Weed will now be hauled in Brink’s trucks

A lot of room for growth.
A lot of room for growth.
Image: REUTERS/Carlos Osorio
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It’s a problem previously more common to drug cartels: How do you move high-risk substances between one place and the next? In the murky world of international drug trafficking, past solutions have involved catapults to hurl packages over borders, or fake buttocks with compartments to hide drugs. Others take their chances with FedEx.

But in the wake of marijuana legalization in Canada, above-board suppliers must now tussle out their own solutions. Canopy Growth Corp., one of the world’s largest weed firms, is opting for armored trucks. Yesterday (Nov. 8), Canopy announced a multi-year agreement with Brink’s Co, who will provide the cannabis company with “secure logistics and cash management services,” including ferrying weed around the world.

For Brink’s shareholders, this is great news. It will likely send an already robust stock even higher—Brink’s shares gained 1.8% in early trading today (Nov. 9). What’s more, as Bloomberg reports, it could allow the company to be included in cannabis-focused exchange-traded funds like the ETFMG Alternative Harvest ETF.

And for investors who want to warm their hands in a marijuana-generated glow without getting burned, it could be the perfect option. “Most so-called ‘cannabis stocks’ aren’t profitable and sell at stratospheric multiples of revenue,” James Clement, analyst at Buckingham Research Group, told Bloomberg. BCO, on the other hand, is a more established, conservative option. “With BCO, an investor can get some cannabis exposure without the valuation bubble risk that some perceive in the space, in our opinion.”