Canadian Medical Marijuana producer valued at $635 million
Investors know that it would be hard to find an industry with the growth potential that medical marijuana has. Predictions have been made that estimate the industry's growth anywhere between 23% - 27% annually over the next decade. According to ArcView Market Research there were $46 billion in black market marijuana sales in 2016. The potential to change these sales from illegal to legal also represents a potential for massive growth. Many marijuana related stocks with valuations over $200 million have doubled, and even tripled, within the past year and are expected to increase even more over the oncoming years.
On Tuesday May 30th, investors witnessed the largest North American marijuana stock IPO ever. Ontario-based company, MedReleaf (TSX:LEAF), raised $75 million by pricing an IPO at $7.03 per share. The IPO values MedReleaf at approximately $636 million, making it the largest North American marijuana stock IPO of all time. Investors are particularly interested in the Canadian company because of the country's growing use of marijuana for medical purposes as well as the possibility of the government making it legal for recreational use by the summer of 2018.