Cronos Group, one of Canada’s largest medical marijuana companies, began trading last Tuesday on the Nasdaq.
This marks the first time ever a pot company’s stock is as easy to buy as Coca-Cola, GE or Apple.
“We’re the only pure-play marijuana company” on a U.S. exchange, says Cronos CEO Mike Gorenstein in a CNN report.
And a Nasdaq listing should quell any fears of legal implications.
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One Beacon Securities analyst notes, “The SEC would have gone through a very thorough review/vetting process before allowing a cannabis company to list on a major U.S. exchange.”
The main reason the SEC finds Cronos compliant is because they only do business in countries where marijuana is federally legal.
And securing a Nasdaq listing is not only a huge step forward for Cronos. It’s a huge step for the entire industry.
Speaking in an interview with Marijuana Business Daily, CEO Gorenstein notes the listing “shows the stigma is eroding.”
Great news for marijuana investors.
Cronos: Who They Are, What They Do
Cronos is one of Canada’s largest medical marijuana companies.
The company owns two medicinal marijuana and cannabis oil brands: Peace Naturals, in Ontario, and Original BC, in British Columbia.
Peace Naturals produces and sells medical marijuana and also cultivates cannabis oil.
Original BC cultivates and sells medical marijuana products.
The company also owns 21.5% in Whistler Medical Marijuana Company, according to their website. This makes its basket of product offerings extremely diversified.
As previously mentioned, the company only operates in 100% legal international markets. But this doesn’t mean Cronos is short on business.
The company has many partnerships abroad including in Germany with G. Pohl-Boskamp GmbH. as well as in Israel with Kibbutz Gan Shmuel.
Cronos is also working on a joint venture in Australia, as reported by Bloomberg.
And when the tide fully turns in the U.S., Cronos has a plan for that too.
Speaking to Marijuana Business Daily, Gorenstein notes:
“When it comes to U.S. market entry, the regulatory landscape can change a lot, and we feel it is heading in the right direction. We’ll be opportunistic and aggressive.”
The Impact to You
You can now access a major pot stock as easily as you would any other mainstream Wall Street play.
The stock lists as CRON on the Nasdaq and has a market cap of over $1.61 billion.
Since its listing the stock has seen a steady uptick, mirroring recent action for pot stocks across the board.
The stock opened trading last Tuesday at $8.24. As of its open today the stock goes for $10.22 a share.
Not a bad first week. Check out the chart:
Considering most stocks see significant short-term volatility after listing, Cronos’ first week is a strong sign of good things to come.
“It’s very significant for the company and the whole industry,” Gorenstein said in an interview with Bloomberg. “It’s a huge moment — just shows the stigma is continuing to erode on cannabis.”
I’m not saying run out and buy Cronos today, but it’s a stock worth watching.
More importantly, it’s proof positive there’s no sign of the marijuana industry losing steam.
And a huge slew of opportunities are coming.
This article originally appeared on The Daily Reckoning.