With the growth in the legalization of cannabis, it should come as no surprise that the number of public cannabis companies is also growing. Even within the United States, where marijuana is illegal at the federal level, enough states have legalized it to encourage many public companies to appear. This is even truer in Canada and other areas where marijuana is now legal.

Those interested in cannabis may want to learn more about these public cannabis companies. At the very least, glancing at the history and goals of the companies can give you an idea of the future of the industry and what to expect from cannabis in the future. Those looking for other ways to support the cannabis industry may even want to invest in some of these companies since they are publicly traded. That type of investment has the potential to gain profits as marijuana becomes more accepted, both legally and socially.

The most significant difference between the public cannabis companies in the United States and Canada is the legal framework in which they operate. Now that cannabis is fully legal in Canada, companies are better positioned to thrive.

In contrast, in the United States, companies must still deal with patchwork legality where marijuana is legal in some states and not in others. This creates additional complications for the companies, as they must adhere to federal laws. It also makes things like securing business loans and banking more challenging as the lack of legality causes service providers and financial institutions to label cannabis companies as high risk.

It is also important to note that the lack of legality of cannabis at the federal level in the United States leads to restrictions on stock exchanges in the country. Specifically, companies on the New York Stock Exchange cannot have direct involvement with the United States marijuana market via actually touching the cannabis plant.

It is interesting to note that until the last year or so, the Canadian companies mostly accounted for the major players in public cannabis companies. This includes them having a dominating presence on the United States’ stock exchanges, including the NASDAQ, at least when compared to American companies.

Recently, however, a change has begun, and, starting around a year or so ago, more American companies have begun making their way into the Canadian public markets. This trend began in mid-to-late 2018. They all arrived at the Canadian Securities Exchange (CSE). It is important to note that the Toronto Stock Exchange (TSX) is more extensive but does not list companies holding American assets since they technically violate the law.

As such, the CSE became the go-to choice for American companies looking to list in Canada. Once it became clear that the CSE embraces cannabis companies, including those that are American, more American cannabis companies announced their plans to go public.

Which Companies Are Better for Investors?

It remains to be seen whether investing in American or Canadian cannabis companies will be better for investors. There are experts on both sides of the spectrum, each with their opinions. In 2018, GMP Securities released a report indicating that it is smarter for the long-term to invest in American companies. This preference was backed by multiple points, including the broader markets in the United States, the strong economics, and the attractive valuation gap.

On the other hand, many feel that the lack of federal-level legality of cannabis in the United States makes investing in Canadian companies a wiser decision.

Of course, there is no way to predict the future accurately, so all of the best guesses of experts are just that, guesses or predictions.

In the meantime, those with interest in cannabis, whether for investment or use, should consider familiarizing themselves with some of the public cannabis companies.

Listed on CSE and OTCQX, 1933 Industries is a vertically integrated company with assets in the U.S. and Canadian cannabis markets. These include producing, extracting, and cultivating hemp-derived products.

This is a biotechnology company that is working to develop genetically modified cannabis plants. That research comes from a sublicense agreement it has made with a subsidiary of Aurora Cannabis, Anandia Laboratories.

Abacus Health Products is on the OTCQX and CSE. It develops over-the-counter medical items of a topical nature that feature hemp-derived CBD. These products are designed to appeal to those who want pain relief.

Acreage Holdings, listed on the OTCQX and CSE, is among the United States market’s largest operators for cannabis assets that span multiple states. The company also has a Canopy Growth acquisition deal that will go into effect when the federal government makes marijuana legal across the United States.

Altria Group is primarily known as one of the biggest tobacco companies. Its status as a cannabis company comes from its investment deal with Cronos Group, which is just one of many in its asset portfolio.

Another company that barely associates with cannabis but does is Anheuser Busch InBev, which is known for its alcoholic beverages. Its cannabis involvement comes from a partnership with Tilray to develop drinks infused with marijuana.

Aphria is a Canadian-based marijuana stock that sells and produces cannabis. This company’s production facilities cover over 300,000 square feet. Aphria hopes to sell its cannabis products in Canada as well as various international end-markets. The company’s products are varied, including cannabis oils and a selection of sativas and indicas.

The caveat to keep in mind about Aphria is that as a stock, it is very unpredictable. Experts even consider it unstable in comparison to the average cannabis stock, which is known for being volatile due to the market’s uncertainty. As of October, it had a market cap of $1.807 billion.

