Posted on

cbd oil companies to invest in

Top Marijuana Stocks for April 2021

CLIQ.TO, CARA, and GRWG are top for value, growth, and momentum, respectively


The marijuana industry is made up of companies that either support or are engaged in the research, development, distribution, and sale of medical and recreational marijuana. Cannabis has begun to gain wider acceptance and has been legalized in a growing number of nations, states, and other jurisdictions for recreational, medicinal, and other uses. Some of the biggest companies in the marijuana industry include Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and Tilray Inc. (TLRY). Many big marijuana companies have continued to post sizable net losses as they focus on investing in equipment to speed up revenue growth, which remains strong despite the economic disruption spurred by the pandemic.

Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically outperformed the broader market. MJ has provided a total return of 122.1% over the past 12 months, nearly double the Russell 1000’s total return of 66.1%. These market performance numbers and all statistics in the tables below are as of March 24, 2021.

Here are the top 5 marijuana stocks with the best value, the fastest growth, and the most momentum.

On March 31, 2021, New York passed a law legalizing recreational cannabis, expanding medical use, and decriminalizing possession of small amounts of marijuana, among other measures. Not all of these provisions will go into effect immediately and there is not yet a timeline by which all these measures will be fully implemented.

Best Value Marijuana Stocks

Value investing is a factor-based investing strategy in which you pick stocks that you believe are trading for less than what they are intrinsically worth, usually by measuring the ratio of the stock’s price to one or more fundamental business metrics. A widely accepted value metric is the price-to-earnings ratio (P/E Ratio). Value investors believe that if a business is cheap compared to its intrinsic value, in this case as measured by its P/E ratio, the stock price may rise faster than others as the price comes back in line with the worth of the company. These are the marijuana stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio.

Best Value Marijuana Stocks
Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
Alcanna Inc. ( CLIQ.TO) CA$7.90 CA$0.3 21.4
NIC Inc. ( EGOV) 33.81 2.3 33.5
Innovative Industrial Properties Inc. ( IIPR) 172.84 4.1 53.7
Village Farms International Inc. ( VFF.TO) CA$15.96 CA$1.3 61.2
Trulieve Cannabis Corp. ( TRUL.CX) CA$60.21 CA$7.2 85.9
  • Alcanna Inc.: Alcanna is a Canada-based retailer of alcoholic beverages and cannabis. The company operates liquor stores that sell wines, beers, and spirts, and retail cannabis stores. Alcanna employs about 1,800 people and operates 250 liquor and cannabis retail outlets.
  • NIC Inc.: NIC offers services to help governments use the Internet to provide services to citizens and businesses. The company is the nation’s largest provider of digital government services, sites, and secure payment processing. NIC also offers a platform for government licensing and regulation of the cannabis industry. The company serves more than 7,000 federal, state, and local government agencies throughout the U.S. NIC announced on February 10 that it has agreed to be acquired by Tyler Technologies Inc. (TYL) in an all-cash transaction valued at approximately $2.3 billion. Tyler Technologies is a provider of integrated software and technology services to local, state, and federal government entities. The transaction is expected to close in the second quarter of 2021.
  • Innovative Industrial Properties Inc.: Innovative Industrial Properties is a real estate investment trust (REIT) that engages in the acquisition, disposition, development, and management of industrial facilities leased to tenants in the medical cannabis industry. The company’s portfolio consists of specialized industrial and greenhouse buildings leased to state-licensed medical-use cannabis cultivators across the U.S.
  • Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing vegetables like tomatoes, bell peppers, and cucumbers, the company also produces cannabis. The company distributes fresh produce from over nine million square feet of Controlled Environment Agriculture (CEA) greenhouses in Canada and the U.S., as well as from partner greenhouses in Canada and Mexico.
  • Trulieve Cannabis Corp.: Trulieve Cannabis is a holding company that, through its subsidiaries, engages in the cultivation, possession, sale, and distribution of medical cannabis. Its products are designed to alleviate seizures, muscle spasms, pain, nausea, loss of appetite, and other symptoms associated with serious medical conditions such as cancer. The company operates 83 stores across the U.S., 78 of which are located in Florida, where it serves more than 450,000 patients. Trulieve recently announced that is has agreed to acquire Mountaineer Holding LLC, providing Trulieve with an additional cultivation permit and two additional dispensary permits. Trulieve agreed to acquire Mountaineer for an upfront payment of $6 million. The transaction is expected to close during the second quarter of 2021.

