Proponents of medical and recreational marijuana have joyfully heralded the spread of legalized medical and recreational cannabis in the United States and Canada. Now it’s time for niche players to join the party… and some of these may be the most profitable companies in the business.
Public companies invested in the development of products have seen massive increases in their stock value over the last year as the market has taken off.
Our research shows one company primed to take advantage of changing social attitudes and growing legal acceptance of cannabis: Weekend Unlimited Inc. (CSE: POT – OTC: WKULF). Numerous companies are developing cannabis-based products such as tintures, edibles, cosmetics, and CBD-based products, but Weekend is taking the unique tact of investing in lifestyle.
Currently, Weekend Unlimited Inc. (CSE: POT – OTC: WKULF) is growing aggressively and is uniquely positioned to take on a potential leadership role in its niche. It seeks to become a diversified company with leading brands across a number of highly-profitable segments of the emerging global cannabis business.
Changing Attitudes and Growing Legalization
The public perception of marijuana has changed dramatically over the years. Attitudes, driven by positive medical developments like treatment for with FDA approved cannabis drugs have really served to create a shift in mainstream acceptance and adoption.
Indeed, several high profile former politicians such as John Boehner, and former Canadian Prime Minister Brian Mulroney have recently joined the boards of cannabis companies, illustrating a confidence in the effectiveness of cannabis worthiness in the treatment of pain and as an opioid alternative.
By 2018, attitudes had changed so much that Canada became the second country in the world and the first G7 nation to legalize recreational marijuana. Prime Minister Justin Trudeau pledged that regulations would discourage underage users and marijuana-related crimes.
Experts predict that cannabis will become a $5 billion per year industry in Canada.2
The United States has been on a similar path. In 2012, voters in Colorado and Washington legalized recreational use of small quantities of marijuana. Today, medical marijuana is legal in 33 states and the District of Columbia. Recreational use is allowed in 10 states and the District of Columbia. Another 13 states have decriminalized marijuana. Experts predict that worldwide, the industry could be worth $200 billion by 2032.2
Not surprisingly, in December of 2018 President Donald Trump signed a significant bill that legalized the domestic production of hemp in the U.S. The industry sees this as yet another positive step in the forward momentum of a market that appears destined to mature into full blown legalization.
Over the past decade, surveys show that teens have become increasingly unlikely to view using marijuana as a risky behavior3 that inevitably leads to drug addiction and criminal activity. So the use of edibles and CBD-based by products has a growing audience with wide acceptance.
Demand Increasing Faster Than Supply
In the weeks immediately after recreational marijuana was legalized in Canada, long lines and supply shortages were the norm. Equity Insider reported on the first day of legal use that Canadian suppliers recorded 53,000 transactions.4 Supplies dried up, creating a crisis for patients who were accustomed to using marijuana for relief from medical conditions.
Weekend Unlimited is tapping into the trends
As reported on its own website and in the CannabisFN Media (CFN Media), Weekend Unlimited Inc. (CSE: POT – OTC: WKULF) is rapidly growing and merging with high-quality suppliers to meet the growing demand.
Weekend Unlimited announced on Nov. 1, 2018 that it intends to expand into Jamaica.5 It plans to acquire Jamaican-based R&D Pharma, one of three approved Tier-3 licensed cannabis cultivators in the country. R&D is accelerating the plan by building a ganja café and therapeutic spa. It also expects to showcase its products to visitors from around the world.
Currently, Weekend Unlimited’s products and brands include:
- Orchard Heights Growers in central Washington offers premium quality, indoor cultivation and processing. Here, workers rely on advanced farming practices to delivery consistent quality at a competitive price.6
- British Columbia-based Northern Light Organics is set to become the first CBD-focused hemp and cannabis farm in Canada. Its facility includes vegetative, clone, and genetics rooms as well as an extraction facility for CBD hemp oils and concentrates.6
- Jerome Baker Designs is a three-time High Times Cannabis Cup winner. It built Bongzilla, the world’s largest bong. The bong stands 23 feet tall, requires a blowtorch to light and an elevator to use. Through this creative company, Weekend Unlimited hopes to launch a line of CBD products.5
- Verve! Beverage Company, which features the CHAMP and Verve! products. Billed as an “insanely healthy energy” drink, these products rank among the highest-growth category of the beverage industry. Verve! has already sold $235 million in direct-to-consumer sales. The beverage is to be rolled out for retail distribution.7
- Canna Candys & Canna Medibles which are medicated hard candies in 31 flavors including Classic, Berry, Fruity, Tropical, and Fiesta flavors. The Weekend Unlimited website says the candy brand has existed for 7 years. It is distributed through 380 retail stores in Southern California, owning 35% of the hard candy market share in that region.7
CFN Media Group also praises Weekend Unlimited Inc. (CSE: POT – OTC: WKULF) for its best-of-class operations. It asserts that the firm is uniquely sorted to deploy capital and expertise through technology, infrastructure, and centralized systems.6
Weekend Unlimited promotes its reputation as a cutting-edge and fun company through events. On the website at weekendunlimited.com, the company promotes diverse events from concerts to conferences.
