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Business Marijuana MMJ Stocks

Green Wave Election Shines Spotlight on Weed Stocks (IIPR, GTBIF, SGMD, TCNNF)

We are now just days away from an election that promises to be divisive in almost every respect for America but one.

Americans are polarized and divided across basically every major issue, with a culture war of unprecedented depth coming to a head in what promises to be a deeply contentious election night on November 3. But there’s one thing that everyone seems to agree on: weed is a consumer product, rather than an illegal narcotic. At least, that’s the consensus among analysts heading into the casting of ballots, where five states (both red and blue) are expected to move toward further legalization.

If true, it would represent the third straight “green wave” election, and take us closer and closer to a seemingly inevitable national decriminalization, which has already been stated as part of the Biden/Harris platform, with Biden now surging in the polls toward a possible landslide victory.

With that in mind, pot stocks could be on the menu for some momentum gains ahead. Hence, we take a look here at a handful of compelling names in the space, including: Innovative Industrial Properties Inc (NYSE:IIPR), Green Thumb Industries Inc (OTCMKTS:GTBIF), Sugarmade Inc (OTCMKTS:SGMD), and Trulieve Cannabis Corp (OTCMKTS:TCNNF).

 

Innovative Industrial Properties Inc (NYSE:IIPR) is interesting in this context given its unique positioning in the marketplace. The company is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities.

The company touts itself as the first and only real estate company on the New York Stock Exchange focused on the regulated U.S. cannabis industry.

Innovative Industrial Properties Inc (NYSE:IIPR) just recently announced that it entered into an amendment of the lease with a subsidiary of Green Thumb Industries Inc. in Toledo, Ohio, making available an additional $25.0 million in funding for the construction of a cannabis cultivation facility, which is in addition to the existing medical cannabis processing facility on the property.

According to the release, the lease amendment also adjusted the base rent under the lease to take into account the additional available funding and extended the term of the lease agreement. Assuming full payment of the additional funding, IIP’s total investment in the property will be $32.2 million. In addition to this facility in Toledo, Ohio, IIP owns and leases to Green Thumb’s regulated cannabis cultivation and processing facilities in Oglesby, Illinois and Danville, Pennsylvania. Assuming full reimbursement of tenant improvements under the leases, IIP’s total investment in properties leased to Green Thumb is expected to be $121.8 million.

The stock has suffered a bit of late, with shares of IIPR taking a hit in recent action, down about -4% over the past week.

Innovative Industrial Properties Inc (NYSE:IIPR) managed to rope in revenues totaling $24.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 182.5%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($384.9M against $0).

 

Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.

According to company materials, “Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.”

Green Thumb Industries Inc (OTCMKTS:GTBIF) just announced it opened Rise Monroeville, its 49th retail location, on October 21. According to the release, profits from the first day of sales will be donated to 412 Food Rescue, a non-profit that works with food retailers, wholesalers, restaurants, caterers, universities and other food providers to rescue unsellable but perfectly good food and provide it to nonprofit organizations that serve those experiencing food insecurity.

“We are thrilled to open the 13th Rise™ store in Pennsylvania as we continue to create jobs across the state,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “The team is also honored to support 412 Food Rescue’s important work of collaborating with community businesses and organizations to help eradicate hunger, especially during these difficult times.”

If you’re long this stock, then you’re liking how the stock has responded to the announcement. GTBIF shares have been moving higher over the past week overall, pushing about 4% to the upside on above average trading volume.

Green Thumb Industries Inc (OTCMKTS:GTBIF) generated sales of $165.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 20.1% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($113M against $181.8M, respectively).

 

Sugarmade Inc (OTCMKTS:SGMD) is a major stakeholder in its BudCars cannabis delivery business, which has driven the lion’s share of the company’s growth over recent quarters.

This is likely to be a strong source of new strategic growth for a company that has already been posting sequential monthly growth above 30% on the topline for several consecutive months after making its flagship investment in BudCars.

The company has also recently announced its plans to expand its BudCars service into new territories in the North Bay, Wine Country, and LA Metro regions, which could sharply expand its growth potential.

Sugarmade Inc (OTCMKTS:SGMD) can be seen as the most speculative name in this list. But it is also rapidly growing and decidedly cheap on a nominal basis, with shares now trading under a penny.

The company’s most recent release points out its strong results for the three months ended Sept. 30, 2020, which featured steadily strong gross margins, nearly $2 million in gross receipts, and more than 60% growth in net sales, customer orders and gross profits on a sequential quarterly basis.

According to the release, total Sept/Q BudCars gross receipts over $1.9 million ($1.55 million, net of sales taxes), representing 66% quarter over quarter sales growth, total Sept/Q BudCars gross profits of $903,667, representing 64% quarter over quarter gross profit growth on steady 47% gross profit margins, average daily gross sales increased 68% Q/Q to $21,246, and total customer tickets increased 62% Q/Q on 3% growth in average ticket size.

“BudCars continues to perform, setting records in basically every key metric we track,” stated Jimmy Chan, CEO of Sugarmade. “It was a tremendous quarter, with a big jump in customers and regional market share and robust margins on every sale. That paints a very motivating picture as we gear up to significantly expand our service territory, with upcoming expansion into the North Bay and Wine Country areas, as well as our upcoming grand opening of BudCars LA.”

