Two Canadian medical marijuana producers began public trading on Monday, joining their competitor Tweed Inc. on the Toronto Stock Exchange.
Bedrocan and OrganiGram are among 13 companies with a license to grow and sell medical marijuana in Canada. Both have raised millions from private investors, but are now hoping to raise more through public offerings.
Bedrocan (BED) shares hit a high of $1.40 this morning after listing on the TSX Venture Exchange. OrganiGram (OGI) reached a high of $2.40 during morning trading.
Under a new program that took effect April 1, medical marijuana in Canada has been transformed into a commercial industry. And while still young, many investors have high hopes for the new market, which is projected to grow to $1.3 billion in the next 10 years.
On April 4, another one of Health Canada’s authorized producers, Tweed Marijuana Inc. (TWD), became the first medical marijuana company to go public. Tweed’s shares hit a high of $4.50 during its first day of trading and was the third most traded Canadian stock that day. The stock has since settled to around $2.60, valuing the company today at over $100 million.
While Health Canada has only licensed 13 companies so far, officials say over 900 applications have been submitted since last summer.
Bedrocan currently supplies medical marijuana to 1,100 patients. The company reported $100,000 in sales during the first three months of 2014.
Unlike its competitors, Bedrocan imports product from its sister company Bedrocan BV in the Netherlands. The cannabis is then packaged and distributed from a site in Toronto, Ontario. Bedrocan plans to build out a 52,000 square foot facility and begin local cultivation by the end of 2014.
OrganiGram grows cannabis at its 20,000 square foot facility in Moncton, New Brunswick. The company hasn’t started to supply patients yet, but hopes to differentiate itself with a line of organic, condition-specific product. OrganiGram says its first few batches of cannabis have already sold out.
Other medical marijuana producers, such as Mettrum Ltd., are also in the process of listing on the TSX.