Shares of Canadian licensed producer (LP) CannTrust Holdings (TSX:TRST) took a hit early on Monday (October 1) after the company announced a new executive leader two weeks away from adult-use legalization in Canada.

Eric Paul, co-founder and CEO of CannTrust, confirmed his decision to step down from the role to make room for Peter Aceto as the new executive in charge. Aceto previously served as the CEO for online bank Tangerine.


CannTrust suffered a lag start to the trading week immediately following the departure of Paul. As of market close, shares of the company dropped 2.05 percent to finish with a price of C$12.45. During the day the stock reached a low of C$12.

 

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Paul is not leaving the company entirely; he will step in as chairman of the board and will serve as a special advisor to the management of the company.

“It has been a great honour to serve as the CEO of CannTrust since its inception only five years ago. I take great pride in our team’s collective accomplishments and the incredible progress we have made in such a short period of time,” Paul said in the press release.

Aceto said CannTrust holds “limitless” opportunities ahead of itself. Canada is set to legalize recreational cannabis on October 17 and, despite such a critical time for the industry, Paul indicated the timing was just right for this transition.

CannTrust will make an entry into the recreational market due to its supply agreements with Ontario, Nova Scotia, New Brunswick, PEI, Newfoundland, BC, Alberta and Manitoba.

Thanks to these deals, adult-use cannabis products from the producer’s three recreational brands are guaranteed to become available to legal consumers.

At the same time pot stocks have raised the profile of the entire market, CannTrust’s value has lagged behind its competitors, according to financial experts.

As part of the Investing News Network’s (INN) Q2 cannabis update, Arthur Kwan, CEO and co-portfolio manager for CannaIncome Fund and managing partner with Athena Capital Advisors, said he valued the company despite not being as flashy as its rivals.

“We like the company because it’s a company that’s undervalued relative to its peers,” Kwan, whose fund invested in TRST, told INN in July.

CannTrust upgraded its shares from the Canadian Securities Exchange (CSE) to the Toronto Stock Exchange (TSX) in March. Since then, shares of the company have fluctuated significantly ahead of cannabis legalization.

 

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Since its uplisting on the TSX, the company’s share price has risen 38.75 percent in value to reach a C$1.28 billion market capitalization.

One potential aspect that could boost TRST is a premier US exchange listing following in the footsteps of Cronos Group (NASDAQ:CRON,TSX:CRON) and Canopy Growth (NYSE:CGC,TSX:WEED).

CannTrust has hinted at the possibility of a Nasdaq listing, according to a tweet from chief investment officer for CB1 Capital, Todd Harrison. Paul later told The Globe and Mail he hadn’t made up his mind about the US listing.

“It’s a consideration, but we don’t have a definitive plan for it. No decision has been made to list,” he said in September.

It’s unclear whether new management will pursue the US listing more aggressively.

Aurora Cannabis (TSX:ACB) unveiled its intentions to obtain the coveted listing as part of its Q2 update to shareholders.

Meanwhile, fellow cannabis producer Tilray (NASDAQ:TLRY) was the first Canadian producer to list directly on a US exchange instead of uplisting from a Canadian counterpart.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

 

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Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) today announced that Philip Young, CEO and Director, will present virtually at the Benzinga Healthcare Small Cap Conference taking place September 29-30, 2021.

Philip Young, CEO and Director will begin his presentation at 10:30 A.M. ET on Wednesday, September 29, 2021.

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Celebrates Canadian launch of the award-winning Keef Brands in Ontario with additional provincial shipments underway

Emerging leader in innovative health and wellness beverages and products, BevCanna Enterprises Inc. ( CSE:BEV , Q:BVNNF , FSE:7BC ) (“ BevCanna ” or the “ Company ”) is excited to announce the shipment of its award-winning Keef Brands cannabis-infused beverages to the Ontario Cannabis Store (OCS). The Keef products will be available in Ontario retail locations across the province and online at ocs.ca in October 2021 and are also expected to hit British Columbia and Alberta shelves by early November 2021.

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US cannabis received a boost this week with a policy move that may hint at future changes.

Meanwhile, Amazon (NASDQ:AMZN) threw its full support behind cannabis reform in the US by way of a public post confirming the company’s acceptance of the drug.

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  • Research findings originated from cannabinoid-based collaboration with leading epilepsy researcher, Dr. Peter Carlen, at UHN that is also supported by a Mitacs Accelerate program grant.
  • Avicanna’s proprietary formulation showed promising pre-clinical results in reducing seizures and will be developed through the company’s pharmaceutical development pipeline as an epilepsy drug candidate.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS/

Avicanna Inc. (” Avicanna ” or the ” Company “) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based pharmaceuticals is pleased to announce that it has filed a provisional patent application with the United States Patent and Trademark Office, entitled “Methods for Reducing or Eliminating Incidence of Seizures and Sudden Unexpected Death in Epilepsy”, on the use of a novel cannabinoid formulation (the “ Formulation Candidate ”).