Sugarmade Inc (OTCMKTS:SGMD) could be an interesting opportunity given this robust growth data and its stated plans to expand strategically and geographically. In a context that may favor the space, this stock may merit further due diligence given where shares trade now. The current top-line run rate suggests an annualized potential that adds up to a valuation around 0.25x forward sales, which is about a tenth of the level we see in other stocks in the space.

 

Trulieve Cannabis Corp (OTCMKTS:TCNNF) is one of the biggest and most successful US cannabis MSO’s, offering a suite of branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

According to company materials, the company is a vertically integrated “seed to sale” player operating as the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced the opening of a brand-new Florida dispensary, the Company’s 65th nationwide. According to the release, the new Bradenton dispensary will be the second Bradenton location to bring the Company’s wide-ranging catalog of medical cannabis products directly to patients across Manatee County. Located on Manatee Avenue West, the new dispensary supports Trulieve’s goal of expanding and ensuring direct, reliable patient access to medical cannabis across its home state of Florida. It joins the Company’s 62 other dispensaries statewide, including the original 14th Street Bradenton location, as well as those in nearby St. Petersburg, Sarasota, and several more throughout the Tampa Bay area.

“The Bradenton community in particular has been incredibly supportive of us since we opened our first location here in 2017. We look forward to being a part of this community for years to come,” said Trulieve CEO Kim Rivers. “From our first store in Florida, our focus has remained on expanding access to the safe and reliable medications patients ask for, and we continue that today with our 63rd store in the state.”

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 11% in that timeframe.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) pulled in sales of $167.3M in its last reported quarterly financials, representing top line growth of 115.9%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($204.7M against $136.3M).

 

 

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

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Business Headlines Marijuana MMJ Stocks Technology

Why Pot Stocks Should be on the Radar (TCNNF, GRWG, SGMD, CURLF)

Huge margins and a rapidly expanding total addressable market (TAM). That’s the answer. It’s just about all you need to know as far as why taking a good hard look at cannabis stocks may make sense for investors.

In terms of margins and relative change in TAM over time through shifts in the legislative landscape, there’s no other market space that offers the same powerful opportunity in the years ahead according to analysts and growth managers.

The stocks in the space took a huge hit into what suggests itself as a possible cycle low in an ongoing structural expansion, and the problems are the balance sheets of the former leaders, which has tainted perception of the space. But ACB, TLRY, CGC, and their ilk don’t really reflect the broad dynamics in play, which may set the stage for a powerful period ahead for the leaner, meaner names in the space.

And a looming election that promises to expand the TAM further through more state legalizations has the ability to act as a big catalyst ahead.

As such, we put together a list of some interesting stocks in the space that could represent strong opportunities for speculators over the coming period, including: Trulieve Cannabis Corp (OTCMKTS:TCNNF), GrowGeneration Corp (NASDAQ:GRWG), Sugarmade Inc (OTCMKTS:SGMD), and Curaleaf Holdings Inc (OTCMKTS:CURLF).

 

Trulieve Cannabis Corp (OTCMKTS:TCNNF) engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States. It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

According to company materials, Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced the launch of two new flavors to the TruPowder line: Vanilla Cream and Lemon. The TruPowder flavors will be available in all dispensaries across Florida starting today. TruPowder is a Nano-encapsulated Cannabinoid powder. Using cutting edge and state of the art technology TruPowder uses sound waves (sonication) to achieve incredibly small nano-sized Cannabinoids which are then encapsulated.

“Trulieve is excited to be launching our newest flavors of Vanilla Cream and Lemon to our TruPowder line. We are focused on delivering an exceptional and differentiated customer experience, and that includes offering the broadest selection of high-quality cannabis products,” said Trulieve CMO Valda Coryat. “Trulieve continues to be the leading source for both quality and accessibility, and were first to offer ingestible products in the state of Florida.  With our newest TruPowder flavors, that will further extend our variety of cannabis offerings for Florida patients.”

If you’re long this stock, then you’re liking how the stock has responded to the announcement. TCNNF shares have been moving higher over the past week overall, pushing about 7% to the upside on above average trading volume.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) pulled in sales of $167.3M in its last reported quarterly financials, representing top line growth of 115.9%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($204.7M against $136.3M).

 

GrowGeneration Corp (OTCMKTS:GRWG) owns and operates retail hydroponic and organic gardening stores in the United States.

Currently, GrowGen has 27 stores, which include 5 locations in Colorado, 5 locations in California, 2 locations in Nevada, 1 location in Washington, 4 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma, 1 location in Oregon, 3 locations in Maine and 1 location in Florida. GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTCMKTS:GRWG) just announced that it believes it has uncovered fraudulent attempts to manipulate the Company’s stock.

