Industry News

Cannabis Extraction Stocks: An Emerging Market with Players Big and Small

Written by Colby McCoy

Long gone are the days when cannabis extraction was a cottage industry dotted with a handful of key players. As a result of continued pro-cannabis legislation in the United States, Europe, Latin America and Asia, cannabis extraction has grown into a global behemoth.

According to Grand View Research, the cannabis extraction market was valued at $7.3 billion in 2019, compared to $3.1 billion in 2016. Currently, oils make up the brunt of the value in the extraction marketplace.

Alongside booming growth, multiple cannabis extractors have entered the stock market, taking cannabis to a new level of societal acceptance.

One significant player to emerge in the cannabis stock market is MediPharm Labs (TSX:LABS), a Canadian-based extractor founded in 2015 that produces pharma-grade extracts. While the COVID-19 pandemic has largely depressed share prices, the company reached a high of roughly $5.40 per share in August 2019. According to the Green Fund, in Q2 2019 alone, the firm grossed $14.8 million in revenue.

Another firm that initially made a splash in cannabis market is Acacia Diversified Holdings Inc. (ACCA), based out of Clearwater, Florida. The company has maintained consistent share prices throughout 2020 and into 2021, currently holding a share price of less than 5 cents according to MarketWatch. Acacia is one of the oldest players in the game, having been founded in 1984. Five years ago, the price per share approached $2.00.

Jushi Holdings (JUSH.CX) is a newer holding company with processing facilities and a brand of concentrates (as well as a retail and cultivation presence). It opened at $2.34/share in 2019 and has hovered between $6-8 per share the last few months. Investopedia notes that this makes Jushi one of the fastest-growing stocks in the cannabis market. Curaleaf Holdings (CURA.CX) is also a fast-growing option with a price approaching $20 per share.

Another player to show impressive (albeit volatile) returns is Neptune Wellness Solutions (TSE:NEPT), which operates in both Canada and the U.S. In 2019, the company entered into a lucrative two-year agreement with a major farming services provider in the U.S., piquing the interest of investors. Although the stock reached $8.00/per share in the summer of 2019, it currently hovers around $2.00.

Today, the cannabis market offers investors both small and large players capable of yielding returns. Unfortunately, the coronavirus pandemic has affected share prices, making the future more uncertain. Always be sure to consult a professional adviser to best meet your individual investing needs.

Photo courtesy of Maxim Hopman from Unsplash

About the author

Colby McCoy

Colby McCoy is a recent graduate of the University of Georgia who has written for non-profits, marketing firms, and personal blogs. When not writing he can be found trekking the mountain ranges around Seattle, WA, with his two pups Harry and Riley.