Fastest Growing Marijuana Stocks

These are the top marijuana stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.

Fastest Growing Marijuana Stocks
Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Cara Therapeutics Inc. ( CARA) 19.44 1.0 N/A 2,380
GrowGeneration Corp. ( GRWG) 45.81 2.5 100.0 152.6
NIC Inc. (EGOV) 33.81 2.3 73.3% 62.1
Jushi Holdings Inc. ( JUSH.CX) CA$8.23 CA$0.9 N/A 600.0
Cresco Labs Inc. ( CL.CX) CA$16.46 CA$3.6 N/A 314.9
  • Cara Therapeutics Inc.: Cara Therapeutics is a clinical-stage biopharmaceutical company focused on developing therapies primarily for the treatment of pruritus, a skin condition causing severe itchiness. The company owns several patents, one of which has claims to certain cannabinoid compounds. Cara Therapeutics has a number of drugs under development that are in various stages of clinical trials. The company’s EPS growth is not recorded in the table above because its earnings changed from negative in Q4 2019 to positive in Q4 2020, its most recent reported quarter and which ended December 31, 2020.
  • GrowGeneration Corp.: GrowGeneration is a distributor of agricultural products. The company operates retail hydroponic and organic specialty gardening retail outlets. It offers thousands of products, including plant nutrition, farming soils, advanced lighting technology, hydroponic and aquaponic equipment, and more. As one of the largest hydroponics suppliers in the country it owns and operates 52 retail and distribution centers. GrowGeneration recently announced the appointment of Jeffrey Lasher to the role of chief financial officer (CFO), effective April 15, 2021. Mr. Lasher has previously served as CFO at several other companies, including West Marine Inc. and Crocs Inc. (CROX).
  • NIC Inc.: See above for company description.
  • Jushi Holdings Inc.: Jushi Holdings is a holding company focused on building a portfolio of branded cannabis and hemp-based assets. The company is engaged in retail, distribution, cultivation, and processing operations. Its brands include: The Bank, focused on plant genetics and cultivation; The Lab, specializing in vape products and concentrates; Nira, maker of hemp-based CBD products that are physician formulated; Nira+, producer of medicinal THC products; Seche, offering various branded ground and flower cannabis products; and Tasteology, a provider of THC-infused products. Jushi’s EPS growth is not recorded in the table above because its earnings changed from positive in Q3 2019 to negative in Q3 2020, its most recent reported quarter and which ended September 30, 2020.
  • Cresco Labs Inc.: Cresco Labs is a consumer-packaged cannabis products company involved in growing, manufacturing, and distribution. The company operates in nine states, owns production facilities and dispensaries, and holds 29 retail licenses. Its brands include Cresco, Reserve, Remedi, Mindy’s, Good News, High Supply, Wonder Wellness Co., and FloraCal Farms. Cresco’s EPS growth is not recorded in the table above because its earnings changed from negative in Q3 2019 to positive in Q3 2020, its most recent reported quarter as of March 24, 2021 and which ended September 30, 2020. The company recently announced that it has agreed to acquire Cultivate Licensing LLC and BL Real Estate LLC (collectively known as Cultivate), a Massachusetts-based vertically integrated operator, for upfront consideration of $90 million and an earnout of up to $68 million. The transaction is expected to close in Q4 2021.

Marijuana Stocks with the Most Momentum

Momentum investing is a factor-based investing strategy in which you invest in a stock whose price has risen faster than the market as a whole. Momentum investors believe that stocks which have outperformed the market will often continue to do so, because the factors that caused them to outperform will not suddenly disappear. In addition, other investors, seeking to benefit from the stock’s outperformance, will often purchase the stock, further bidding its price higher and pushing the stock higher still. These are the stocks that had the highest total return over the last 12 months.

