Japanese Government Likes Investing in Cannabis Stocks
Despite having one of the strictest cannabis laws on the planet, Japan invested some $80 million in cannabis stocks on the Ontario Stock Exchange in Canada last year, Bloomberg reveals.
Namely, last summer, the Japanese Government Pension Investment Fund (GPIF), the largest of its kind globally, publicly disclosed their investments in three major publicly-traded cannabis companies.
A big slice of the “investment pie,” approximately $50 million, was used to make GPIF a leading shareholder in the publicly-traded Canopy Growth — a company with one of the best-priced marijuana stocks on the market today.
This brand surpassed all the other promising cannabis stocks in 2020 and thrived during the pandemic outbreak while simultaneously constructing a cannabis infrastructure in the US.
Next on the list of cannabis investments was Cronos Group, into which the Japanese invested $17 million; this Toronto company is not strictly cannabis-specific but owns several different brands.
Yet the main issue is that many see this move by the Japanese government as the utmost hypocrisy, given that merely cultivating cannabis in this country can spell some 7 years in jail.
Nao Honda, the Pension Fund’s spokeswoman, affirms that GPIF’s only aim is to defend the long-term interests of their members. Besides, officials affirm that they were tracking equity indexes, and not directly buying stocks.
In any case, the invested $80 million are just a speck of the GPIF’s overall assets, which amount to $1.6 trillion.
One thing is for certain — all that investments will become extremely lucrative if the US legalization trend in 2021 continues.