At the recent MoneyShow event in Toronto, would-be and seasoned investors were exposed to the latest market intelligence on one of the most provocative sectors today: marijuana.

As cannabis legalization shifts toward edibles in Canada and toward growing state-level acceptance in the US, new investment opportunities have sprung up in the cannabis market.


In case you missed it, the Investing News Network (INN) took to the conference floor to get insights on the burgeoning cannabis industry.

During a presentation, Sean Brodrick, editor at Marijuana Millionaire Portfolio, said the current dip the industry is experiencing is a chance for investors to buy ahead of a “seasonal rally” that will see stocks rise again as the year goes on.

Brodrick added that investment opportunities in cannabis in the US could be boosted by the upcoming federal election as democratic candidates fight for cannabis legalization.

The industry is also vulnerable to threats, according to Brodrick. He said the recent vaping scare and corporate blunders — like CannTrust Holdings’ (NYSE:CTST,TSX:TRST) illegal growing debacle — are real impediments to the sector.

Some of the trends Brodrick picked out were the increasing commoditization of cannabis, which forces companies to compete with players in countries like Colombia, where growing can be done outdoors at a fraction of the price of greenhouse production.

Brodrick also highlighted the discovery of more cannabinoids as another trend that encompasses increased clinical cannabis research.

As part of his talk, Brodrick offered investors a collection of his own stock picks for cannabis.

He listed Organigram Holdings (TSXV:OGI,NASDAQ:OGI) as his top pick, mentioning the company will be dropping its growing costs and pushing for the cannabidiol (CBD) sector.

Brodrick also mentioned a collection of US firms: Nevada-based Planet 13 Holdings (CSE:PLTH,OTCQX:PLNHF), CBD producer Charlotte’s Web Holdings (TSX:CWEB,OTCQX:CWBHF) and Florida-based multi-state operator Trulieve Cannabis (CSE:TRUL,OTC Pink:TCNNF).

The show also featured presentations from marijuana giant Aurora Cannabis (NYSE:ACB,TSX:ACB) and recently launched cannabis firm 4Front Ventures (CSE:FFNT,OTCQX:FFNTF).

Aurora’s director of investor relations, Robert Kelly, said the company is focusing its efforts on medical and recreational cannabis, as well as hemp-derived CBD. Kelly added the company will be participating in the upcoming edibles market in Canada with gummies, chocolates and baked goods, and there is a potential beverage line on the horizon.

Aurora’s biggest goal for the upcoming fiscal 2020 year is expansion into the US, Kelly said, mentioning Aurora’s recent revenue of C$98.9 million in the latest quarter as a selling point.

Andrew Thut, 4Front’s chief investment officer, said that now the cannabis industry has begun to settle, investors should consider operations as their main focus when picking stocks.

“I think investors really should be looking for the asset base and the talent to be a long-term winner, proven battle-tested operations,” said Thut.

He mentioned that early on, companies would tout their multi-state presence in the US as a marker of success, but things have since changed and now companies are trying to focus their activities.

“Yes, addressable market matters. But I don’t care how many states you’re in, are you actually good in those states?” the executive said. He added that being a “magnet for talent” will be a deciding factor that puts some companies ahead of others.

The future of the cannabis industry was the main point of discussion during the event’s final marijuana panel.

Ian deQueiroz, CEO of CBD company HempFusion, said the market still has room to grow into maturity.

“We’re not seeing, I don’t think, really successful … companies expanding nationwide or internationally in that marijuana cannabis space as far as real revenues go. But there’s going to be an opportunity there, I think, for the franchise dispensaries,” deQueiroz said.

When it comes to company growth, Steve Hawkins, CEO of Horizons ETFs (Canada), said the market will experience a lot more consolidation in Canada and the US. He also said cannabis is proving to be a dangerous sector to other, more established industries.

“I think big pharma, big tobacco, big alcohol are seeing the cannabis companies taking too much out of their future revenues,” said Hawkins. “They’re going to be wanting to get into this game at some point in time — they’re not going to do it from grassroots building a company anymore, they’re going to do by acquisitions.”

Don’t forget to look for the rest of our coverage of The MoneyShow Toronto, with more insights from the show. You can also follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms, is pleased to announce the appointment of Mr. Al Reese, Jr., to its Board of Directors

Mr. Reese has over 40 years experience in public and private businesses including as CFO of a formerly Nasdaq-listed energy company where he arranged finance transactions totaling over $10 billion dollars during his 20-year tenure. Mr. Reese was a Director and Chairman of the Audit Committee of a community bank in Texas for ten years until such time as it was acquired by a larger banking group in 2018.

Keep reading... Show less

Mexico looks to be closer than ever to cannabis reform, with the country releasing its regulation plans to make the drug legal in medical settings.

Meanwhile, despite the financial hardships seen recently in the Canadian cannabis market, CEOs in the country are still receiving top dollar, as per a new study.

Keep reading... Show less

Not for Distribution to United States Newswire Services or for Dissemination in the United States

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today the pricing of its previously announced best efforts overnight marketed offering (the “Offering”) of subordinate voting shares (the “Offered Securities”) of the Company at a price of C$16.00 per share for a total gross proceeds of approximately US$125 Million. The issue price represents a 3.3% discount to the last close of the Company’s subordinate voting shares traded on the Canadian Securities Exchange as of January 14, 2021. 100% of the Offering is expected to be purchased by a total of seven new and existing institutional investors, including current shareholder, Wasatch Global Investors.

Keep reading... Show less

Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN) Red Light Holland (OTC: TRUFF) (CSE: TRIP) and Aphria, Inc. (NASDAQ: APHA).

Investors are cheering new and expected legislation which is opening new market opportunities for both cannabis and psychedelics globally. Innovation in premium branding, growing technologies, manufacturing, with operational execution are key, in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders in cannabis and psychedelics:

Keep reading... Show less

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company”) today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,828,571 units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock at a public offering price of $5.25 per unit (all prices in US$). The warrants have an exercise price of $6.58 per share, are immediately exercisable and will expire five years following the date of issuance. In connection with the Offering, the underwriter exercised in full its option to purchase an additional 274,285 shares of common stock and additional warrants to purchase 274,285 shares of common stock. The gross proceeds from the Offering were approximately $11.04 million, before deducting underwriting discounts and estimated offering expenses. No securities were offered or sold in Canada, including through the CSE or any other trading market in Canada

H.C. Wainwright & Co. (“Wainwright”) acted as the sole book-running manager for the Offering and is a non-related party to the Company.

Keep reading... Show less