RichTV Live breaks down the hot pot stocks you can invest in on US exchanges.
The pot stock market has seen some major activity since the US Farm Bill was passed and some cannabis companies are leading the movement. More and more jurisdictions are looking to legalize cannabis and the market for marijuana products is increasing rapidly, which means there is an abundance of pot stocks out there to consider. However, it is important that investors be cautious when choosing which companies to add to their portfolio.
By focusing on the more popular cannabis stocks that have a higher trader volume, investors can avoid some of the challenges that thinly traded stocks can create. Here are a few of the publicly traded cannabis stocks on U.S. exchanges that savvy investors should keep an eye on.
Aurora Cannabis Inc.
Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB), which is one of the largest and fastest growing cannabis companies in the world, has a capacity in excess of 500,000 kg per year and operations in 22 countries across five continents.
The company has continued to impress with its strategic investments and ever-expanding retail market. When ACB bought CanniMed (TSE:CMED) for $1.1B CAD ($852M USD) last year, the acquisition was dubbed the “world’s biggest cannabis deal” and positioned them as the world’s biggest marijuana producer. The company commenced trading on the New York Stock Exchange in October of 2018 and hasn’t slowed down since. Its Aurora Sky and MedReleaf Bradford facilities have been fully licensed by Health Canada to produce and sell cannabis and cannabis derivatives, which will add over 128,000 kg per year in capacity.
ACB has also continued to expand into the European market, acquiring 51% ownership of Giai Pharm Lda. in Portugal and commencing cannabis oil sales to German pharmacies. The company also made its first commercial export of medical cannabis to the United Kingdom, making it one the first Canadian companies to commercially supply medicinal marijuana to the UK under the new legal framework.
Other strategic partnerships made by Aurora include Radient Technologies Inc. (TSXV:RTI), Hempco Food and Fiber Inc.(TSXV:HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Capcium Inc. (private), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), Alcanna Inc. (TSX: CLIQ) and High Tide Inc. (CSE: HITI).
Canopy Growth Corp.
Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) was the first publicly traded cannabis company in North America and is now one of Canada’s most praised pot stocks. With operations in 13 countries over five continents, Canopy has established itself as a world-leading diversified cannabis and hemp company. The company, which cultivates and sells both medical and recreational marijuana in a variety of forms, saw a major uptick following legalization and quadrupled their sales in the fourth quarter of 2018.
The company has positioned itself to become the king of CBD this year and the passing of the US farm bill further solidified their top spot. Canopy began adding hemp assets to its portfolio in 2016 and then investing in field-scale operations in 2017 in an effort to vertically integrate its hemp business to mirror the cannabis side of their business.
Canopy Growth brings strong partnerships, years of marketing expertise and deep pockets to the pot stock market and continues to make strategic moves to grow its business and extend to new markets. Most recently, the company reported an investment of $100 million and a further $150 million to create a large-scale hemp production facility and is scouting sites in the Southern Tier in New York.
Canopy also teamed up with retail executive and television personality Martha Stewart to develop a line of CBD products for both humans and pets.
Incorporated in 2018, Tilray Inc. (NASDAQ:TLRY) is a Canadian-based pot stock that is primarily focused on the research, production and distribution of medical marijuana. However, the company entered the hemp market late last year when it signed a supply agreement with LiveWell Canada Inc. (CSE:LVWL) with the intent to purchase and then sell CBD to the US and Canada. The company increased its presence in the hemp market with the acquisition of Manitoba Harvest, a massive vertically-integrated hemp food producer that supplies roughly 16,000 retail stores across North America, including big box brands like Walmart, Costco, and Amazon.
Tilray has also been expanding further in the retail market and currently supplies cannabis across 11 countries. Recently, the company was chosen as one of 14 companies to fulfill the Nova Scotia Liquor Corporation (NSLC) purchase order for recreational marijuana in the province.
Cronos Group (NASDAQ:CRON) is a geographically diversified and vertically integrated cannabis company that has international production and distribution platforms and partnerships reaching across five continents.
The company recently closed the $2.4 billion CAD deal with Altria Group (NYSE:MO), which gave the tobacco giant a 45% stake in Cronos. This deal is considered a big win for Cronos Group, as Altria brings with it years of global expertise, well-known global brands, and a loyal consumer base.
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