The stock of Aphria surged in April 2018 following an announcement of a deal to sell products via Shoppers Drug Mart, a large Canadian chain of pharmacies. In 2019’s second and third quarters, however, the stocks slumped.

Aurora Cannabis has a quickly expanding operation, especially given the fact that cannabis is now legal in Canada. The company is actively growing its infrastructure, which as of March, took up 92,000 square feet. The future greenhouse will include 1.1 million square feet.

The focus of Aurora Cannabis is on medical marijuana. This does limit the company’s interests somewhat, but it also means that there are higher profits. Those increased profit margins for medical marijuana, including via Aurora Cannabis, allow for demand-driven prices that are inelastic and specialty products. Additionally, as of January 2017, Aurora has a license to sell cannabis oil.

As of October, this company was valued at $5.071 billion. Aurora Cannabis first appeared on TSX, the Canadian venture stock exchange, in October 2016, before debuting on the New York Stock Exchange precisely two years later.&nbsp; There are also some noteworthy acquisitions in Aurora’s history. In May 2018, it paid $2.5 billion for MedReleaf Corp, and, in early 2019, it bought Whistler Medical Marijuana Corporations, an organic producer of cannabis.

As of October, CannTrust Holdings Inc. had a market cap of $195.117 million. The company has a global partnership of exclusive nature with Appotex Inc., which is one of the Canadian leaders in the pharmaceutical industry. Additionally, CannTrust has a cultivation facility in Canada’s Niagara region with 430,000 square feet. This facility is the country’s sixth-largest dedicated to marijuana.

CannTrust offers consumers dry products as well as drop-based ones, all of which are designed for pharmaceutical applications. It only recently debuted on the New York Stock Exchange, doing so in February 2019.

Canopy Growth is also an LP from Canada. As of the middle of 2018, it was the industry’s biggest company, thanks to its fully-diluted market cap reaching about $6.5 billion. It was among the first companies to become publicly-listed within the United States, when it joined the New York Stock Exchange in May 2018.

Canopy Growth Company sells and grows marijuana for both medicinal and recreational purposes. In the first quarter of 2018, it made headlines by quadrupling sales. The operations of this company are wide-spread, including herbs as well as hemp, gel, concentrates, and oils. As of October 2019, CGC had a market cap of $6.969 billion.

Constellation Brands is an American company traditionally known as a significant player in wine and beer. This brewer is best known for Ballast Point, Corona Extra, and Modelo Especial, among others. In August 2018, the company acquired a stake of 38 percent in Canopy Growth in exchange for $4 billion.

Given Constellation Brands’ already-established nature and its $31 billion valuation (as of March), it is a safer method of getting involved in investing in cannabis via a public company since your investment will not only be in cannabis.

Hydrofarm is a distributor of cannabis equipment for cannabis growers. The company has been around since the '70s and is one of the biggest manufacturers of hydroponics and horticulture equipment. Their current CEO, Bill Toler, came over in 2019 to lead the company to profitability, after doing so during his tenure at Hostess Brands. They plan to embrace the growing vertical farming movement which isn't specific to cannabis, but all plants.

Cresco Labs is on the CSE and the OTCQX. It is among the public space leaders of MSOs. This company is known for its quick expansion across the markets where cannabis is legal.

Cronos Group is a Canadian LP that was the very first cannabis company that was pure-play and traded on NASDAQ or any other major United States exchange, doing so in February 2018. As of July 2018, it had a market cap of about $1.3 billion. Cronos Group focuses on investing in various marijuana-related companies as well as pot growers. Investments from Cronos include PEACE NATURALS, which is a global wellness and health company, COVE, which is a cannabis producer based in British Columbia, and Lord Jones, which produces hemp-derived CBD. Additionally, it provides cannabis and cannabis products.

Last year, Altria Group (MO) paid $1.8 million to buy a 45-percent stake in Cronus Group. You may have heard of Altria Group as the company that makes Virginia Slims and Marlboro and owns Philip Morris USA. That partnership is something that many see to be a significant advantage due to the company’s experience. Additionally, Altria acquired 30 percent of Juul, the vaping leader, the same year. This means that Cronos Group has the potential opportunity to explore both markets or have various interactions with vaping as well as cannabis. As of October, Cronos Group’s market cap was $2.844 billion.

Listed on the OTC, Emerald Health Therapeutics has a market cap of $101.379 million. The company produces dry cannabis in addition to cannabis oils, and it has its base in British Columbia. According to New Cannabis Ventures, this company raised $10 million (CAD) in equity thanks to Dundee Capital.