On August 21, 2020, an organization calling itself “Hindenburg Research” published false and defamatory statements about certain Officers and Directors of the Company designed to provide a false impression to investors and to manipulate the market to benefit short sellers. According to the release, GrowGen intends to collaborate with law enforcement and regulators to ensure that any criminal activity is investigated and prosecuted. GrowGen will be taking steps to ensure that the organization ceases and desists from all illegal and otherwise wrongful activity. GrowGen will vigorously defend the value of the Company on behalf of shareholders and investors.

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 6% in that timeframe. GRWG shares have been relatively flat over the past month of action, with very little net movement during that period.

GrowGeneration Corp (OTCMKTS:GRWG) managed to rope in revenues totaling $43.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 123%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($14.8M against $18.8M, respectively).

 

Sugarmade Inc (OTCMKTS:SGMD) operates in an expanding context broadly in the cannabis space, with a major stake and operational control in California cannabis delivery service, BudCars, representing a major part of the company’s strategic outlook.

Sugarmade’s BudCars model has been feasting on increasing market share during the pandemic for obvious reasons: cannabis consumers can order their favorite products and have them delivered right to the door in touchless convenience. That dynamic has presented SGMD shareholders with a dramatic boom over recent months.

Sugarmade Inc (OTCMKTS:SGMD), to further drive expansion for its shareholders, recently powered into the domain of verticalization and cultivation with its announcement of a lease agreement to take over a property where it plans to set up and operate a licensed cannabis cultivation business capable of producing as much as 3.6 million grams of high-quality cannabis flower per year in Northern California.

According to the release, the Company intends to market the cannabis through various distributors as both white-label and branded cannabis products, including through BudCars. The process of obtaining cannabis cultivation licensing for the Property has commenced, with the Company now preparing archaeological and biological surveys and assembling documentation related to the architectural and engineering plans for construction of greenhouses and a processing building. The full package has yet to be submitted, but management is in close communication with the County and County representatives have been very helpful with the process.

Jimmy Chan, Sugarmade’s CEO, commented, “We believe we have all of the strategic pieces in place to capitalize on cultivation, with the market currently chronically undersupplied. We also have relationships in place, especially through our BudCars investment, to hit the ground running on the branded products side, driving strong margins up and down the chain.”

Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end.

 

Curaleaf Holdings Inc (OTCMKTS:CURLF) operates as an integrated medical and wellness cannabis operator in the United States. Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles. The company also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations.

Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced the grand opening of Curaleaf Brandon, the company’s 31st location in Florida. The new location, located at 846 E. Brandon Blvd, is the third new dispensary in the Tampa / St. Petersburg / Clearwater metropolitan area this quarter.

Curaleaf is committed to serving the growing base of 394,000 registered medical patients in Florida, which is one of the nation’s fastest-growing medical cannabis markets in the country. In August, the company opened new dispensaries in Clearwater (2081 Gulf to Bay Blvd.) and South Tampa (3030 W. Gandy Blvd.). The company’s strategic expansion in the Tampa Bay area will provide patients and caregivers expanded access to high-quality medical cannabis products, including Select, America’s #1 cannabis oil brand.

And the stock has been acting well over recent days, up something like 6% in that time. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -7%.

Curaleaf Holdings Inc (OTCMKTS:CURLF) pulled in sales of $162.8M in its last reported quarterly financials, representing top line growth of 150.9%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($167.2M against $176.4M, respectively).

 

 

COMPENSATION DISCLOSURE: Section 17(b) of the 1933 Act requires publishers to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b): Tiger Global Management Partners LLC has compensated a third party to produce and present weekly content for various companies for the publication. For more information, please click here. In addition, this article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Categories
Marijuana MMJ

Five Cannabis Stocks for the Win (CURLF, GTBIF, TCNNF, SGMD, CRLBF)

It’s not a mystery where to find strong growth. As the bull market rages on, driven by extreme monetary and fiscal policy support amid historic challenges, the only way for investors to truly lose the game is to not play. Just about anything else has been working.

But the chapter ahead will likely take a bit more nuance. The division between the pandemic plays and the rest of the market is obvious. And money managers diversifying between the two are doing well. But it’s not easy to find opportunities that have a viable long-term growth thesis but are still trading at a strong value relative to the market.

One area that could become of increasing interest is in the cannabis space, where the long-term growth outlook is tremendous, but flows have yet to surge into the space. Most cannabis plays are still trading at 1-2x sales despite forward topline growth forecasts above 20% over the coming four quarters.

That’s a disposition that is increasingly rare.

With that in mind, we take a look at five cannabis plays that are actively traded and continue to post strong performance data while making significant investments at a strong ROI, including: Curaleaf Holdings Inc (OTCMKTS:CURLF), Green Thumb Industries Inc (OTCMKTS:GTBIF), Trulieve Cannabis Corp (OTCMKTS:TCNNF), Sugarmade Inc (OTCMKTS:SGMD), and Cresco Labs Inc (OTCMKTS:CRLBF)

 

Curaleaf Holdings Inc (OTCMKTS:CURLF) recently announced the launch of Curaleaf Sublingual Tablets in Florida. These cube-shaped, berry-flavored bites will provide the state’s medical patients with a discreet, sugar-free yet fruity alternative form of medication.

