If you need another sign that pot stocks are growing in popularity and importance, here’s one:
Three new marijuana stocks are poised to be listed next month on the S&P/TSX Composite, Canada’s broadest index of the largest stocks.
The decision is expected to be made in early March.
The move is part of a regular update of the index, which occurs every quarter. Companies deemed to be too small are dropped, and companies that have gained value are added. The changes are calculated based on formula that does not simply look at the company’s market capitalization, but weighs the value of a stock’s liquidity, namely shares that are not held by principals, or insiders, and make up what is commonly referred to as the “float.” These shares are available to be bought and sold by the public and frequently change hands. To be included on the S&P/TSX Composite, the float-adjusted market cap has to meet a specific threshold: 0.05 per cent of the total value of the index.
And according to a report in the Globe And Mail, a recent analysis by AltaCorp Capital says three marijuana companies could be added: Hexo Corp (TO:HEXO)., CannTrust Holdings Inc (TO:TRST) and Green Organic Dutchman Holdings Ltd (TO:TGOD)
HEXO is a licensed cannabis company headquartered in Quebec with 1.3 million square feet of growing facilities in Ontario and Quebec and expanding into Greece.
Earlier this week, CannTrust made a bold move by listing its stock on the New York Stock Exchange. The Ontario-based company is a licences producer of both medical and recreational cannabis.
Green Organic Dutchman Holdings Ltd. is an Ontario-based organic producer with growing facilities in Quebec and Ontario.