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Cannabis legalization in Canada helped kickstart a financial revolution in the stock market with the launch of a diverse portfolio of marijuana firms.

With the boom of public cannabis businesses in full swing, are you thinking about investing in cannabis companies? If so, consider starting your journey here.

A wide spectrum of marijuana stocks have made their mark in the global industry thanks to the amount of money raised from investors and the attention the sector is getting from established industries.

 

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What’s to come is anyone’s guess, but it seems this new and burgeoning industry is still in its early days, with diverse nations beginning to move forward with plans for legalizing marijuana.

That means there’s likely still money to be made in cannabis stocks as the market builds and cannabis products expand in availability over the next few years.

There are many differing opinions about how much the global legal cannabis market will be worth in the years to come, with estimates including US$70.6 billion by 2028 and US$91.5 billion by that same year.

But one thing is almost certain: The market is set to grow as opinions surrounding the plant evolve over time and as platforms crop up to supply different consumption preferences. And all of that will mean more cannabis investment opportunities with both existing companies and future entries to the market.

For now, let’s take a look at where you can invest your money at this point in time.

How to invest in cannabis: Canadian cannabis stocks

First thing’s first: Canada. This is the obvious place to start as marijuana is legal at the federal level and Canadian cannabis stocks are less likely than their US counterparts to suffer from political volatility.

That said, due to the uncertainty of investing in the US marijuana space, where the drug is not legal at the federal level, Canadian firms have been forced to make choices about how they operate. For example, Canada’s senior exchanges do not allow companies with American cannabis assets to list.

While the Canadian cannabis space continues to face challenges, investors are eagerly watching as companies move into the edibles and beverages markets and develop new products.

For lists of Canadian marijuana stocks to consider, click here.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
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How to invest in cannabis: US cannabis stocks

Although some US states have legalized cannabis, American cannabis stocks may be riskier than those in Canada due to federal restrictions on the sale and cultivation of cannabis.

However, as the saying goes, the greater the risk, the greater the possible reward. The US market could grow up to US$43 billion by 2025, and that’s not even including the size of the market if nationwide legalization happens. It’s easy to see that US cannabis stocks could inherit a huge chunk of the pie if federal law finally legalizes the commodity.

All in all, picking the right US cannabis stocks could mean massive gains if the plant is ultimately legalized federally. It’s worthwhile for investors to do their research and to be aware of the risks and potential benefits involved in investing in the space.

For a list of US cannabis stocks to consider, click here.

How to invest in cannabis: A side note

Many companies in the cannabis space have begun to veer in one direction or another.

For example, some of the largest marijuana producers have moved towards deals with beverage or pharmaceutical companies for the production of novel new products. Others in the space continue to pursue innovation in the recreational market.

The beverage side in particular has seen interest from companies, with cannabis firms partnering with brew businesses. One example is Canopy Growth (NYSE:CGC,TSX:WEED), which has teamed up with Constellation Brands (NYSE:STZ), a leading producer in the alcoholic beverage industry.

It’s important to be aware that each niche has its own possibilities and challenges. For instance, while many market participants are convinced of the promise in beverages, these drinks have been hampered by strict marketing rules, among other factors.

Another aspect to consider is whether to pursue big caps or small caps. That has a lot to do with personal comfort. While big caps are often regarded as more stable than small caps, in the cannabis industry there’s been considerable volatility.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
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How to invest in cannabis: Cannabis ETFs

If you really know your cannabis companies, then you could enjoy larger gains by simply investing in those specific firms. However, if you aren’t overly familiar with the cannabis space or you are new to it, it could be a good idea to check out the cannabis exchange-traded funds (ETFs) available.

A cannabis ETF gives you exposure to several different cannabis stocks and takes the guesswork out of cherry picking which stock to bet on. One issue with ETFs is that like any other group dynamic, if one stock drops off it brings the whole fund down proportionally with it. Of course, the opposite is also true.

Recently investors have seen the addition of new ETFs offering exposure to the US market, including firms with entries into the hemp space, thanks to the sales of CBD products.

For a list of cannabis ETFs to consider, click here.

How to invest in cannabis: Final thoughts

No matter which way you slice it — or grind it, in this case — the cannabis market is an exciting business to invest in right now. Whether you invest in cannabis ETFs or Canadian or US marijuana stocks, or if you’re still waiting on the sidelines for more maturity from the types of cannabis companies trading, this industry is one to watch, and one that looks like it’ll keep climbing in the future.

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