According to the release, Curaleaf’s new Sublingual Tablets, which will be in 30-piece jars, contain 5mg of high-quality cannabis oil per piece, which allows patients to manage their treatment plan with confidence and ease. Each bite, which is made to be ingested orally or sublingually, is translucent in color and features a refreshing “Arctic Berry” flavor. The new product will be sold at all of the Company’s 28 operating dispensaries in Florida with a phased roll-out between August 8th – August 20th. Limited quantities will be released to pre-existing loyalty patients beginning tomorrow, July 30th.

Curaleaf Holdings Inc (OTCMKTS:CURLF) promulgates itself as a company that operates as an integrated medical and wellness cannabis operator in the United States. The Company is the parent of Curaleaf, Inc., a leading vertically integrated cannabis operator in the United States. Headquartered in Wakefield, Massachusetts, Curaleaf, Inc. has a presence in 12 states.

Curaleaf Inc.’s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence.

It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles.

Curaleaf Holdings Inc (OTCMKTS:CURLF) also provides non-cannabis services to licensed cannabis operators in the areas of cultivation, extraction and production, and retail operations. As of November 01, 2018, it operated a network of 29 dispensaries. The company was founded in 2010 and is headquartered in Wakefield, Massachusetts.

 

Green Thumb Industries Inc (OTCMKTS:GTBIF) recently announced that it opened Essence South Durango, on June 27. This has been one of the fastest growing MSO’s in the wider cannabis space.

According to the release, this is Green Thumb’s fifth Essence store in the Las Vegas area and 48th retail location in the nation. Profits from the first day of sales will be donated to Last Prisoner Project, a nonprofit coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry.

Green Thumb Industries Inc (OTCMKTS:GTBIF) bills itself as a company that manufactures and sells various cannabis products in the United States. The company’s cannabis products include flower, concentrates for dabbing and vaporizing, edibles, and topicals.

According to company materials, “Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE(TM) dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven highly regulated U.S. markets. Established in 2014, GTI employs more than 350 people and serves hundreds of thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business.”

Green Thumb Industries Inc (OTCMKTS:GTBIF) markets its products through third-party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name. The company was founded in 2014 and is headquartered in Chicago, Illinois.

 

Trulieve Cannabis Corp (OTCMKTS:TCNNF) just announced the opening of its latest storefront: Tarpon Springs will be home to the Company’s 53rd dispensary in the state of Florida and 55th nationwide.

According to the release, situated next to Lake Tarpon, the dispensary supports Trulieve’s goal of expanding and ensuring direct, reliable patient access to medical cannabis throughout the state. It also joins the Company’s 52 other Florida dispensaries, including those in nearby New Port Richey, Clearwater, and Tampa.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”

Trulieve Cannabis Corp (OTCMKTS:TCNNF) distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.

 

Sugarmade Inc (OTCMKTS:SGMD) is in the process of expanding into the LA area for its BudCars cannabis delivery business. This is likely to be a strong source of new strategic growth for a company that has already been posting sequential monthly growth above 30% on the topline for several consecutive months after making its flagship investment in BudCars.

At this point, based on recent disclosures from the company, we have a clear sense that, not only is the first LA location on track and simply awaiting some factors no doubt slowed by the pandemic – city council isn’t exactly on vacation right now. Crisis mode is the standard setting for most administrative affairs in local government around the country right now. However, the other key piece here is that the second LA BudCars location is ahead of schedule. That’s perhaps even more important here.

Sugarmade Inc (OTCMKTS:SGMD) also recently issued a mid-month performance update for the month of July, which was on pace to set multiple new Company performance records at the time for sales, gross profits, and total customer orders.

According to the release, as of July 14, the Company is now on pace to meet or exceed its target of $650,000 in total sales in July, with well over 5,000 individual customer orders likely this month, suggesting that sequential month-over-month topline growth will be at or above the Company’s target 30% level.

“Our BudCars Sacramento hub continues to demonstrate accelerating growth that suggests we still haven’t really found the ceiling here in terms of period-over-period upside potential,” commented Jimmy Chan, CEO of Sugarmade. “Ultimately, this is gratifying to see because we have taken a unique approach to retail cannabis product distribution.”

Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end.

 

Cresco Labs Inc (OTCMKTS:CRLBF) just announced additional actions in board refreshment and corporate governance to further strengthen its leadership in the cannabis industry, including its move to appoint Carol Vallone.

According to the release, Cresco has appointed Carol Vallone to its board of directors, effective immediately. Ms. Vallone is a well-known business leader, former CEO, and corporate board director, with a strong track record in launching, scaling, and managing global companies… In the past, Ms. Vallone served as President and Chief Executive Officer of leading E-learning companies including WebCT Inc., where she grew the online learning company to cover almost two thousand institutions in seventy countries. She has also served on multiple boards at leading non-profit healthcare, public financial services, and e-commerce organizations.

CRESCO LABS ORD (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.

The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.

Cresco Labs Inc (OTCMKTS:CRLBF) operates a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.

 

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

Categories
Business CBD Marijuana MMJ Stocks

The Cannabis Bull Gets Back into Gear (PLNHF, SGMD, TCNNF, CRLBF)

One sure-shot bet on the future for investors appears to be in the cannabis space. No analyst out there seems to disagree with the long-run growth thesis driving the group. The only real issue seems to be about timing.

