The Democratic win that joined the wave of state legalization is encouraging for the cannabis market. Based on their most recent quarterly filing, Canopy Growth Corp (NASDAQ: CGC), Cronos Group Inc (NASDAQ: CRON), GW Pharmaceuticals PLC (NASDAQ: GWPH), Aphria Inc (NASDAQ: APHA) that announced it will merge with Tilray Inc (NASDAQ: TLRY) in mid-December and Trulieve Cannabis Corp (OTC: TCNNF), entered 2021 with the most cash on their balance sheets.
But other stocks such as Curaleaf Holdings Inc (OTC: CURLF), Cresco Labs Inc (OTC: CRLBF), Planet 13 Holdings Inc (OTC: PLNHF), Innovative Industrial Properties Inc (NYSE: IIPR) and Green Thumb Industries Inc (OTC: GTBIF) show a lot of potential as well, along with several powerful small caps.
Being Cash-Rich Is Not Is As It Seems
Aphria is yet to produce a net profit but it is in a great position to expand into the U.S. market as mass legalization continues. Another catalyst for growth is its announced $4 billion merger with Tilray.
Canopy Growth, the largest pot stock in the world, is once again the cannabis cash king with $1.37 billion in cash. The bulk of its cash came from multiple rounds of equity investments from spirits giant Constellation Brands, Inc. (NYSE: STZ). While $1.37 billion in cash might sound fantastic, this is actually down by more than $2 billion compared to November 2018, which is when the large equity investment from Constellation Brands closed. Unfortunately, Canopy Growth is losing a lot of money, so its cash-rich position isn't as secure.
Canadian licensed producer Cronos Group the second-most cash-rich pot stock. But like Canopy Growth, its cash of $1.3 billion is actually down from the previous year.
GW Pharmaceuticals ended the third quarter with a hearty $480 million but …