The cannabis industry has been attracting investors due to its extensive growth potential and the need for cannabis in medical and other products. Analysts are expecting the cannabis industry market capitalization to double in the next couple of years to $55 billion from the current level of $29 billion. The evolving industry has also been significantly responsive to market news' and statements from important leaders.
After a sharp growth in North American Marijuana Index in the final quarter of last year and extending the momentum into the beginning of this year, the index plunged sharply in February – traders concerns related to the NAFTA agreement and trade tariffs impacted the price. Also, the steady decline in marijuana spot price over the last eighteen months added to bearish sentiments.
"Until there is some sort of concrete (federal) enforcement, all the huffing and puffing really doesn't affect the market dynamics on the ground," stated the 2017 Annual Review and Outlook, published by Cannabis Benchmarks.
The index has rebounded this month; the North American Marijuana Index grew to 260 points this month from February low of 228 points.
Market Activities are Intensifying
Cannabis companies are investing actively in growth opportunities, amid the strategy to expand the market share in the rapidly growing industry. Last week, Ontario announced its cannabis store logo design, while several companies, including Aurora (OTCQX: ACBFF) and Canopy Growth Corporation (TWMJF: OTCPK) illustrated their brands as a significant aspect of their product strategy.
Aurora had recently announced its intention to acquire CanniMed – which will allow it to become the largest company in the cannabis industry with the significant market presence in the United States and Canadian markets.
>>CannaRoyalty Continues To Expand Its Market Penetration
The rumors for the potential acquisition of Alcaliber by Canopy growth have further strengthened market sentiments for the potential growth in business activities. Benchmark Botanics (OTCPK: BHHKF) was among the most prominent gainer last week with the price appreciation of 50%, while Radient Technology (NYSE:RTI) was the laggard. Aurora, Canopy, and Aphria share price hiked at a mid-single digit rate last week.
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