With marijuana prohibition being knocked down left and right from state to state, investors are always curious to see which pot stocks may win big. Especially in Canada, as the country is set to legalize the drug recreation-ally in 2018.
Prime Minister Justin Trudeau’s administration has called to make Canada the first Group of Seven nation to make the plant legal by July of next year. Analyst Vahan Ajamian with Beacon Securities in Toronto commented, “Production is struggling to catch up. Then you throw on recreational in 12 to 13 months from now and obviously that’s going to give more traction for shareholders.”
All eyes are now on MedReleaf Corp.. who is behind the biggest IPO for a marijuana producer in North America and has raised C$100.7 million, or $75 million.
According to data from Bloomberg, MedReleaf, which is based in Markham, Ontario, has priced its shares at C$9.50 earlier this week. At that price, the company has a valuation of C$859 million. On June 7th when it starts trading, the stock would be the largest publicly traded medical marijuana company in Canada behind Canopy Growth Corp.
The only other pot producer to have an IPO in Canada was CanniMed Therapeutics Inc. which raised c$69 million back in December. Canopy and other companies have gone public via reverse takeovers.
Shares of MedReleaf will trader under the ticker LEAF on the Toronto Stock Exchange next week.