Five Cannabis Stocks to Consider for Long-Term Growth
In the most recent Midterm elections Michiganders voted to pass Proposition 1 which legalized marijuana for recreational use. Cannabis culture is rapidly going mainstream (although it is still illegal at a federal level in the United States). Marijuana is now legal recreationally in 10 states and legal for medical purposes in 33 states. In addition to these state level legalizations Uruguay and Canada have passed legislature legalizing recreational cannabis country-wide. But no matter where you live the best “high” you can get from Cannabis is in potential sky-high returns in your cannabis portfolio. To help you out here are five publicly traded marijuana stocks to consider:
Aurora Cannabis (NYSE: ACB)
This Vancouver based Cannabis producer has the munchies – for growth. In addition to buying up cannabis producers (such as H2 Biopharma, CanniMed and MedReleaf) they have smartly snatched up a number of ancillary companies to support their operations. Aurora purchased BC Northern Lights, a manufacturer of indoor growing supplies, and Aurora-Larssen Projects, a greenhouse engineering and design consultancy firm. Most notable for its growth potential is Aurora’s purchase of German based Pedanios GmbH in 2007. Pedanios is Germany’s largest cannabis distributor to pharmacies (medical cannabis is legal in Germany while recreational is not). Pedanios has EU GMP certification (the highest certification attainable by pharmaceutical companies to distribute their product in the European Union) and Aurora is laying the groundwork to supply medical cannabis to the EU, with a recent shipment to by Aurora to Italy being the first ever by a private company.
The Green Organic Dutchman (OTCQX: TGODF)
This Mississauga based company is a cannabis producer focused on research and development. They are looking to refine the genetics of medical grade cannabis strains. They are building facilities that grow organically. Organic cannabis fetches a higher price per gram and is expected to rise in demand as consumers look to buy pesticide-free products. In addition, they have operations in 17 countries revolving around growing hemp and the production of CBD oil (rules for growing hemp are less stringent than Cannabis). But don’t think that they’re only focused on the medical market- the company has recently announced a partnership with Velvet Management Inc to fast-track supplying Canada’s provinces with Cannabis (Velvet Management Inc. is a new company created by and with connections to Canada’s largest wine distributor Philippe Dandurand Wines). With this partnership The Green Organic Dutchman has a red velvet carpet laid out as it builds relationships with provincial distributors.
Aleafia Health (TSXV: ALEF)
Aleafia Health is a vertically integrated medical cannabis company. They help patients find the right prescription and have the facilities to grow it too. They boast the largest network of cannabis clinics with 22 across Canada and a patient list of over 50,000 members. Their Aleafa Labs division partners with leading institutions including universities, clinical researches and other cannabis companies to improve the science behind medical cannabis. They’re currently undertaking a project to tackle replacing addictive sleep medication with a cannabis based alternative. If you’re looking for a company with friends in high places look no further: company co-founder and chairman Julian Fantino was a politician before getting into the cannabis sector and was the head of Toronto’s police division before that.
LGC Capital Ltd. (TSXV: LG)
This Canadian headquartered Cannabis investment company has global ambitions and portfolio to boot. They own stakes in cannabis projects in Canada, Jamaica, Italy, Australia, Switzerland and the United Kingdom. In addition to convertible debt and equity stakes they have also smartly negotiated royalty payments in four of their portfolio companies. By 2020 they expect to have 2.1 million square feet of planted Cannabis growing.
Ascent Industries Corp (CSE: ASNT)
This British Columbia based Cannabis company has operations in Canada, the United States and Europe. Ascent is one of the only Canadian licensed producers of Cannabis to have produced and sold cannabis related branded products in recreational and medical markets in the United States. This company is serious about R&D and since 2013 it has done research focused on developing products and intellectual property with Simon Fraser University. The research initiatives are targeting cultivation, extraction, hardware and medical applications.
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