There has been significant news in the legal cannabis and medicinal marijuana sectors and that has driven many of the stocks significantly higher over the past few weeks. Canopy Growth has more than doubled in price. Here are five things that happened:
- The most important news IMO was the Constellation Brands / Canopy Growth news. The important dynamic here is that Goldman and BOA Merrill were both in on the deal. BOA financed it and Goldman advised. If these firms are involved it means that this is a legitimate industry now.
- In addition to that, the DEA took steps to dramatically increase the amount of legal cannabis that can be grown in the United States. This is for research purposes.
- Altria Group, one of the largest tobacco companies in North America, is assessing its market opportunities in the cannabis industry.
- Chicago-based Green Thumb Industries’ (CNSX: GTII) confirmed that Leon Cooperman, founder of Omega Advisors and former partner at Goldman Sachs, is a backer of the company – another signal that mainstream investors are playing bigger roles in the once-taboo marijuana industry.
- Marijuana will become legal in Canada as of October 17th.