Investors are increasingly paying attention to the cannabis industry as its rapid expansion plays out before their eyes. The past twelve months have seen a continued shift in public opinion toward marijuana and a doubling or tripling of marijuana stocks values in conjunction with soaring legal marijuana sales.
Federal government notwithstanding, larger numbers of investors are turning to marijuana stocks for their apparent sustainable growth.
Among Americans, four national polls have reported a record number of respondents who favor full legalization of marijuana. The bigger battle still lies with the federal government, which has not only refused to budge on its longstanding Schedule I classification of the drug, but, has dug its heels in with more fervor under the current administration. Even so, various sources have projected legal marijuana sales in North America to grow 25% to 35% each year until 2021.
(For more information on these national polls, read Still On the Fence About Investing in Cannabis? Check out This Marijuana Stocks Company.)
As the marijuana industry matures, new marijuana stocks are also coming out of the woodwork.
A search for marijuana-related companies now returns a list of multiple dozens of potential marijuana stocks to invest in. On the one hand, this indicates that riveting stock options may be getting lost in the crowd, flying under the radars of marijuana stocks investors. But, the surplus also indicates that not all weed stocks are worthy of investment. Many, in fact, are bleeding out financially, their long-term survival uncertain.
Among the many marijuana stocks options, however, are a handful of intriguing unknowns that bear qualities investors may find attractive as they continue to mature.
Take a look at two of unknown marijuana stocks whose progress may be worth following.
Namaste Technologies is one company with potential for those researching marijuana stocks to invest in.
Most people would not think a company named Namaste Technologies (NASDAQOTH:NXTTF) would have any relation to the cannabis industry. Investors may be surprised to know that this company, whose base is in Toronto, actually has three entry points in the burgeoning Canadian cannabis market.
One entry point is through smoking hardware product sales, including vaporizers. The company sells these products in 20 countries and across 32 e-commerce websites. Sales have undoubtedly been helped along by the widening number of countries opening to sales of legal medical marijuana to treat certain conditions, increasing opportunities for importation of medical marijuana and/or its hardware for consumption.
The expansion of the European market for marijuana stocks has been a key player in Namaste’s growth, whereas the U.S. market has not.
To avoid potential legal conflicts, Namaste decided last year to sell all assets associated with the U.S. market.
Namaste’s acquisition of CannaMart last April, a MMJ distribution company, purchased for CA$3.55 million also plants its marijuana stocks on this short list.
This move was strategic on two levels: One, it offers Namaste access to Canada’s growing population of medical patients. Secondly, it serves as a central platform from which the company can market and sell its smoking hardware and vaporizers.
The company merged these two operations in the beginning of this year with their launch of Namaste MD, offering medical marijuana patients a one-stop online shop for their cannabis or hardware needs.
Namaste established several significant supply or hardware deals with major marijuana stocks industry players.
Most notably, Namaste is the exclusive vaporizer supplier to Aurora Cannabis (NASDAQOTH:ACBFF), whose market cap makes it the second-largest marijuana stock. But, Namaste also signed a deal in January with The Supreme Cannabis Company that will allow it to receive 1,000 kg of marijuana to sell among its CannaMart customers.
Between these three advantage points, a recent bought-deal offering allowing the company to lock up over $31 million in gross proceeds, and concerns of several near-term financing situations shaken off in the process, Namaste is beginning to attract marijuana stocks investor attention.
The second lesser-known company with great potential for marijuana stocks investors is Emerald Health Therapeutics.
Emerald Health Therapeutics (NASDAQOTH:EMHTF) is another less known marijuana stocks option that investors might find worthy of attention. Also based in Canada, this marijuana grower has hopes of profiting from recreational sales once the legalization bill is passed through parliament. The entire industry looks to gain at least $5 billion in annual sales from this legislation.
In a sea of bigger growers who deliver the most goods – Aurora Cannabis, for example, with 2019 projections of 240,000 to 270,000 kg of dried marijuana – Emerald Health Therapeutics holds its own with offerings of the most vigorous expansion capacity potential. When everything is accounted for, the company could boast growing capacity up to 5.8 million square feet.
Emerald Health is retrofitting an existing tomato growing facility through a 50-50 partnership with marijuana stocks company Village Farms International (NASDAQOTH:VFFIF) – known as Pure Sunfarms.
This partnership which will give Emerald Health 1.1 million square feet of growing capacity.
The pair of companies has optioned another 3.7 million square feet of growing space in British Columbia in an ongoing effort to expand their operations. The total square footage from this partnership comes to 4.8 million.
What remains are 1 million square feet of growing capacity, coming from Emerald Health’s construction of its own facility in British Columbia, where the company will be headquartered. The site, slated for completion by the end of 2018, spans 32 acres and more than 500,000 square feet of capacity. It should be noted that a portion of this facility will be dedicated to extract and cannabis oil production, both of which have considerably higher price points and higher margins compared to dried cannabis.
The marijuana stocks company has further plans for expansion.
A recent announcement came out of Emerald Health’s joint venture with DMG Blockchain Solutions, soon to be renamed CannaChain Technologies. The purpose of the joint venture is to offer the cannabis industry blockchain solutions. Blockchain could tighten up the supply chains in the industry, making them more efficient and keeping businesses on track with paying their full portion of federal, state and/or local taxes.
Either way, the futures of both Namaste Technologies and Emerald Health Therapeutics are attractive enough to turn the heads of marijuana stocks investors.
(For more information on Emerald Health Therapeutics, read What Delay? These Marijuana Stocks May Benefit.)