Recently they announced that President and CEO Paul Chu is presenting at the Benzinga Cannabis Capital Conference. The conference is billed as the premier gathering of cannabis entrepreneurs and investors in North America. “No other conference offers the level of access and seamlessness of interaction between entrepreneurs building future billion-dollar cannabis enterprises and the investors whose capital will make that happen,” the website enthusiastically proclaims.
The website also showcases the company’s event division, Weekend Unlimited LIVE, celebrating news that New York Governor Cuomo would push to legalize recreational marijuana. The star-studded event featured a DJ set by Snoop Dogg. In attendance were former NFL player and cannabis advocate Jack Brewer, former NFL safety Sergio Brown, Real Housewives Ramona Singer and Sonja Morgan, Mob wife Ramona Rizzo, Miss USA, Miss New York Genesis Camilo, Terrence J, and DJ Whoo Kid.
As an event and lifestyle company, Weekend Unlimited LIVE is planning more events, concerts, music festivals, exclusive parties, and celebrity appearances to raise its profile.
Feature Company: For Comparison
Weekend Unlimited aggregates and scales small to medium brands, primarily in the categories of flower, extracts, and edibles. Aside from recent acquisitions Canna Candys & Canna Medibles and Verve Beverage Company, the company operates Orchard Heights Growers, it has launched Weekend Unlimited Live, a live-event concept featuring concerts, music festivals, exclusive parties, destination travel, sports, charity and other special branded events to raise the profile of its product brands.
4 Comparable Stocks Leading the Cannabis Space
The following four companies focus primarily on other companies that have done well in the cannabis and medical marijuana spaces in general. They represent the real world potential for growth in this emerging market.
Canopy is the largest marijuana producer on the planet. It was the first federally regulated, publicly traded cannabis producer in North America. It is the first billion-dollar cannabis company.
Cronos Group is a geographically diversified and vertically integrated cannabis company with one of the largest and most scalable operating platforms in the global medical cannabis industry.
One of Canada’s lowest-cost producers, it produces, supplies, and sells medical cannabis. It is committed to providing pharma-grade medical cannabis. It was the first public licensed producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.
Aurora Cannabis Inc. produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, and retail distribution. It started trading on the NYSE in October.
The Future Promise of Cannabis Based Brands
Forbes magazine predicts that legalized marijuana is a boon to the economy. The March 13, 2018 article cites a study by the Colorado State University-Pueblo’s Institute of Cannabis Research showing that a taxed and regulated industry contributed more than $58 million to Pueblo County, Colo. 8
There are challenges, of course. Forbes magazine reports that there was an increase in illegal marijuana growing operations. Law enforcement officers also had difficulty keeping up with changing regulations.
But other adverse impacts were not realized. For example, there was not an increase in homelessness or youth use of cannabis.
In fact, Forbes also reports, that the county funded $420,000 in scholarships for 210 students through a local marijuana excise tax. The county expects the scholarship dollars to increase in the coming years.
Some experts told Forbes they believe legalizing marijuana on the federal level could result in an additional $105.6 billion by 2025, according to a report from the cannabis analytics firm New Frontier. If cannabis were fully legalized today, estimates say it could create up to 1 million jobs by 2025.
With this type of economic impact, it’s no wonder investors are seriously considering adding marijuana companies such as Weekend Unlimited to their portfolios.
The Motley Fool has devoted significant resources to this investment category, but does suggest investors should consider some of the current risks in the marijuana industry:9
- Currently, marijuana is illegal at a federal level, meaning the U.S. Department of Justice could alter its stance on on cannabis businesses at any time – though that seems unlikely at this point.
- Because of the federal prohibition, it is difficult for cannabis companies to work with banks and financial institutions. However that is changing – as witnessed by Trump’s signing of a bill to legalize Hemp growth in December 2018.
- Supply and demand imbalances seem likely. Currently, demand is high. If suppliers catch up and outstrip demand, prices will likely normalize. When the price of the product falls, grower’s stocks will feel the maturation. However, many experts believe global demand is going to grow significantly, keeping demand high.
In general, leading pundits like the Street.com and Motley Fool recommend treating marijuana stocks like any other: research the management team and examine the company growth strategies along with their competitive position.
Based on those factors, as well as rapidly changing laws in the United States and Canada, Weekend Unlimited Inc. (CSE: POT – OTC: WKULF) is in a unique position to advance its strong product offerings. We place them high on the list (no pun intended) of niche players advancing meaningful brands with impressive profit potential.
USA News Group
Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Weekend Unlimited, Inc. advertising and digital media from the company directly. There may be 3rd parties who may have shares of Weekend Unlimited, Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Weekend Unlimited, Inc. which were purchased as a part of a private placement. MIQ will not buy or sell shares of Weekend
unlimited, Inc. for a minimum of 72 hours commencing February 4, 2019, but reserve the right to buy and sell, and will buy and sell shares of Weekend Unlimited, Inc. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.