Cannabis Stocks to Benefit from Marijuana Legalization

Marijuana legalization benefiting stocks

Marijuana legalization benefiting stocks: On Tuesday, the Canadian government passed the Cannabis Act. Justin Trudeau has given the target date of October 17th for the law to go into action. 

As a result, the Canadian cannabis market is receiving a lot of love and attention. And while not every cannabis stock is set to benefit from the legalization, there are two, in particular, that are poised to profit. 

The two stocks are as follows: MedMen, Inc., and Canopy Growth Corporation.

Marijuana Legalization Benefiting Stocks

1. MedMen, Inc. (CSE:MMEN)

MedMen is thought, by some, to be a controversial company. Whether that is true or not is not up to us. All we know are the facts. 

MedMen has a strong chance of benefiting from the Canadian cannabis legalization as it has a joint venture with Cronos Group Inc. (TSX:CRON). With this joint venture, both organizations will be bringing American marijuana brands into the legal Canadian market. 

With its experience in the United States, and its involvement with Cronos Group, I wouldn't be surprised if MedMen saw a few price spikes now that recreational cannabis use is legal. 

MedMen Stock Price

Remember that cannabis isn't legal yet in Canada. This means that if companies are going to profit from the legalization, it probably won't start happening until October, the month that the law goes into effect. 

That's likely why MedMen ended the Friday trading session down 4.11%, trading at $5.13, despite its potential to succeed. 

2. Canopy Growth Corporation (TSX:WEED)

In a way, Canopy Growth is almost guaranteed to benefit from the Canadian cannabis legalization. 

Why? Well, for starters, Canopy Growth Corporation is the number one Licensed Producer in the country. As a result, Canopy Growth has already been working towards legalization, acquiring supply agreements with roughly half of the country's provinces. 

In the next year, there will be Canopy Growth dispensaries in the following provinces: Newfoundland and Labrador, Manitoba, and Saskatchewan. 

Canopy Growth Stock Price

Like MedMen, Canopy Growth failed to shine on the cannabis market today, trading down close to 10%. Again, however, we mentioned why this could be happening: the bill still needs royal assent. 

According to Google Finance, at 4:42 p.m. EDT, Canopy Growth was down 9.07%, trading at $43.43. 

The Takeaway

What do you think about the Canadian cannabis legalization? Do you think MedMen and Canopy Growth should be included on this list of stocks to benefit from marijuana legalization?

>> Legalized Marijuana Saved the Town of Trinidad, Colorado

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