Unlike its southern neighbor, Canada legalized medical marijuana nationwide back in 2001. That means that the industry has evolved a lot more and is not plagued with restrictions across state lines, as is the case in the United States, where there are about 28 states where pot is allowed for medical use. Further, a task force commissioned by the Canadian government came out with a report in November 2016 with recommendations for changing the current regulations and paving the way for legalization of pot for recreational purposes as well. In the United States, currently only 8 states have legalized marijuana for recreational use.

(Read Also: Legal Weed Market To Triple In 5 Years)

While uncertainty prevails in the United States, investors could get a piece of the pot action by investing in Canadian stocks traded in the country in the over-the-counter (OTC) markets. Most of these stocks can be labeled as penny stocks, so any investment may carry a significantly higher risk component. Here's a look at some of those companies.

1. Canopy Growth Corp.

Market Cap: $1.2 billion

With its market cap exceeding a billion dollars, Canopy (OTC: TWMJF) is touted as Canada’s first unicorn in the pot market. While the company sells its produce under various brand names, the brand ‘Tweed’ has had the most recognition, thanks to its affiliation with rapper Snoop Dogg. The 1-year return for the stock in the OTC market has been 316% as of February 2, 2017.

2. Aurora Cannabis

Market Cap: $514 million

Aurora Cannabis (OTC: ACBFF) debuted on the Canadian venture stock exchange (TSX) in October 2016. In addition to producing dry cannabis, Aurora received a license to sell cannabis oil in January 2017. It has been around longer in the OTC market, returning 345% over a 1-year period as of February 2, 2017.

3. Aphria Inc.

Market Cap: $474 million

The company calls itself one of the lowest cost producers of marijuana. Aphria (OTC: APHQF) produces dry cannabis as well as cannabis oil of varying qualities and strength. In its last reported financial statement, it sold nearly 639 kgs equivalent of product in three months up to November 2016. The stock put up an extremely robust performance, giving 386% return for the 1-year period as of February 2, 2017.

4. SupremePharma

Market Cap: $164 million

The company produces marijuana under the banner of its wholly-owned subsidiary 7Acres. In December, SupremePharma (OTC:SPRWF) announced a private placement financing deal worth CAD 55 million or close to $42 million USD to expand its Hybrid Greenhouse facility and other working capital requirements. The stock’s 1-year return is 334%

5. OrganiGram Holdings

Market Cap: $215 million

This company's portfolio includes dry cannabis and cannabis oil, along with accessories like vaporizers that can be purchased on its website. Although it promises organic produce, OrganiPharma (OTC: OGRMF) issued a product recall in December 2016 because the products contained pesticides not approved for marijuana growing. The stock has still managed to return almost 270% for a 1 year period as of February 2, 2017.

6. Emblem Corp.

Market Cap: $182 million

Emblem (OTC: EMMBF) is another newly-listed company on the Canadian exchange. A few days after listing, the company announced that it was sitting on a cash pile of CAD 27 million that it was looking to deploy in expansion. Soon after, it got a go-ahead from Health Canada to begin production of cannabis oil.

7. PharmaCan Capital/The Cronos Group

Market Cap: $169 million

This company is in the business of investing in pot growers and companies in the marijuana business. PharmaCan’s (OTC: PRMCF) portfolio currently consists of 6 companies. It owns 2 of these companies completely—the rest it holds a minority stake in. The stock has had a rocky year, and has still returned 592% for the one year period as of February 2, 2017.

8. Emerald Health Therapeutics

Market Cap: $70 million

Emerald Health Therapeutics (OTC: TBQBF) is also a producer of dry cannabis and cannabis oils for medical use based out of British Columbia. New Cannabis Ventures reports that the company raised CAD 10 million in equity from Dundee Capital. The stock has been on an upward trend with a whopping 629% return for a 1 year period as of February 2, 2017.

9. THC BioMed International

Market Cap: $51 million

This is primarily a bio-tech company engaging in research & development on marijuana also dabbling in providing training and solutions to licensed growers. A big boost for THC BioMed (OTC:THCBF) came in December 2016, when it got the green light from the authorities to start shipping marijuana plants for licensed growers across the country. But the upside was short-lived as the company announced in January 2017 that it will be restating its financials, causing the stock to take a hit. Even so, the 1-year return as of February 2, 2017 is an impressive 747%

10. iAnthus Capital

Market Cap: $38 million

This company is scooped cannabis based businesses south of the border in 4 states across the United States. Last December iAnthus (OTC:ITHUF) announced its first complete cannabis related acquisition with the $4.375 million purchase of Colorado based Organix, a medical and recreational pot dispensary. iAnthus’ other investments also include financing and management deals with 3 other companies, totaling potentially 8 licenses for marijuana businesses, 9 dispensaries and 4 cultivation facilities. The 1-year return on the stock is close to 16%.

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