On that note, according to our analysis, the group reached a key “generational” low in March of this year when the coronavirus health crisis first began to pose a broad risk to the global economy – one that hasn’t been seen on this level for more than a hundred years, since the Spanish Flu sunk its claws into the economies around the world in 1918.

That catalyst appears to have capitulated a longstanding bear market in the cannabis space that got its start in 2018. The balance sheets have been tested at this point, and the steady legalization process appears to be still underway, suggesting that the double- and triple-digit percentage gain forecasts are still operative, which means right now may be an opportune time to get very interested in names in the cannabis marketplace – the herd has been thinned and what remains are the new leaders.

With that in mind, here are a few names to put on your list: Planet 13 Holdings Inc (OTCMKTS:PLNHF), Sugarmade Inc (OTCMKTS:SGMD), Trulieve Cannabis Corp (OTCMKTS:TCNNF), and Cresco Labs Inc (OTCMKTS:CRLBF).

 

Planet 13 Holdings Inc (OTCMKTS:PLNHF) just announced that it has entered into an asset purchase agreement pursuant to which it has acquired cannabis inventory, equipment and tenant improvements, and subject to regulatory approval will acquire the Nevada cannabis licenses at a 45,000 square foot indoor cultivation and production facility in Las Vegas, Nevada from West Coast Development Nevada, LLC.

According to the release, Planet 13 is paying $1.156 million for the cannabis inventory, and $3 million for the operating assets, licenses, equipment and tenant improvements which payment is comprised of $0.5 million in cash and $2.5 million of common shares in the capital of Planet 13, resulting in the issuance by the Company of 1,374,833 Consideration Shares based on a 10-day VWAP, all of which shares are being held in escrow until the Second Closing. The license transfer under the Asset Purchase Agreement is contingent on approval by the State of Nevada’s Cannabis Control Board, and upon receiving such approval the Consideration Shares will be released from escrow to WCDN.

Planet 13 Holdings Inc (OTCMKTS:PLNHF) promulgates itself as a cannabis company that cultivates, produces, and distributes medical and recreational cannabis in Nevada, the United States.

It also operates dispensaries that provide recreational cannabis, cannabis extracts, and infused products. In addition, the company sells its products online. It operates under the Medizin and Planet 13 brand names. The company is headquartered in Las Vegas, Nevada.

As a vertically integrated and established cannabis company in the Nevada market, Planet 13 Holdings, Inc. provides an array of cannabis products available through its licensed operations. Planet 13 Holdings, Inc. is focused on providing a dispensary experience and managing cultivation efficiencies through its technology. Planet 13 may be able to build on its position in the Nevada cannabis market as it seeks to expand its existing operations. In the Fall of 2018, the company was working to open a retail dispensary immediately adjacent to the Las Vegas strip.

The stock has been acting well over recent days, up something like 32% in that time.

Planet 13 Holdings Inc (OTCMKTS:PLNHF) managed to rope in revenues totaling $22.6M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 22.8%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($19.8M against $19.8M).

 

Sugarmade Inc (OTCMKTS:SGMD) is a cannabis player that operates now mostly through its controlling stake in BudCars, a leading California cannabis delivery company that operates on a traditional retail model with consistent 45-50% gross margins on cannabis inventory.

Sugarmade’s BudCars model has been feasting on increasing market share during the pandemic for obvious reasons: cannabis consumers can order their favorite products and have them delivered right to the door in touchless convenience. That dynamic has presented SGMD shareholders with a dramatic boom over recent months. Since Sugarmade took over control of BudCars in March, the outfit has posted 10% week-over-week sales growth basically at a minimum.

Sugarmade Inc (OTCMKTS:SGMD) just issued a mid-month performance update for the month of July, which is now on pace to set multiple new Company performance records for sales, gross profits, and total customer orders. As of July 14, the Company is now on pace to meet or exceed its target of $650,000 in total sales in July, with well over 5,000 individual customer orders likely this month, suggesting that sequential month-over-month topline growth will be at or above the Company’s target 30% level.

“Our BudCars Sacramento hub continues to demonstrate accelerating growth that suggests we still haven’t really found the ceiling here in terms of period-over-period upside potential,” commented Jimmy Chan, CEO of Sugarmade. “Ultimately, this is gratifying to see because we have taken a unique approach to retail cannabis product distribution.”

Sugarmade Inc (OTCMKTS:SGMD) has been posting major growth updates on a regular basis over the past couple months as its BudCars model takes apparent flight. The rate of sales growth expected from the company in 2020 has walked up a steep ladder, with the latest guidance suggesting we could see it north of $30 million in annualized sales by year-end.

 

Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

The company distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.

Trulieve Cannabis Corp (OTCMKTS:TCNNF), which has been breaking out to fresh multi-year highs in recent action, just announced the opening of its latest storefront. Opening on Saturday, July 18th, the Port St. Lucie location will be the Company’s 52nd dispensary in its home state of Florida and 54th nationwide.

