The stunning success of Canadian cannabis stocks is no secret to sharp investors.

Canada’s fully legal “adult use” marijuana market throws the wild success of Canadian cannabis stocks into sharp relief…

In just the past year, Canopy Growth Corp. (NYSE: CGC) is up over 416%.

Cronos Group Inc. (NASDAQ: CRON) is up over 301% in that same time.

And Tilray Inc. (NASDAQ: TLRY), which only went public in mid-July, is up 577%.

These gains raise an important question: How can you make money on U.S.-based cannabis companies during this historic growth cycle?

After all, at about $8.5 billion, the United States cannabis industry is already larger than the Canadian market is projected to grow by 2022. And that growth isn’t going to slow down anytime soon – Arcview Market Research and BDS Analytics projects that cannabis spending in the United States will reach $23.4 billion by 2022, a 275% increase in just five years.

That’s an extremely conservative estimate, by the way, in that it assumes few, if any, additional states will legalize cannabis for recreational use. But because other states are coming on board and will likely continue to do so, other estimates have the market growing to $50 billion by 2022 – a 42.5% annual growth rate.

Yet there are no fewer than seven Canadian cannabis companies with a market value in excess of $1 billion, compared with only one U.S.-based outfit.

I’m looking for that to change – in a big way.

This will give you an idea of the size of the potential opportunity on our hands…

After Canada, Time for the U.S. Market to Shine

Several high-profile initial public offerings (IPOs) of U.S. cannabis companies will cause all cannabis stocks to increase in price. Even companies not involved in the IPOs will benefit because they will finally get the attention from the big investors who can send stocks soaring.

These companies will all list on Canadian exchanges, the friendliest in the world for cannabis operations… at least until the U.S. government de-schedules cannabis in the near future.

In May, MedMen Enterprises Inc. (CNSX: MMEN) showed a path to listing in Canada with a successful reverse takeover of a dormant Canadian company with a public stock listing. Now more U.S. companies are pursuing this and other options.

At least five significant U.S. players are slated to go public on the Canadian Stock Exchanges (CSE) in the coming months. And they’re taking various routes to get there.

  • Acreage Holdings almost surely will be the largest. Formerly called High Street Capital Partners LLC, Acreage is about one year into preparing a public offering of stock. Its name change to something a little more professional was part of its efforts. Acreage also made several acquisitions, beefed up management, brought in former House Speaker John Boehner as a spokesperson, and raised $119 million of capital from private investors. Acreage will go public in a traditional IPO.
  • Canadian operators Canopy Growth Corp. (NYSE: CGC) and The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) are taking a different route to the public markets for their planned U.S. operations. Both are spinning off pieces of the respective parent companies and offering existing shareholders the right to buy into the U.S.-based offspring. This is the most interesting way any of these companies is going public because the parent companies are telegraphing their view that the U.S. market is undervalued by limiting the initial capital raising to their existing shareholders, who they want to protect. What’s notable about both of these companies is the stunning success each parent has had in the Canadian markets. After all, Canopy enticing a $3.8 billion investment from Constellation Brands became the most noteworthy mainstream media story in cannabis history, fueling a two-week surge for more than a dozen of the industry’s biggest stocks. And at $115 million, TGOD’s IPO raised more money than any public offering before it. And that was all via retail investors, without the institutional markets.
  • One Colorado-based company with significant CBD and hemp holdings as well as a lofty endorsement from a medical celebrity will also go the traditional IPO route.
  • Two major dispensaries in the western United States, including one of the first legal operations in the world and another with rights to market the brand of one of cannabis’ most famed advocates, are planning on going public via the reverse takeover route. This will give them more liquidity than prior companies that tended to stay on the TSX Venture Exchange, a sort of slightly more formal version of the U.S. over-the-counter market. Soon after their listings, each will be issuing more shares to raise capital for acquisitions. You can count on that.

These Cannabis IPOs will be Unlike Any We’ve Seen Before

Legal weed is a unique industry.

In most industries, even the largest and most high-profile IPOs – e.g., Dropbox Inc. (Nasdaq: DBX) or Spotify Technology SA (NYSE: SPOT) – aren’t critical to any company except the one doing the IPO. For instance, Box Inc. (NYSE: BOX) doesn’t much care whether Dropbox is public or not. And investors looking to put a value on Box don’t need Dropbox – they’ve dozens of companies to which they can compare Box.

Cannabis is different for two reasons: First, cannabis is such a new industry, and it’s so different from the closest “similar” industries. Even when an economy-shaping company like Microsoft Corp. (Nasdaq: MSFT) did its IPO, there were other computer companies in the public markets. Because of the explosive growth coming to the industry, cannabis is without comparison.

Every IPO essentially “resets” the values in the cannabis industry.

Second, cannabis stocks have historically been underfollowed. IPOs will change that. Because of the unusual U.S. regulatory scheme surrounding cannabis, IPOs have historically been unavailable to cannabis companies. This left “reverse mergers” into penny stocks as companies’ primary option.

