Another day, another marijuana IPO success.
This is almost getting old.
This morning Nextleaf Solutions (CAN:OILS) hit the public markets.
Nextleaf shares closed at C$0.40 today. This is up a full 14% from the C$0.35 placement price of the C$5 million financing deal the company put together as part of its going public transaction.
Nextleaf’s market cap is now C$37 million after today’s bounce.
Here’s why its important.
Nextleaf is not in the hot marijuana sector right now.
As you know, the Seed Investor expects retail marijuana stocks to be the next growth wave in the marijuana industry.
The cultivators have had their run, Canada’s national and many states’ legalizations have gone through, and now the industry is maturing, and retailers and branded end-consumer products will be the prime players moving forward.
Nextleaf is more of a “picks and shovels” play in the background of the industry.
The company makes extraction equipment which turns raw marijuana flower into concentrated oils which can be used in vapes, edibles, beverages, and other products which will eventually make up the majority of the marijuana industry.
In other words, Nextleaf isn’t the sexy play in marijuana right now.
However, it’s strong IPO is an indicator of the massive trading opportunity in newly-listed marijuana stocks.