According to the release, located near the center of Port St. Lucie, the dispensary supports Trulieve’s goal of expanding and ensuring direct, reliable patient access to medical cannabis throughout the state. It also joins the Company’s 51 other Florida dispensaries, including those in nearby Fort Pierce and Stuart.

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. Shares of the stock have powered higher over the past month, rallying roughly 15% in that time on strong overall action.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) generated sales of $129.2M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 22.8% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($143.5M against $104.7M).

 

Cresco Labs Inc (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products.

The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand.

In addition, it operators a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts.

The company was formerly known as Cresco Labs, LLC and changed its name to Cresco Labs Inc. in November 2018. Cresco Labs Inc. is headquartered in Chicago, Illinois.

Cresco Labs Inc (OTCMKTS:CRLBF) just announced the opening of its eighth Illinois dispensary in the city of South Beloit, which is located near Highway 75 and visible from Interstate 90 by the Illinois-Wisconsin border.

According to the release, Sunnyside South Beloit is where cannabis meets wellness. The store aims to educate today’s diverse users on the many positive benefits of cannabis and provides one of the widest ranges of cannabis brands. A more sophisticated and familiar shopping destination that combines high-end design from healthcare, retail and hospitality, Sunnyside South Beloit elevates the value dispensaries can add to a community with a bright, welcoming aesthetic and convenient shopping whether in-store or online.

And the stock has been acting well over recent days, up something like 10% in that time. Shares of the stock have powered higher over the past month, rallying roughly 12% in that time on strong overall action.

Cresco Labs Inc (OTCMKTS:CRLBF) generated sales of $89.3M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 63.4% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($101.6M against $201M, respectively).

 

This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.

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Business CBD Marijuana MMJ Stocks

Cannabis Investors Search for New Leadership (TCNNF, NUGS, GTBIF, MJNA, ACB, CGC, TLRY)

The new pot stock bull is underway, and investors are hard at work, searching for the next champ picks that will lead the way in the new trend. Last time around, we saw the likes of Aurora Cannabis Inc (NYSE:ACB), Canopy Growth Corp (NYSE:CGC), or Tilray Inc (NASDAQ:TLRY), each of which sported thousands of percentage points in investor gains over about 2 years into the 2018 highs.

Bull markets are fundamentally about expanding excitement ultimately rooted in a theory or vision about the long-term future of business in a sector. In this case, the long-term vision remains in place, complete with gawdy growth forecasts from the Street and plenty of major catalysts ahead. The bear we have seen, which has now come and gone, was about investors getting ahead of the game a bit too far, and about too many pretenders issuing shares into the mix.

However, the bear did its work. The weak-handed money has been expunged from the system, and the weak balance sheets and frauds have gone the way of the Dodo.

With that in mind, we take a closer look at a few of the more active names in the space: Trulieve Cannabis Corp (OTCMKTS:TCNNF), Cannabis Strategic Ventures (OTCMKTS:NUGS), Green Thumb Industries Inc (OTCMKTS:GTBIF), and Medical Marijuana Inc (OTCMKTS:MJNA).

 

Trulieve Cannabis Corp (OTCMKTS:TCNNF) recently announced the doors of a record 50th location within the State of Florida opened on Friday, June 26th.

According to the release, the Ocala location is Trulieve’s 52nd location in the United States, 50 of which are located in the Company’s home state of Florida. Near downtown Ocala, the dispensary supports the Company’s mission to expand and ensure safe, reliable patient access statewide. It also joins Trulieve’s 49 other dispensaries statewide, including in nearby Gainesville, Lady Lake, and Daytona Beach. At approximately 4,400 square feet and with 10 point-of-sale stations, the dispensary will be the Company’s first in Marion County.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) promulgates itself as a company that, through its subsidiary, Trulieve, Inc., engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 155 stock keeping units, including smokable flower, flower pods for vaporizing, concentrates, topicals, capsules, tinctures, and vape cartridges. As of May 22, 2020, the company operated through 50 dispensaries, which included 48 locations in Florida.

According to company materials, “Trulieve is a vertically integrated “seed to sale” company and is the first and largest fully licensed medical cannabis company in the State of Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve branded stores (dispensaries) throughout the State of Florida, as well as directly to patients via home delivery. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL.”

TCNNF hasn’t really done much of anything over the past week, with shares logging no net movement over that period. TCNNF shares have been relatively flat over the past month of action, with very little net movement during that period.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) managed to rope in revenues totaling $129.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 118.5%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($143.5M against $104.7M).

 

Cannabis Strategic Ventures (OTCMKTS:NUGS) just announced continued robust growth in total volume of cannabis sales and revenues during the month of June, which is now on pace to be a record-setting month for the company.

This announcement comes as Cannabis Strategic Ventures rides a streak of consecutive record months in terms of sales volume and monthly revenue growth. According to its release, the strong performance seen so far in June was aided by a single day (June 4) when NUGS booked $400,000 in sales – its largest ever single day of sales. Management notes that the Company booked a record $929K in sales in May (7% more than its April sales total, which was also a monthly sales record, itself). The company had already amassed nearly $900K in June sales with 30% of the month remaining.

