Medical Cannabis was until recently a “dangerous and forbidden drug,” but in recent years it has been gaining legitimacy in many countries in the modern world – primarily for medical use, but also in the leisure market – and at the same time it is becoming a new hot commodity in the global capital market. Investment in Cannabis, in the right timing and market, yields particularly high returns to investors and contributes to the development of the global green plant market, and there are even a few Israelis on the big field.
One of the main areas that have grown in recent years is the cannabis revolution that is taking over the US and Europe, and the legitimization that the cannabis plant receives during the process is large cannabis companies traded on the capital market. Investing in such cannabis companies, especially at this time when the global cannabis market is relatively nascent and showing signs of rapid and significant growth, can be a very smart investment.
Investment in Cannabis is a relatively new concept, which did not exist until a few years ago, mainly before legalization in Colorado and Oregon (2014 – field implementation), and later in Canada and another 8 states in the US. Now, there are quite a few possibilities to apply investment in Cannabis, both in the medical field and in the leisure market, and to enter the game all you need is to learn some background material about the relevant companies.
So first of all, let’s start with the Israeli Medical Cannabis companies that are already trading.
Which Israeli cannabis companies are traded on the stock exchange?
Israeli Cannabis companies traded on the stock exchange include InterCure, BOLPharma, Teradata, Herodium, Cannabit, Pharmocene, Intellikana (formerly Tefen), WhiteSmoke, Nivo and others – are some of the companies that have seen the most significant growth rates in the last year.
Most of these companies are so-called “Bourses skeletons” – companies that exist mainly on paper but sometimes also operate a number of centers / laboratories / shipping services or packing on the ground, but in the past year a large proportion of them accumulate physical assets and government labor contracts with permits to grow, Process and sell cannabis to patients in Israel and abroad – and among these companies there are those like BOLPharma and Pharmocene that are already marketing cannabis to patients in Israel.
Although some of these companies have no actual activity on the ground, they have been accumulating in recent months a lot of investments based on forecasting their economic future, which is expected to be better with each month passing towards full implementation of the medical cannabis reform and export reform in the field. At this stage, all these companies are expected to hold significant assets and labor contracts, doubling and even tripling their value in a very short time.
Apart from Israeli cannabis companies, which are considered more accessible to Israeli investors looking for content that they know more closely, there are many other possibilities to invest in Cannabis companies in overseas markets.
Investment in cannabis is recommended
According to Forbes magazine, the value of the global medical cannabis market is estimated at $ 8 billion, and is expected to reach $ 31 billion before the beginning of 2021, according to the most modest estimates.
The optimistic forecasts are motivated mainly by rapid market growth, improvement and acceleration of medical research in the industry, a wave of agricultural farms being established every month, and of course many technological applications that join the research and production of the medical cannabis industry and make it partially high tech, Especially the future, sharply.
Therefore, not surprisingly, investment in recommended cannabis companies will be focused on the US market, or more correctly in the North American market, which includes the US and Canada, and follows a major index called the North American Cannabis Index.
Cannabis companies are recommending that investment value – apart from the large companies that control most of the market like Canopy and Aurora and are considered safe investments for the future – is worth consulting with experts. Anyone who is not proficient at reading and learning information from the stock market to improve investment may consider consulting an investment fund.
Due to the recent growth in the medical cannabis market, there are investment funds that are already focused mainly on investment in cannabis companies, and they will be able to give you a more accurate forecast of the nature of the investment you prefer.