So far this year, one of the most impressive groups across the market has been the cannabis stocks. This should come as no surprise to anyone with a pulse and an online trading account. The run that we have seen in many of these stocks is likely predicated on overall growth as well as the approaching full legalization of recreational marijuana in Canada, which is expected to hit on October 17 – just a couple weeks from now.
There are a number of stocks that may present interesting opportunities ahead of that data, but we want to focus on three of the most interesting: Aurora Cannabis Inc (OTCMKTS:ACBFF), Wayland Group Corp. (OTCMKTS:MRRCF), and Canopy Growth Corp (NYSE:CGC).
Aurora Cannabis Inc (OTCMKTS:ACBFF), through Aurora Cannabis Enterprises Inc, trumpets itself as “one of the world’s largest and leading cannabis companies” and a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR).
The Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, known as Aurora Mountain, is currently constructing a second 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport, and has acquired, and is undertaking completion of a third 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’s West Island.
In addition to the Company’s rapid organic growth and strong execution on strategic M&A, which to date includes 15 companies – MedReleaf, CanvasRX, Peloton Pharmaceutical, Aurora Deutschland (formerly Pedanios), H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia Labs, HotHouse Consulting, Agropro, Borela, and the pending acquisition of ICC Labs – Aurora is distinguished by its reputation as a partner of choice and employer of choice in the global cannabis sector.
The company has invested in and established strategic partnerships with a range of leading innovators, including: The Green Organic Dutchman Holdings Ltd. (TSX: TGOD), 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), Namaste Technologies Inc. (TSXV: N), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX: CLIQ).
This massive list of strategic investments has caused some to call it the Berkshire Hathaway of the cannabis space.
Wayland Group Corp. (OTCMKTS:MRRCF) is a vertically integrated producer and distributor of cannabis for medical purposes. The Company was founded in 2013 and is based in Burlington, Ontario, Canada and Munich, Germany, with production facilities in Langton, Ontario where it operates a medicinal cannabis cultivation, extraction, formulation and distribution business under federal licence from the Government of Canada. The Company also has production operations in Dresden, Saxony, Germany and Regensdorf, Switzerland. Wayland is currently undertaking an expansion of its cultivation and support facilities in Canada in a 942,000 sq. ft. (87,515 sq. m) and will continue to pursue new opportunities in Europe.
Wayland Group Corp produces and sells marijuana for medical purposes. It offers dried marijuana, cannabis oil, and cannabis seeds and clones, as well as accessories, including vaporizers and other paraphernalia. The company was founded in 2013 and is headquartered in Burlington, Canada.
Wayland Group Corp is a publicly traded medical cannabis company that serves thousands of patients. Wayland Group Corp. is currently expanding its cultivation, extraction, analytics and production facilities to elevate offerings and prepare for growth into the adult-use cannabis market in Canada, and ultimately into mature and developing cannabis markets worldwide. With dedication to quality, integrity, authenticity, approachability and innovation, Wayland Group Corp. strives to exceed expectations and industry standards.
MRRCF has a significant war chest ($6.3M) of cash on the books, which compares with about $9.9M in total current liabilities. MRRCF is pulling in trailing 12-month revenues of $2.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 82.3%.
Shares are interesting in recent action, having pulled back to test key support in the area of the rising 50-day simple moving average, which could provide traders with an interesting setup opportunity.
Canopy Growth Corp (NYSE:CGC) is one of the bigger growers in the industry. The company produces and sells medical marijuana in Canada. It offers dry cannabis and oil products primarily under the Tweed and Bedrocan brands. It also sells its products online.
According to company materials, “Tweed is the most recognized marijuana production brand in the world. It has built a large and loyal following by focusing on quality products and meaningful customer relationships. Tweed doesn’t just sell marijuana, it facilitates a conversation about a product we’ve all heard about but haven’t met intimately yet. It is approachable and friendly, yet reliable and trusted. As marijuana laws liberalize around the world, Tweed will expand its leading Canadian position around the globe.”
Also from their materials, “Bedrocan is the epitome of medical-grade cannabis. Bedrocan BV pioneered medical cannabis in Holland through decades of selection and refinement, leading to standardized, whole bud cannabis strains that patients can rely on. Bedrocan Canada supplies the same standardized strains to the Canadian market through exclusive licensing rights to the American continents, an arrangement it will also enjoy for all future genetic advancements. Due to its consistency over time, Bedrocan’s strains have been used in clinical research in seven European countries. That commitment to research didn’t stay on the east side of the Atlantic – Bedrocan Canada recently launched one of the largest clinical cannabis studies in the world, the EQUAL Study, to evaluate quality of life before and after medical cannabis use.”
CGC shares have been consolidating over the past three weeks, with traders eyeing a possible breakout if the stock manages to climb back above the $55/share level.