Green Thumb Industries is among the earlier American cannabis companies to be listed on the Canadian Securities Exchange.

Listed on the OTCQX and TSXV, Harvest One Cannabis has assets and production facilities across Canada as well as Israel, Australia, and Europe. It also has three subsidiaries: Dream Products, Satipharm, and United Greeneries.

HEXO Corporation was the first licensed producer of medical marijuana to have its headquarters in Quebec. The company’s focus is on the use of recreational marijuana. In October 2019, the company launched a new line of cannabis that is value-conscious, called Original Stash. This affordable line costs only $4.49 per ounce, a price that already includes taxes.

Innovative Industrial Properties is not a typical cannabis company. Instead, it is a real estate investment trust that signs lease deals for spaces in the world of medical cannabis. Since this is a real estate investment trust, this allows it to avoid touching the marijuana plant and enabling it to be still listed on the New York Stock Exchange.

MedMen is an American marijuana company that you can find publicly listed on the CSE as well.

Molson Coors Brewing Company is one of the many beverage makers that entered the cannabis industry thanks to a partnership. It is working with HEXO to help develop drinks infused with cannabis, designed to sell in Canada now that marijuana is legal there.

Namaste Technologies Inc. is listed on the OTC and has a market cap of $97.082 million. Its focus is on medical marijuana and e-commerce. The company has operations in 20 countries, with 32 separate sites. As of 2017, Namaste enhanced its portfolio with CannMart Inc. This company has a distribution network throughout Toronto. This acquisition helped Namaste Technologies with the distribution.

Neptune Wellness Solutions works in the marijuana space’s extraction market, as well as providing products in the extraction market. It also makes use of Licaps technology to produce cannabis capsules.

OrganiGram Holdings has a market cap of $549.118 million as of October. This company first arrived on the NASDAQ in May 2019, so it has not yet been publicly-traded for very long so far. The company produces licensed medical marijuana products. The portfolio has dry cannabis products, and cannabis oil and related accessories, such as vaporizers.

You may be surprised to learn that Scotts Miracle-Gro Company, which is known for being among the largest product sellers for consumer lawn and garden products. The company entered the cannabis industry by providing services for growers without direct involvement in the industry or with the plants.

Supreme Cannabis Company Inc. (SPRWF; 7 Acres)

Supreme Cannabis Company is listed on the OTC and has a wholly-owned subsidiary known as 7Acres. It is this subsidiary that produces marijuana. Before December 2017, The Supreme Cannabis Company Inc. was called SupremePharma.

As of October 2019, The Supreme Cannabis Company’s Blissco wellness brand received its license to sell cannabis oil. Those in the industry anticipate that this will lead to an expansion in the products that the company offers.

Tilray is yet another Canadian LP, but this one is operated and owned by Privateer Holdings, which is based in Seattle. When this company made its NASDAQ debut, it had a market cap of over $1 billion.

The company was incorporated in 2018 and went public nearly immediately, being among the first cannabis companies to do so. The stock quickly skyrocketed, going from just $20 per share to $300 in just several months.

Tilray’s focus within the cannabis industry is on research and production as well as distribution for medical cannabis. Earlier this year, Tilray branched out with its acquisition of Manitoba Harvest. Tilray was valued at $7 billion at the time. Manitoba Harvest is a food company offering hemp-based products and a major distribution network across the United States. This move cost $316 million and should provide diversification, helping to stabilize Tilray as an investment option.

Village Farms International is a greenhouse grower in North America that is vertically integrated. Its entry into the world of cannabis began via a 50-50 joint venture related to managing Pure Sunfarms, a cannabis grower.

In addition to the other public cannabis companies mentioned on this list, there are many others, especially if you spread your search to international companies instead of just the United States and Canada.

An Overview of Public Cannabis Companies

With the advent of legalization of cannabis comes an influx of new companies (public and private). Learn all about them.

Those with a deep interest in cannabis, including growing it, will want to take some time to learn about the Emerald Triangle. This is the name given to a region in California that is the United States’ largest cannabis-producing region. Many of the big names in cannabis growing are located within this area, which has a rich cannabis history as well as a culture related to the plant.

Nearly Everyone Is Reliant on the Cannabis Industry

According to some sources, many of the locals in the Emerald Triangle feel that everyone who lives in the region depends on the cannabis industry, either directly or indirectly. In the indirect cases, this is simply a case of economic reliance as the marijuana industry is a significant part of the region’s economy.

