February 27th, 2018 now marks a huge moment in the history of cannabis, and more specifically, its legitimacy in society. For the first time, US traders on Wall Street can grab a piece of the pot, so to speak. The Nasdaq Stock Market is now listing shares for a Canadian cannabis company called Cronos Group Inc.
Cronos is already establishing itself as a leader in the blooming cannabis industry. Their production operations based in Toronto, Ontario, Cronos is also a distributor to Germany-based G. Pohl-Boskamp GmbH, and has partnered to build a legal grow in Israel. They have also received a license in Australia.
“There may be opportunities to team up with big companies in those spaces. Constellation Brands Inc., which sells Corona in the U.S., last year made a direct investment in Canopy Growth, one of Cronos’s competitors. A bigger partner can help capitalize on the industry’s enormous growth potential over the next few years.
“‘We’re driving to go from zero to Pepsi in two years,’ Gorenstein said. ‘That’s quite a bit to do without any help, so having partnerships — whether it’s an investor, distribution, joint development with alcohol and pharmaceutical companies — is very, very helpful.’
“Gorenstein’s legal background has kept the company rooted in compliance, he said. Federal illegality in the U.S. is what drove Cronos’s founders to locate and expand the company in Canada, where the plant has been federally legal for medical use since 2001. Still, Gorenstein said he hopes Cronos’s listing will bolster companies on both sides of the border.”
Legal cannabis is expected to be a $31.4 billion market by 2021 at the international level. While the is US currently responsible for 90 percent of global cannabis sales, that number is expected to drop to 57 percent in the same time frame.
Now that we have a clear example of how the cannabis industry can legitimately, not to mention successfully, be incorporated into existing financial systems, perhaps this will signal some more politicians to take the plant more seriously as well.