Cannabis legalization in Canada: Marijuana stocks surging

Marijuana stocks are surging after Canada becomes the first G7 country to legalize it.

REUTERS/Andres Stapff

Marijuana stocks surged Wednesday morning after Canada legalized the drug.

The Canadian Marijuana Index, an aggregate measurement of all publicly-listed marijuana stocks in Canada, was up 3.34% as of 10:45 a.m. on Wednesday. The overall North American index, which includes US stocks, was up 2.28%.

Golden Leaf Holdings, a Canadian Securities Exchange-listed cannabis company, was the biggest gainer with the stock surging 6.81%.

Overall, legalized marijuana is expected to be a boon for Canada’s economy. CIBC, one of the country’s largest banks, predicts Canada’s legal marijuana market will be a $6.5 billion industry by 2020.

A number of Canadian marijuana firms, including Aurora Cannabis and Canopy Growth Corp are seeing a wave of investor excitement around marijuana legalization. Marijuana companies are capitalizing on all that liquidity to go on acquisition sprees.