With the close of 2018 and sinking of the reality of marijuana use in Canada, chances are that the next round of initial public offerings in the marijuana sector will come from the US-based companies interested in raising cash. Recreational cannabis sales in Canada have been affected by supply shortages. This is why the IPO activity is likely to slow down to a certain level because companies that managed to go public have to fulfill the promises made to investors. Here are some of the companies which could go public this year and prove to be the next hot pot stocks.
The marijuana focused vaporizer brand could raise $20 million from investors last year. Pax Labs is involved in manufacturing vaporizers for use with marijuana flower and pen and pod system for CBD oil. As it does not work with cannabis, there is a possibility that it gets listed on the major exchange like New York Stock Exchange. The company reported to be planning a huge round of funding this year to support rapid growth.
Operating as Harborside after running a chain of pot shops in the San Francisco Bay Area, the company has planned to be listed on the CSE in 2019. It aims to raise about $50 million through a private placement in 2019. Harborside operated as a non-profit medical marijuana dispensary earlier but will be moved to a for-profit firm. It will complete a reverse takeover of an existing listed pot stocks and will use the raised funds to expand its cultivation facilities and retail operations among other things.
California has a larger recreational cannabis market and a home to a large number of pot businesses of varying stages and sizes of development. However, none of these are permitted to be listed on large stock exchanges because they are illegal as per the federal law. KushCo is one company which will get a break into the U.S exchange this year. KushCo Holdings is a California-based business involved in producing packaging material for different types of cannabis products apart from other activities that don’t touch the plant. In early 2019, the company would be listed on the NYSE or Nasdaq and has been focused on IPO for a long time. According to the CEO, KushCo will be one of the first pot stocks to allow institutional investors to bet on the cannabis industry. It will emerge as one of the safest options for investing in brands listed elsewhere.
Marijuana Data Companies
Being illegal according to federal law, it is hard to get the data on the marijuana industry. However, with the legalization of medical and recreational pot in many states, a part of the sector has emerged to serve pot producers with market intelligence. Currently, there are three leaders in this area – Frontier Financial Group Inc., Headset Inc. and BDS Analytics Inc. any of which could be on IPO in 2019. Just like KushCo and Pax Labs, these companies don’t deal with cannabis directly and are likely to be listed on major exchanges such as NYSE and Nasdaq.
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