To put that level of involvement in perspective, consider that the 2010 census found that the Emerald Triangle has a total population of 236,250. Most of these people live throughout the area’s numerous woody hills. Given that the Emerald Triangle covers 11,138 square miles, this works out to a population density of 21 people per square mile.

Overall, the Emerald Triangle is sparsely populated. Eureka is the only city and its urban area has around 50,000 people. The next largest city is Arcata, which has 17,231 residents, followed by Ukiah, which has 16,075. The next largest city is much smaller than either of these.

Some people in the Emerald Triangle have indicated that an incredibly large proportion of the population grows cannabis, either for personal use or for sale. So far, law enforcement has not seriously enforced the required permits and licensing for growing cannabis. In 2015, one resident of the area estimated that around 90 percent grow with just one percent getting arrested.

That, however, has changed over the years. As the legalization of cannabis spread, the law enforcement officials in the area have gotten tougher on illegal growers. Earlier in 2019, there were numerous reports of law enforcement intimidating illegal growers and sometimes even legal growers. There are low-flying planes frequently passing over the area, affecting legal and illegal growers. Law enforcement does specific, however, that legal growers have nothing to worry about.

On a map, you will find the Emerald Triangle at 40.0 degrees north and 123.5 degrees west. This region is in the northern portion of California.

This region includes three counties: Trinity, Humboldt, and Mendocino.

This has been an area with cannabis cultivation since the 1960s, well before marijuana was legalized for medical purposes in California.

The Emerald Triangle’s&nbsp;history began when hippies moved to the area to get away from the pro-war sentiment and other people. They also moved this way to avoid the high cost of living in other areas of California. Once there, the hippies realized that the conditions were great for growing cannabis and the lack of roads meant their plants were unlikely to be stumbled upon.

The location of the Emerald Triangle also meant that it played a role in the Summer of Love in San Francisco in 1967. This summer included up to 100,000 young hippies who enjoyed free-love, anti-war stances, hippie music, and marijuana among other drugs.

Given that most people are (and have been) well aware that the Emerald Triangle has been a hub for cannabis growth, it is no surprise that some legal issues have arisen over the years, especially before medical and recreational marijuana were legalized in California.

In 1984, the residents of Humboldt County filed a lawsuit on the federal level. They claimed that the U-2 reconnaissance aircraft associated with the Campaign Against Marijuana Planting had illegally surveilled them by flying overhead at a high altitude.

The surveillance took place on just one day and was one of 524 cities in the state surveilled in 1983 as part of the campaign. At the time, the law enforcement officials involved argued that they had not broken any laws. After the announcement of the initial lawsuit for $10 million in punitive damages, and its appearance in the news, no more information was publicly revealed.

When California passed Proposition 215, the marijuana industry in the Emerald Triangle exploded. The legality of medical marijuana made it much easier for growers to cultivate cannabis as it was finally legal to do so.

Proposition 215 is also known as the Compassionate Use Act of 1966. This was a key event in the spread of legal marijuana across the country.

It Is Now a Primary Activity Spanning Generations

Over the years, the cultivation of cannabis in the Emerald Triangle has spread, especially since the legalization of medicinal marijuana and then recreational use. Now, you can find many multi-generation cannabis farms, some of which even include three generations.

The Conditions Are Ideal for Cannabis Cultivation

There are few plants that would do well in the Emerald Triangle given its hilly terrain. Marijuana, however, thrives in the area. As an example, a 2015 article mentioned a grower who showed CNBC his garden and let the interviewers know that the plants could reach up to 14, 15, or even 20 feet. Each plant of that size would produce around two pounds of cannabis, which at the time was worth around $5,000.

The low population density and vast stretches of empty, unpopulated land offer plenty of growing space. This combines with the excellent environmental conditions for growing cannabis, including optimal temperatures, fertile and high-quality soil, lack of strong winds, and excellent solar exposure.

The ability to grow outside in the Emerald Triangle also holds a strong appeal. There is less set up involved than growing indoors, a lower startup cost, and significantly lower electricity bills.

The Napa Valley or Silicon Valley of Cannabis

Because of the amazing growing conditions for marijuana in the Emerald Triangle, it is common to refer to it as the Silicon Valley or Napa Valley of cannabis. This comes from the combination of the high percentage of the population that grows cannabis as well as the high quality of the plants, flowers, and&nbsp;seeds produced there.

In addition to the perfect growing conditions for marijuana in the Emerald Triangle, the region also has sociopolitical factors that help. Specifically, the cannabis industry expanded there as it filled in gaps left by fishing, lumber, and other failing industries.

