I’d like 1000 shares of marijuana, please

Ever consider investing in medical marijuana on the stock market? Thanks to Canada’s Cannasat Therapeutics Inc., you can. Here’s the scoop:

Cannasat bills itself as one of a handful of companies in the world that is researching and developing medicines derived from cannabis plants.

Executives acknowledged at a media conference that the fledgling firm faces an uphill battle on many fronts — from the enormous cost and risk involved in developing new drugs to fighting a social stigma that conjures up images of police officers on pot busts pulling up rows of tall green plants and stoned teenagers getting “the munchies.”

“Does it give you a buzz?” a reporter asked at one point.

“This is not about fun. It’s about function,” said a stern Znaimer, who serves as chairman of Cannasat’s board of directors. “This is not marijuana that people come to because they’re looking for a good time.”

Shares of Cannasat, whose symbol is “CTH”, closed at 40 cents on the TSX Toronto Venture Exchange yesterday, up 15 cents from the day before. The stock has been trading on the junior exchange for about a week.

If one can buy stocks for pharmaceutical companies developing weed products, the next logical step is the ability to buy pot futures on the commodities market. However, one wonders how long it will be until the nitwits in D.C. make ownership of marijuana-related common stocks illegal for U.S. citizens. After all, marijuana stocks will have to be considered a gateway investment.

Stephen Gordon

I like tasteful cigars, private property, American whiskey, fast cars, hot women, pre-bailout Jeeps, fine dining, worthwhile literature, low taxes, original music, personal privacy and self-defense rights -- but not necessarily in this order.

6 Comments
  1. Very interesting although I thought the problem with marijuana was the non-existent chance to turn a profit in the capitalist market? There is a huge difference between medicinal cannabis and pharmaceutical products produced from cannabis. Lets face it, it doesn’t take a rocket scientist to grow the stuff nor is it hard to acquire seeds. Why would I funnel my hard earned money to a company whose function seems to be to skirt the law in order to sell at me? That may be a harsh characterization of the situation but “researching and developing medicines derived from cannabis plants” is almost a joke given the plant’s documented medicinal use since the beginning of recorded history.

    Lets stop putting people in jail for using cannabis first and foremost before we allow people to legally turn a profit with it.

  2. LOL… pot futures. There would have to be different contracts for different grades. I wonder what the contract size would be… maybe 1000 kilos?

    Realistically, I don’t think that there would be enough liquidity in the market… how much pot could medical cases possibly smoke? Who exactly would be hedging their future production? Where would delivery take place? There are no tobacco futures or drug futures. Now, if industrial hemp were legalized and became popular, it wouldn’t be a surprise to see those contracts start to appear and become liquid as the market matured.

  3. On another note, GW Pharmaceuticals has stock (symbol: GWP.L) on the LSE. Maybe if they had an ADR for cannasat and GW, there could be a Marijuana ETF?

  4. I can’t help but think that this is a good thing. Sure pharmacorps will rape cannabis to produce dirivative meds that are of lesser medicinal quality than the original plant itself. But, the sheer fact that they are using cannabis as medicine reinforces the fact that cannabis is not an evil, heinous menace to society. It will help legitimize the plant and can only serve to support the growing tidal wave of legalization that is (slowly) building around the world.

    The more money companies invested in pot make the better the chances for legalization because, as we all know, corporations rule the governments that rule the world. If big pharma gets in on the game they could definitely lobby down marijuana prohibition. Well, medical marijuana that is, they still wouldn’t want the common joe being able to grow it freely, that’d cut into profits. Grrr.