The marijuana industry is growing like no other North America. ArcvView which tracks the sales is suggesting that legal weed could grow by 26% on an annual basis between 2016 and 2021. That puts the business at nearly $22 billion in annual sales. Even with regulatory restrictions, there’s presumably a lot of money to made, which is why investors have piled into marijuana stocks and pushed their valuations substantially higher.
For those looking to catch the wave of cannabis stocks that are off their yearly highs, timing can be a big factor. Getting in on these now at or below their low points can make a big difference. Be sure to have a look at the fundamentals that these companies have in place, since that’s what will drive their eventual value.
Below are three cannabis business stocks that have been struggling and could be steals at their current prices.
MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF) has already taken significant steps toward its goal of becoming a major player in the global cannabis cultivation space. including the building of two large-scale production facilities – one in Weedon and the other in Laval, both in the province of Quebec, Canada. Upon completion of these two, the total amount of greenhouse growing space for MYM Nutraceuticals is expected to exceed 1.5 million square feet.
The company also has other significant interest including a new agreement with Elite Ventures Group to grow 120 acres of CBD-rich hemp in Nevada, USA. MYM will fund Elite with $500,000 USD in exchange for the rights to 50% of CBD rich hemp grown on a 120-acre parcel of land in Nevada. The estimated production of hemp from the MYM parcel of land is 120,000 pounds per harvest with a CBD level of 10%-19%.
MYM is also on the ground in Australia, with outdoor cultivation of 50 hectares of medical cannabis in Henty, New South Wales and a planned 350 hectares being developed under a partnership with CPRSX Holdings and in Columbia with Colombia Organica which currently holds 3 licenses which include: production of cannabis derivatives, cultivation of psychoactive cannabis, and cultivation of non-psychoactive cannabis. All licenses include the capacity to export.
CROP Infrastructure Corp. (CSE: CROP) (OTC: CRXPF) crop is what is referred to in the business as an MSO or Multi State Operator. The company straddles multiple states, and is developing the only major outdoor farm in Nevada for the purpose of extraction. CROP Infrastructure Corp. should be capable of growing over 1.8 million square feet of space, while also operating a greenhouse to address the flower market.
In California CROP is developing its Humboldt Farms operation flowering 10,000 square feet of canopy for a late stage harvest and is working on the permitting for its 2019 expansion, including a proposed 30,000 square foot automated greenhouse facility. It also has worked its way into the retail California cannabis retail space through the acquisition of its Emerald Heights retail chain, with locations in San Bernardino and West Hollywood. In Washington State where cannabis consumer sales topped $2.8 billion in 2018, CROP has two greenhouse projects in Washington State
CROP has also signed a toll processing agreement with a California manufacturing company to produce oils, crumbles, and distillates for sale in the California market and is expanding internationally with a joint venture with XHemplar S.R.L., in which CROP co-owns an 87,120 square foot CBD greenhouse facility in Italy.
Redfund Capital Corp. (CSE: LOAN) ( OTC: PNNRF) provides an alternative source of capital to bridge finance and help cannabis, hemp, and CBD-focused companies build their valuation, grow their companies without prematurely diluting their equity.
In Canada, Redfund is working with Mary’s Wellness of Ontario—a cannabis-infused hot beverages line founded in 2016. Mary’s current product line is 100% clean and organic, focused on medicinal cannabis and has a total of 20 varieties of convenient on-the-go brews with 12 packets in each box containing 60mg THC and 6mg CBD per serving.
In South America, Redfund Capital has an agreement with Biominerals Pharma S.A.S. of Colombia. Biominerales began working in medicinal cannabis since 2015. Based out of Bogota, the company currently partners with 180 experienced cultivators, and has multiple grow operations located in close proximity to Cali, Colombia, which feature in-door and outdoor operations. Biominerales is positioning itself to be a global player in providing Hemp Biomass, CBD Oil with and without THC and Full Spectrum CBD Oil. Biominerales also hosts a 60-acre beta grow of Hemp to produce CBD with low THC in Colorado.
Each Redfund loan is a signed 2-year term convertible secured promissory note. with an average annual interest rate of 14%, of which Redfund has funded in tranches. Redfund’s recent client is the Cannabis Mercantile Exchange (Cannamerx) – one of the first cannabis and hemp auction platforms to go live. The intention is to help Cannamerx finance their business model and build their global footprint of clientele.
There are plenty of other cannabis business stocks with significant upside and global growth. For more about the cannabis market and trends affecting the business see https://usanewsgroup.com/2017/12/04/like-it-or-not-the-cannabis-sector-is-unstoppable-and-its-just-getting-bigger/.