Marijuana Stocks with the Most Momentum
Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
GrowGeneration Corp. (GRWG) 45.81 2.5 1,180
Amyris Inc. ( AMRS) 18.76 5.0 772.6
Jushi Holdings Inc. (JUSH.CX) CA$8.23 CA$0.9 648.2
Aphria Inc. ( APHA) 17.45 5.5 546.3
TerrAscend Corp. ( TER.CX) CA$13.15 CA$2.3 517.4
Russell 1000 N/A N/A 66.1
ETFMG Alternative Harvest ETF (MJ) N/A N/A 122.1
  • GrowGeneration Corp.: See above for company description.
  • Amyris Inc.: Amyris produces and distributes products that serve markets for specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, pharmaceuticals, and nutraceuticals. The company is also working on developing and producing cannabinoid products. Amyris announced in the second half of February positive pre-clinical results for its RNA COVID-19 vaccine platform. The company announced in October 2020 that it had entered into a collaboration agreement and exclusive license with the Infectious Disease Research Institute to advance a novel RNA vaccine platform and develop a COVID-19 vaccine.
  • Jushi Holdings Inc.: See above for company description.
  • Aphria Inc.: Aphria is a Canada-based licensed producer of medical cannabis products. Its medical cannabis is 100% greenhouse grown, allowing its plants to benefit from natural sunlight. The company’s products include oils, softgels, oral sprays, and cartridges. Aphria has scheduled a special meeting of shareholders on April 14, 2021 to approve a previously announced business combination with Tilray. Tilray is scheduled to hold its own special meeting of stockholders on April 16, 2021 to approve the merger. The agreement to combine the two companies was announced in December. The combined company would operate under the Tilray name and would be worth approximately $3.9 billion, based on the companies’ share prices on December 15, 2020. The merger agreement is expected to close during the second quarter of 2021.
  • TerrAscend Corp.: TerrAscend is a Canada-based integrated cannabis company offering a range of products, brands, and services for the global medical- and adult-use cannabis markets. Its portfolio of businesses include: The Apothecarium, a cannabis dispensary; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ilera Healthcare, a medical marijuana cultivator, processor, and dispenser; Valhalla Confections, a manufacturer of cannabis-infused edibles; and more. TerrAscend recently announced that Jason Ackerman was stepping down from his roles as chief executive officer (CEO) and executive chairman, effective March 23, 2021. Jason Wild, the company’s chairman, assumed the executive chairman position. Wild said that differences over management style and culture led the board to decide to part ways with Ackerman. TerrAscend is looking for a new CEO.

The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

These are the marijuana stocks with the best value, fastest growth, and most momentum for April 2021.

UK cannabis companies and shares to watch

Following the 2018 UK legalisation of medical cannabis, some marijuana companies have listed in the UK. Explore details on UK cannabis stocks: from how you can buy and sell stocks, to regulation and the top stocks to watch.

What’s on this page?

  1. How to trade and invest in UK cannabis stocks
  2. Best British marijuana stocks to watch
  3. Other UK cannabis stocks to watch
  4. Cannabis in the UK: what you need to know
  5. What is the future for cannabis in the UK?
  6. IG Cannabis Index: trading a basket of stocks

How to trade and invest in UK cannabis stocks

With us, you can trade UK cannabis stocks with spread bets and CFDs or invest via share dealing.

Steps to trading or investing in cannabis

If you’re ready to start trading or investing in cannabis company shares, you can take a position in three steps:

1. Choose whether you want to trade or invest 2. Decide on a cannabis asset 3. Open a live account
Consider the differences between trading and investing and choose the one that interests you Make a selection from cannabis stocks and EFTs, or our exclusive Cannabis Index 1 Complete our online form to create a spread betting, CFD trading or share dealing account

You’ll trade stock of cannabis companies on leverage. This means that you do not have to commit the full value of the position. Instead, you’ll only pay a deposit – called margin – but you’ll have full exposure to the underlying asset. Note that while leverage can increase your potential profits, it can also increase your potential losses.

Leverage isn’t available for investments – so you’ll have to commit the full value of your position upfront. But, this also caps your maximum risk at the initial cost of your position. Keep in mind though that investments can rise or fall in value, so you might receive back less than you initially invested.

