Marijuana companies in North America are experiencing lots of trouble, and companies that are looking to reap profits from cannabis are suffering from significant losses. In the meantime, European companies such as World High Life PLC are basking in the new opportunities brought by the emerging marijuana industry.
The marijuana sector needs a fresh look because its markets remain unattractive despite the changes in equity valuation and investor attitudes.
Canopy Growth holds the blue-chip marijuana market leader position. Before Constellation Brands Inc. acquired its first stake in 2017, Canopy Growth had already secured a significant amount of funds. A few days before marijuana was legalized in Canada; Canopy Growth shares increased by $55.45 (C$73.75). However, the stock price has dropped by 73% since then, and within the past six months, the company recorded the highest losses ever.
Canopy Growth shares were valued at $18 billion (C$24 billion) by the stock market at the end of April 2019. At the moment, the value at the stock market has dropped to less than $5.2 billion (C$7billion). Compared to the first quarter, the company’s sales were down 15% in the second quarter.
Apart from Canopy, other companies suffering from the downturn in marijuana market are Aphria Inc. whose shares have fallen 59% since April, and Aurora Cannabis Inc. whose shares have fallen 76% since the end of the first quarter of 2019. In the marijuana sector, companies are struggling with declining liquid assets, expensive operations, and shareholder attenuation.
On Tuesday, some pot stocks recorded a rise. Companies like the Horizons Marijuana Life Sciences (ETF), which holds dozens of marijuana stocks recorded a 4.9% increase in stock trading. This suggests that investors are beginning to see the opportunities in marijuana stocks. Canopy stock also recorded a rise of $1.53, which is equivalent to 8.2%.
The marijuana market in North America is struggling with a fall in stock prices and surplus marijuana; however, the investors are investing more and more in the European emerging marijuana industry since they do not want to miss out on the new opportunity.
In a few years, the new frontier market in Europe may become the most significant market around the globe. It is estimated that by 2029, the medical marijuana market in Europe and the UK will be worth approximately $64.2 billion (£58 billion).
One of the companies that have taken full advantage of the emerging cannabis market in the UK is the World High Life PLC. The company plans to become a world leader in the global medical cannabis market as the industry evolves in the UK and Europe.
World High Life PLC finds and purchases marijuana companies in the UK and different European countries, thus creating a portfolio of companies with the capability of being top players in the marijuana industry. Investors are aware that buying a single stock in WHL gives you access to all the shares in the company.
The new frontier market gives investors and organizations a new chance to invest in the marijuana industry since they did not initially invest when marijuana was first legalized in Canada.
Experts think it may not be long before we witness an influx of companies like No Borders Inc. (OTC: NBDR) and Canopy Rivers Inc. (TSX: RIV) (OTC: CNPOF) into the European market as a way of getting a piece of the offshore marijuana pie.
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