Simon Yu, CEO of Cannabis Strategic Ventures, stated, “We continue to benefit from our decision in March to get more aggressive rather than retrench in response to the coronavirus crisis. The cannabis shortage we have seen in California since that time has afforded us a golden opportunity to sharply expand our distribution footprint and nurture a widening network of key distributor relationships. June is on pace to be our third consecutive record sales month. Given our strong positioning and expanding production capacity, we anticipate continued robust growth ahead.”

Cannabis Strategic Ventures (OTCMKTS:NUGS) is one of fastest growing stories in the cannabis space, with a strong presence in the California cannabis marketplace showing consistent growth on a sequential monthly and quarterly basis. Q2 2020 appears to be a breakout quarter for the company based on the data and communications so far established.

In addition, the company has recently successfully expanded its production capacity by as much as 2.5x. That expansion was necessary to keep up with demand as overall top line sales have increased rapidly during calendar Q2, with the monthly pace of sales this quarter on pace to average more than 800% above the average monthly pace seen in calendar Q1. The new farm will presumably balloon that capacity factor when it comes online for operations.

Cannabis Strategic Ventures (OTCMKTS:NUGS) pulled in sales of $1.4M in its last reported quarterly financials, representing top line growth of 91.4%. The company also has provided data from recent operations that suggests it is on pace to surpass $11M in sales in 2020, outperforming its guidance from December projecting $5M in 2020 sales.

 

Green Thumb Industries Inc (OTCMKTS:GTBIF) just announced it will open Rise Duncansville, its 47th retail location, on June 30. According to the release, profits from the first day of sales will be donated to Last Prisoner Project, a nonprofit coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry. Green Thumb also donated the first day of profits to the Last Prisoners Project when Rise Chambersburg opened in Pennsylvania earlier this month.

“We are grateful to create jobs throughout the state as we continue expanding our retail footprint in Pennsylvania during the COVID-19 crisis,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “The team is also honored to partner with the Last Prisoner Project on the important work of redressing the past and continuing harms of unjust laws and policies so that victimless cannabis prisoners can walk free.”

Green Thumb Industries Inc (OTCMKTS:GTBIF) as a producer and distributor of cannabis products including flower, concentrates for dabbing and vaporizing, edibles, and topicals. The company markets its products through third party retailers. It also owns and operates a chain of 50 retail stores under the RISE dispensaries name.

The company is a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve.

GTBIF hasn’t really done much of anything over the past week, with shares logging no net movement over that period. GTBIF shares have been relatively flat over the past month of action, with very little net movement during that period.

Green Thumb Industries Inc (OTCMKTS:GTBIF) managed to rope in revenues totaling $138M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 271.9%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($101.8M against $182.5M, respectively).

 

Medical Marijuana Inc (OTCMKTS:MJNA) just announced that Raul Elizalde, co-CEO of its subsidiary HempMeds, has been invited to speak on Endeavor’s expert digital panel, “Cannabis in Mexico: The Debate and Opportunities for an Emerging Industry,” which was held on June 24.

“Raul pioneered the cannabis industry in Mexico and played an integral role in helping us find a pathway to legally selling CBD in several Latin American countries,” said Dr. Stuart Titus, CEO of Medical Marijuana, Inc. “We stand behind him in his legislative advocacy efforts and believe that he will add great value to this event.”

Medical Marijuana Inc (OTCMKTS:MJNA) bills itself as an investment holding company that operates in the medical marijuana and industrial hemp markets.

Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries. The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry.

It engages in the research and development of cannabinoid-based pharmaceuticals; and marketing and distribution of cannabidiol hemp oil-based products. In addition, the company provides management support and services to cooperatives, collectives, health and wellness facilities, and medical clinics; and consulting and securities services to businesses and individuals in the legal cannabis industry.

Further, it focuses on the treatment of pain and other medical disorders with the application of chewing gum-based cannabis/cannabinoid medical products.

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week. MJNA shares have been relatively flat over the past month of action, with very little net movement during that period.

Medical Marijuana Inc (OTCMKTS:MJNA) managed to rope in revenues totaling $16.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a declining rate of top line growth of -4.2%, as compared to year-ago data in comparable terms.

Categories
Business

Capital Flowing Back into Cannabis Stocks (GWPH, CGC, MCTC, TCNNF)

Cannabis investors have been burnt by oversupply and a proliferation of pretenders over the past two years. But the sun is finally starting to come back out from behind those clouds over the past month, with many survivors starting to show signs of thriving in the post-purge world that now defines the space.

The pandemic has both helped and hurt. But the process of naturally thinning the herd has been a powerful factor in driving fresh momentum – the wheat has finally been separated from the chaff.

The remaining “winners” now can perhaps look forward to reaping the rewards of the powerful structural growth trend analysts still anticipate defining the future of this space over coming years as the legalization and mainstreaming trends remain in place. That offers up a very strong investment thesis for new money looking for high-growth opportunities in a washed out sector.

With that in mind, we present a few of the most interesting names for consideration: GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH), Canopy Growth Corp (NYSE:CGC), MCTC Holdings Inc (OTCMKTS:MCTC) aka Cannabis Global Inc. (OTCMKTS:MCTC), and Trulieve Cannabis Corp (OTCMKTS:TCNNF).