Best British marijuana stocks to watch

Although there are plenty of hurdles for cannabis companies to overcome, several cannabis-related businesses have already listed in the UK. Most of the ‘cannabis companies’ listed on the London Stock Exchange (LSE) and the Alternative Investment Market (AIM) are not pure plays, meaning they have other activities outside of marijuana.

Most smaller pure play stocks in the UK are listing on the Aquis Stock Exchange (formerly NEX Exchange), which is known as AIM’s younger brother and designed for small businesses looking to raise smaller amounts of money from the public.

Below, we explore the top UK cannabis stocks that you can trade with us, and we explain how you can gain broad exposure to the market rather than ploughing your cash behind one individual stock. There are measures you can take to manage risk accordingly. So, it is essential that you are aware of risks before taking a position.

1. Kanabo

Kanabo develops medical treatment products such vaporisers and a range of non-smoking consumption solutions. With a significant focus on research and development, the company is working towards growing its innovative solutions even more.

Founded in 2016, Kanabo became the second medical cannabis company to list on the LSE. After its February 2021 listing, the company secured its first UK distribution agreement. Kanabo has operations in Israel and the UK.

2. Cellular Goods

Cellular Goods recently listed, with the backing of retired soccer star, David Beckham. Since its inception in 2018, the company has focussed on cannabidiol (CBD) wellness products with benefits that include inflammation reduction, skin protection and pain relief.

Cellular Goods innovatively uses biosynthesis to source active ingredients for its products, which is a quicker and greener alternative to traditional processes.

3. GW Pharmaceuticals

GW Pharmaceuticals is the undisputed leader in the UK medical marijuana space. The firm was founded in 1998 and listed on AIM in 2001, before it left London to join the NASDAQ in 2013.

Over the past decade, GW Pharmaceuticals has developed two of the world’s leading cannabis-based treatments and has grown into a company worth over $6 billion – larger than the main North American cannabis stocks such as Aurora and Tilray.

Sativex, a GW Pharmaceuticals product, is a spray containing both CBD and THC that is used primarily to treat certain types of multiple sclerosis (MS). It has been authorised in over 25 countries, including the UK. However, GW Pharmaceuticals does not market the product itself.

For example, in the UK it’s marketed by Bayer. Its second product, Epidiolex, is used to treat severe forms of epilepsy.

4. Associated British Foods

Associated British Foods (AB Foods) is a diverse company consisting of a variety of agricultural and ingredients businesses, such as sugar and corn, as well as its clothing retail arm, Primark. But it’s less known that the company is also one of the UK’s largest producers of legal cannabis.

It has converted a large amount of capacity in Norfolk to produce CBD-based cannabis rather than tomatoes, which is supplied to GW Pharmaceuticals to make its medical treatments, specifically Epidiolex.

5. Futura Medical

Futura Medical is a research and development business, based in Guilford, that specialises in producing transdermal technologies (essentially gels and creams) that can be used to deliver medicinal treatments through the skin.

It calls its transdermal technology DermaSys, and its lead product helps with erectile dysfunction. In 2019, Futura Medical established a joint venture with CBDerma Technology to explore how its transdermal system could be used to make cannabis-based products for patients. Together, the companies developed the ‘CBD 100’ gel – a patent application was filed for the formulation in August 2020. The companies, in partnership, are now exploring commercial avenues for the product.

6. AfriAg

AfriAg is primarily a logistics firm serving the agriculture industry across the world. In 2017, the company announced that it would be entering the medicinal cannabis market.

The company has since applied for a licence to cultivate and manufacture cannabis in the UK. AfriAg has also acquired 2.68% of Apollon UK, which has a fully licensed subsidiary (Apollon Formularies Jamaica Ltd) that is licensed to cultivate, process, research, develop and sell medical cannabis.

AfriAg is working on acquiring the remaining share capital of the company. It’s also working on satisfying all regulatory requirements for the acquisition.

7. DeepVerge

DeepVerge is a vertically integrated business, meaning that it manages its value and supply chain through ownership of, and collaborations with, its suppliers and distributors. It collaborates with artificial intelligence (AI), clinical research, water technologies, medical device and life science businesses companies to provide technology for comprehensive skin-care, health-care, pharmaceutical and cosmetic product testing.

DeepVerge’s CBD products include pain relief creams and wound dressings with anti-inflammatory and pain relief properties.

