expansion of cannabis legalization across the US, more companies are considering going public with initial public offerings (IPO).
ManifestSeven is one of those companies looking into going public by the first quarter of the present year. ManifestSeven is a California-based integrated company that dispensaries and delivery services. It has no debt and it raised $22 million in its first fundraising. Another company that will be joining this list is from Oregon, but provides services to multiple states. Hempton USA produced over 2.5 million pounds of flower alone during last year’s season and it also has full extraction and processing capabilities that will make it more robust.
According to Michael Berger, founder of marijuana stock analysis company Technical 420, “Having access to more capital and being able to use your stock as currency to make acquisitions or investments and grow the business are the main advantages of going public.”
Another company, Pure Extracts, is a British Columbia-based company dedicated to cannabis extraction and it could be listing its public stock by the second quarter of this year. It has its own recognized brand that is working into selling privately in the short term. After that, another Canadian company might be following. Shelter operates three divisions, including a fully licensed facility in Canada, a production facility and Shelter brands that offer oils, flower and vapes.