While Canada prepares to legalize marijuana on Oct. 17, the cannabis industry has soared from essentially nothing five years ago to a global wave today. Canadian companies like Canopy, Tilray, Aurora Cannabis Inc. and Aphria Inc., are trailblazing the path. Canada’s cannabis companies are experiencing an investment boom so big it's making even some of the industry's biggest participants paranoid.
The growth potential in marijuana has yet to translate into big sales or profits. Tilray reported second-quarter revenue of US$9.7 million. Aurora, valued at about US$6.4 billion, had sales of US$12.2 million in its most recent quarter. In just the first two days of this week, Aurora stock has risen 12 per cent and Tilray is up 23 per cent. The market is expected to grow after legalization, but that still might not be enough to justify valuations.
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