8. Zoetic International

Zoetic International, listed on the LSE, transformed itself into a vertically-integrated CBD business, having previously been an oil and gas company named Highlands Natural Resources.

After discovering gas in Kansas, US, the company found it had high purity levels of nitrogen and high concentration of hydrogen – which together have been used to make a fertiliser being used in a pilot project to improve yields at a cannabis growing facility.

The company sells products in the UK, Europe and the US. These include CBD oils, gels, cosmetic products, vapes and chew pouches. Product availability is subject to local regulations.

9. Sunrise Resources

Sunrise Resources is another natural resources company that has found itself chasing the momentum behind legalised cannabis. The company is developing a mining project in Nevada, US. It’s hoping to produce pozzolan, used in cement and concrete, and horticultural-grade perlite.

It’s planning on supplying the product to cannabis growers in the US, which mines less perlite than it needs, meaning it has to import the rest, mostly from Greece. So, Sunrise is hoping to benefit from that deficit. The company said that demand for horticultural perlite ‘has been invigorated by the growth in cannabis cultivation’ in the US and Canada.

Other UK cannabis stocks to watch

There are other UK-listed cannabis stocks to watch, and some of them offer greater direct exposure to the legal marijuana market. These include:

  • Freyherr International has said is a ‘profitable, vertically integrated medicinal cannabis company operating in Slovenia
  • Sativa Group is a seed-to-sale business focused on CBD products for the medicinal and wellness markets
  • Ananda Developments is an investment firm that backs cannabis companies, including iCan Israel-Cannabis and Liberty Herbal Technologies. It also provides a platform for investors to gain exposure to the cannabis sector
  • Cash shell Spinnaker Opportunities is in the process of buying Kanabo Research, which helps formulate medicinal cannabis and over-the-counter products, as well as sells a pharmaceutical-grade vape pen

Cannabis in the UK: what you need to know

The UK’s attitude toward marijuana has changed dramatically over the last decade. Even though the UK has become the world’s largest legal medical cannabis producer, the drug is still illegal for recreational use.

According to a 2020 report by the Crime Survey for England and Wales (CSEW), around 3.2 million people had taken the drug over a one-year period – that is around 5% of the UK’s population – valuing the country’s black market at well over £5 billion.

Marijuana regulation in the UK

The UK’s regulatory stance toward cannabis is complex and, in some cases, contradictory. Medicinal cannabis was legalised in November 2018, following several high-profile cases about children with severe forms of epilepsy being unable to access potentially life-changing cannabis-based treatment.

Yet, access to legal medicinal marijuana remains extremely limited. It cannot be prescribed by your average general practitioner (GP), only by those listed on the Specialist Register of the General Medical Council.

The cannabis being prescribed is grown around CBD – the medicinal component – and must contain as little THC – the psychoactive element – as possible (below 0.2%). Public perception is improving and although the number of doctors able to prescribe medicinal cannabis is growing, they are not being encouraged to give it to patients.

The response from the medical community has been underwhelming. Institutions like the Royal College of Physicians and the British Paediatric Neurology Association have said cannabis should only be prescribed as a last resort, while the UK National Institute for Health and Care Excellence – which effectively chooses what drugs can be funded on the National Health Service (NHS) – have also imposed strict guidelines for prescriptions.

There is only a handful of conditions that doctors will consider treating with cannabis, including multiple sclerosis, epilepsy and to help alleviate the effects of chemotherapy treatment. And when someone is suffering from one of these conditions, doctors are effectively directed to try every other possible treatment before prescribing cannabis.

Recreational cannabis is still illegal in the UK under all circumstances.

UK cannabis exports

While the government’s tone implies it does not have great belief in the medicinal applications of marijuana, a few select firms are allowed to legally grow and produce cannabis. In fact, a report released by the UN’s International Narcotics Control Board in 2018 found that the UK is the world’s largest producer and exporter of legal medicinal cannabis in the world.

The UK government doesn’t disclose the list of companies that can legally produce marijuana on British soil, but we do know that only three pharmaceutical cannabis products are licensed in the country. Sativex and Epidyolex are produced by GW Pharmaceuticals, and Nabilone is produced by Eli Lilly & Co. Outside of the medical applications, the UK has also laxed its rules on CBD and hemp oil. Again, these must contain less than 0.2% THC. These oils can be bought legally in the UK, but they have been banned from making any medical claims without obtaining a medical licence, which is expensive to obtain.