Now, not all penny stocks nor all IPOs are created equal. And I’m going to be tracking all of them closely. So stay tuned… because I’ll be back to teach you the all-important difference between a potential winner and a glorified scam.

Either way, a wave of U.S. companies going public on Canadian exchanges will draw new attention to the sector.

The combination of these factors will be explosive for existing U.S. cannabis stocks.

And when mainstream investors start looking at U.S. cannabis stocks, they’re going to find that no industry has grown as fast… not PCs, not the Internet, not automobiles back in the 1900s.

When conventional investors get a sense of the possibilities before them, the IPOs will soar. That’s especially true of institutional investors, who are frothing at the mouth to put enormous sums of money into growth opportunities.

Whatever the method, the IPOs of U.S.-based companies represent a watershed trend on the horizon. And it will benefit all of the companies and investors in U.S. operations.

You can take that to the bank… because that’s exactly what happened in Canada. At the beginning of Canadian medical marijuana usage, companies usually listed on the TSX Venture Exchange, a (slightly) more formal version of the U.S. over-the-counter market.

And we all saw how profitably that worked out.


30 responses to “The U.S. Cannabis IPO Wave Will Be a Massive Payday”

  1. DEAR SIR,


  2. Although you mention many IPOs to purchase, most platforms won’t allow purchase of stocks ending in “f”. This prohibits us from buying. I got lucky in my Ally account in buying Cresco before they shut it all down. Mjardin can’t be purchased and Interactive Brokers wont sell most of these IPOs from Canada !

  3. I don’t have a lot to invest however, I would like to invest in something with potentially large returns. Any suggestions?

  4. i am new to investing in stocks but i been using CBD for a couple years when i could longer take OPIOIDS for hip and knee replacement surgery pain. I only wish I had more knowledge and experience but I soon will have hopefully i hit the mark on the stocks to buy, thanks to NICI. RC Lewis

  5. DEAR SIR,

  6. Interactive Brokers is cheaper than and other Broker like- e- trade or fidelity and you can trade with any other market worldwide , Robinhood is only of US market unfortunately.

  7. The Cannabis Market is so exciting. I’ve been praying for new cutting investments and look at God this industry came to forefront!
    Looking for great things Success!

  8. Hi, I have been seeing a big gain in my stock recommended by NICI… Thanks… I hope for even better profits in other picks by NICI

  9. Do you have a site where I could look up definitions to all the lingo used in this website? And were do I find the replies to my questions?

  10. I’m new at buying any kind of stock so what’s the first thing
    I should do to buy Cannabis stock?

  11. I got my online trading account through my CIBC bank, I am so happy with all the information and help I have received. when If I need help with a question I’m able to phone or I can even chat with someone right online. the only problem I had was it took 3 weeks to get it up and running, it was so disappointing because I couldn’t purchase any stock during the month of January, I was told it was due to so many people becoming investors of their own stock. I found out today that I cant purchase OTC online I have to phone that in and they can buy it for me. I couldn’t believe what I was told, that if I wanted to buy OTC I would have to pay $50 or more depending on the guy who does it because they have to send the pink slip to my house so I have proof that I received the stock I was buying.
    at $50 a pop, I’m sure i am not going to be buying too many OTC at that price. Is this normal with other brokers?
    thank you GREG and other first-time investors for sharing all your great wealth of information.

  12. I am a 100% War Service Disabled Veteran. I am unable to invest more than 2K. Can you please advise me where to invest and I will do so NOW!! I am trying to provide for my wife and I.


  13. What is the preferred and most efficient route to get access to companies listed only on Canadian stock exchanges?

  14. thanks for all the great content. Wondering if the companies can provide discounts for CBD through NICI. Would be a good perk for members and testimonials. Marty

  15. Hi guys I just began to get understand that’s work and I try everything to read and I am very happy when I decide to become a member with you people. I never got investment in my life but whe I start reading your advice and articles a one year ago. I am very pleaaed to be part you guys.Thank for your work time to share this with all people aroind the world.Enos Da Silva

  16. . . . Well, I guess the Cannabis Stocks On the Exchange “Fluck’d”
    downward . . . . .some a good bit, . . . . that must be what is meant by the statement, “The Market has corrected itself”? . . . Interesting. Even a Cake has tuh’ Breathe while it’s baking. . . I Suppose. Hmmnmnm. . . . .
    Thank you Greg 4 keepin’ us honest! . . . . You’re quite amazing really.
    Sincerely GCH

  17. I’m just starting and looking forward for some good insight on the information
    to be passed on from the experts in the market…

  18. i want of benefit make payment by days.
    i hope have support me of this matter.
    thank you

  19. my name is Ivy Phillips I’m a disabled man that has extreme brain damage. I just can’t figure out how to invest. would someone please help.

  20. I am also new to investing and would like some advice on which broker is the best thank you very much Gabriel Y

  21. Are we going to receive Cannabis IPOs recommendations to invest then?
    I’m a new member & I got the Lifetime subscription to NICI.
    Thanks a lot.

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