Legalization Allowed Growers to Find the Best Sites

Before California legalized cannabis, most of the sites in the Emerald Triangle where people would grow cannabis were chosen for a combination of conditions and the ability to remain hidden. Since&nbsp;legalization, however, growers have been able to be more obvious. Now, they can choose sites based solely on factors like microclimate and soil quality without fear of legal repercussions.

Some of these areas that growers agree are best for cultivation include Bell Springs/Spyrock (in Mendocino), Hayfork Valley (in Trinity), Mattole Valley (in Humboldt), and Mid Klamath (in Humboldt and Trinity).

In the Emerald Triangle, the general acceptance of cannabis means that many growers cultivate it outdoors in addition to indoors. This has led to some local environmental concerns due to the agricultural impact.

Some of it comes from the lack of regulation for cannabis production outdoors typically found in the area. Because there is minimal to no regulation for those who grow cannabis outside in the Emerald Triangle, it is unfortunately common for some unscrupulous growers to illegally dam streams or divert and take the water from springs. This latter action is particularly common in the summer when water access is more complicated.

There is also the environmental concern of growers who use pesticides and other harsh chemicals. This leads to runoff that contains the pesticide. That pesticide can end up in critical salmon fisheries, degrading them.

Yet another environmental concern is the clearcutting that some growers need to create their cannabis plantations, combined with the roads that must be built to access them. This reduces the number of trees, which is bad for the planet as a whole. It also degrades the habitat of various animals, including endangering salmon.

There are even concerns about some cannabis growers cultivating their plants on public land, which is illegal.

Putting the Importance of the Emerald Triangle Into Perspective

To help put the importance of this region into perspective, consider estimates that the Emerald Triangle produces more cannabis than any other part of the country. Some even speculate that it is likely among the world’s most important cannabis production regions.

In addition to the people who live in the Emerald Triangle all year round growing cannabis, there are also hundreds of people who visit the region in the fall. They come in search of jobs harvesting cannabis. Most of these people who come for seasonal work are itinerant trimmers, referred to as “trimmigrants.”

The counties immediately outside the Emerald Triangle also attract these seasonal workers, including Napa and Sonoma.

There Is Also a Regular Influx of Those Interested in Cannabis

The region also regularly attracts new people with an interest or experience in cannabis. In addition to the trimmers, there are breeders, growers, backpackers, resin extraction specialists, and more.

Growers and Strains From the Emerald Triangle

With such a rich history of cannabis growth and so many people dedicated to the industry, it should come as no surprise that the region is home to many of the most respected growers and many unique cultivars or strains.

Some of the growers and other cannabis&nbsp;companies you have likely heard of include:

Some of the cultivars from the region include:

Can It Remain the Main Producer as Legalization Spreads?

Some people wonder whether the Emerald Triangle will be able to maintain its role as the primary producer of cannabis within the United States, especially as the legalization spreads. As more states legalize marijuana, medically and/or recreationally, there are more opportunities across the country for growing the plant.

Cannabis cultivation will likely continue to increase across the country and world as the legalization spreads, but the Emerald Triangle has some strong points in favor of it remaining a leader in the industry.

To start, the region has the perfect growing conditions to cultivate cannabis&nbsp;outside. This lowers the entry cost as well as the cost associated with electricity. Those who grow in an area that requires indoor growing will spend significantly more on electricity, cutting into potential profits.

The region also has a great deal of experience and is now filled with experts in cultivating cannabis as well as other aspects of the plant. With this knowledge and experience, the Emerald Triangle should be able to continue producing consistent, high-quality cannabis. Regions that are still new to growing the plant will have to experiment to see what works best, but the Emerald Triangle growers already know.

There is also the fact that the area is well-known for cannabis cultivation and therefore attracts more experts, trimmers, and other workers. People know that they can find a cannabis-related job in the area, but that is not always a given in other regions that are just starting to cultivate cannabis.

There will be competition in other regions, but the Emerald Triangle likely has the companies and experience needed to remain competitive.

The Emerald Triangle is a region in northern California that spans three counties and is the largest grower of cannabis in the country. People in the region began growing cannabis due to the excellent growing conditions combined with the unlikelihood of busts due to the remote location. With the legalization of cannabis in California, the region has experienced a boom and it will likely continue to be a key area for marijuana production.

The Emerald Triangle – What to Know

The infamous region located in Northern California has quite a reputation in the cannabis industry.

Cannabis industry information on stocks, businesses, dispensaries, and more.