This means the majority of those offering CBD or hemp oil can’t claim the products offer any medicinal benefits. This has created a further grey area in the market and has forced many producers to rely on informal marketing techniques, such as word of mouth, to flog their oils.

UK’s indecisiveness on marijuana

It’s clear that the UK government remains undecided when it comes to legalising cannabis. It is quite happy to profit from the vast amounts of legal medicinal cannabis being produced legally by a small handful of companies.

While medicinal cannabis is exported to other countries, it’s still very difficult for UK patients to gain access to the handful of legal treatments available. This highlights contradictions in the government’s policy, which could cause further problems for an industry still in its infancy.

A potential consequence could be inadvertently creating a monopoly among the handful of licensed producers. GW Pharmaceuticals has already become the unrivalled leader in the UK and the fact that it has teamed up with other UK producers, like AB Foods, shows how little competition there currently is.

The stringent rules, high costs and complex regulation means there are high barriers to entry. This could lead to new start-ups setting up shop elsewhere, in more favourable jurisdictions, like Canada. For example, there has been a debate over how UK-based investors can gain exposure to legal cannabis firms at home or abroad, and not fall foul of anti-money laundering laws when receiving dividends or income.

This is also causing companies to delay going public because they fear operating in a grey area of regulation. Likewise, some investors are wary of backing operations that might be illegal.

David Barfoot, director at Rize ETF recently stated that “Due diligence on medical cannabis companies is capital and labour intensive”.

What is the future for cannabis in the UK?

The UK’s approach to medicinal cannabis is more complex than in other nations. While the UK produces and sells medicinal cannabis to other countries, it’s not easily accessible in the UK . The country has taken a tentative step toward legalisation – for now, it has only legalised medicinal cannabis in name.

Legalisation has been featured prominently in electoral campaigns by the likes of the Liberal Democrats and the Green Party. Even the institutions that have so far proved a roadblock to widespread access have changed their views – eg the Royal College of Psychiatrists has said it’s willing to reconsider its view.

Still, there have been concerns that progress in the UK could stagnate, especially with all the political energy that was consumed by Brexit. However, if ignited, the flame could catch quickly. Germany was in a similar position to the UK a few years ago but has now grown into the largest medicinal cannabis market in Europe. Since legalising medicinal cannabis in 2017, Germany has allowed big North American companies, like Aphria and Aurora, to set up shop in the country and cultivate cannabis.

While the UK has established a large production base, it has concentrated it among a handful of businesses, meaning other countries could become manufacturing hubs for the European market rather than the UK. Germany offers both a domestic market and the potential to export, while the UK only offers the latter in addition to the far and few between prescriptions.

The same is true for investors and financiers which, keen to tap into the momentum building before it’s too late, will flee to where the regulatory environment is more favourable.

The opportunity on offer is huge. Prohibition Partners estimates the UK’s medicinal cannabis market could be worth over £7.8 billion by 2028. Plus, estimates show that a recreational market could represent a bigger opportunity, with a forecasted value of £8.5 billion.

That means the total value of a fully-legalised cannabis market in the UK could be over £16 billion within less than ten years.

IG Cannabis Index: trading a basket of stocks

One option for traders keen to capitalise on the rising appetite for cannabis stocks is to take a basket approach. For example, you can trade the IG Cannabis Index, which tracks the top 20 largest publicly listed cannabis companies in North America. This allows you to spread risk and trade the industry as a whole.

Don’t miss your opportunity on cannabis markets

  • Take advantage of volatility in this rapidly growing market:
  • Go long or short on cannabis shares, ETFs or our cannabis index
  • Get 10:1 leverage on our cannabis index, and from 4:1 on cannabis stocks
  • Protect against risk with stops and other tools

1 The IG Cannabis Index is only available on spread betting and CFD accounts.

The UK has taken tentative steps toward legalising cannabis but has a long way to go before embracing marijuana like other nations. We have a look at the UK cannabis sector and the top UK marijuana stocks.