 

 

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) just hit the wires with Q1 results after the market closed on Monday. Sales came in at $120.6 million, more than triple the numbers dropped in the year-ago quarter, blowing out analyst estimates (consensus $109.4 million).

The big driver was Epidiolex, an FDA approved CBD treatment for refractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms.

Net product sales for the drug totaled $116.1 million in Q1, with $106.1 million of this amount generated in the U.S.

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) bills itself as a biopharmaceutical company that engages in discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant.

The company operates through three segments: Commercial, Sativex Research and Development, and Pipeline Research and Development. Its lead product is Epidiolex, an FDA approved treatment of refractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms.

The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. In addition, it develops various product candidates, which are in Phase I and II clinical development for the treatment of glioma, neonatal hypoxic-ischemic encephalopathy, adult epilepsy, and schizophrenia.

The context for this announcement is a strong bid, with shares acting well over the past five days. Shares have powered higher over the past month, rallying roughly 11% in that time on strong overall action.

GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) has been acting well over the past five days. Shares have powered higher over the past month, rallying roughly 11% in that time on strong overall action.

 

Canopy Growth Corp (NYSE:CGC) is one of the biggest and most geographically diversified players in the cannabis space, with operations in 12 countries across five continents. The company engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps.

It’s perhaps the biggest overall name in the space when it comes to a combination of producing and investing in the space, so it has to be near the top of any measure as far as benefitting from a shift whereby full-scale legalization in the US market is concerned.

According to its own materials, the company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands.

One of its most important divestitures and strategic interests is Canopy Rivers Inc., a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. The company works collaboratively with Canopy Growth to identify strategic counterparties seeking financial and/or operating support.

CGC has had a rough past week of trading action, with shares sinking something like -12% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -8%.

Canopy Growth Corp (NYSE:CGC) generated sales of $123.8M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 61.5% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2.3B against $418.3M).

 

MCTC Holdings Inc (OTCMKTS:MCTC), now doing business as Cannabis Global, Inc. (MCTC), is interesting as a more speculative play. The company is one of the very few plays in the cannabis space that is building vertically from a base driven by genuine IP. MCTC has a number of strong patents in process at the USPTO and looks set to become a leading play on the red hot edibles infusion theme.

That’s interesting enough. But the story just got more interesting because the company’s verticalization theme is continuing to build and now includes a serious play in the explosive California cannabis delivery marketplace with its announcement this morning of an LOI with Whisper Weed Delivery of Los Angeles, a leading California cannabis delivery services provider, wherein Cannabis Global will provide management services in exchange for fees equivalent to 51% of the profits derived from Whisper Weed’s cannabis delivery services throughout the entire greater Los Angeles regional marketplace.

“We continue to verticalize operations from an IP-driven base, stacking a core technology and R&D edge under growing manufacturing operations, and now we have added an essential piece of that puzzle: an established leadership position in cannabis home delivery in the largest municipal cannabis market in the world,” commented, Arman Tabatabaei, CEO of Cannabis Global. “Whisper Weed is cash-flow positive, profitable, and growing rapidly in terms of volume and end-market footprint. Our aggressive growth strategy continues to move forward ahead of schedule. And this expansion into the rapidly growing California cannabis delivery space is an integral part of that plan.”

We would also note that the cannabis delivery space, itself, is a $10 billion industry already, and growing by leaps and bounds due to embedded structural factors as well as the COVID-19 pandemic, and its stay-at-home impact.

This news comes on the heels of a deal with BudCars, another juggernaut in the California cannabis delivery space.

In addition, MCTC Holdings Inc (OTCMKTS:MCTC) also just announced that it is starting to commercialize breakthrough research on THC-V, a “Varin” cannabinoid with the potential to work as a weight-loss supplement. The company has patents pending there as well, and may soon have a virtual monopoly on that market.

Keep this one on the radar.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) is one of the best performing stocks in the cannabis space over the past couple months, with shares more than doubling since mid-March on strong action. The stock is now trading well above its major moving averages and sits on gains over the past 18 months – that’s a rare trait for a pot stock these days.

The company engages in the cultivation, possession, distribution, and sale of medical cannabis in the United States.

It offers a suite of Trulieve branded products with approximately 125 SKUs, including nasal sprays, capsules, concentrates, syringes, and cannabis flower in tamper-proof containers for vaporizers, topical creams, tinctures, and vape cartridges.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) distributes its products to Trulieve branded stores (dispensaries) in Florida, as well as takes orders online and by phone for delivery. As of November 20, 2018, the company operated 21 dispensaries. Trulieve Cannabis Corp. is headquartered in Quincy, Florida.

The stock has been acting well over recent days, up something like 10% in that time.

Trulieve Cannabis Corp (OTCMKTS:TCNNF) managed to rope in revenues totaling $105.2M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 121.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($119.1M against $73.6M).

“This article is part of JournalTranscript.com Networks. Read the JournalTranscript.com Networks Disclaimer.”

 

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