By Michael Berger
The legal cannabis industry represents a great and profitable opportunity. Unfortunately, the lack of information available has made it difficult for investors to know what is of value and should be avoided.
Today, we have highlighted three Canadian-based publicly traded cannabis companies that also trade on the United States stock market. These companies are levered to a massive global growth trend and are positioned to capitalize over the coming years.
An Emerging Global Cannabis Leader
Aurora Cannabis Inc. (ACB.V) (ACBFF) has been making waves in the global marijuana industry and is an industry leader.
From Australia to Germany, this Canadian licensed producer has significantly increased its market share and is levered to new legal cannabis markets across the globe. On top of this, Aurora formed a strategic partnership and acquired a 19.9% position in Hempco Food and Fiber (HEMP.V: TSX Venture) – with an option to acquire 50.1%.
In June, Cann Group Limited (ASX: CAN) became the first Australian company to be licensed by the Office of Drug Control for commercial medical cannabis cultivation and production. Aurora acquired 19.9% of Cann Group and became the cornerstone investor ahead of its initial public offering (IPO). Cann Group expects to harvest its initial crop in early August.
In May, Aurora acquired Pedanios GmbH which has been importing, exporting, and distributing medical cannabis into and within the EU since December 2015. Earlier this month, Pedanios passed the first stage of the tender application process to become a licensed medical cannabis producer in Germany.
Aurora has one of the strongest balance sheets when compared to its peers and is levered to several emerging growth trends throughout the world. Aurora has more than 16,000 registered patients in Canada. We are favorable on the company’s leverage to other legal markets and see it as a company to watch.
Learn About the World’s Largest Licensed Medical Cannabis Producer
Canopy Growth (WEED.TO) (TWMJF) is by far the largest and most diverse licensed Canadian medical marijuana producer. The company is comprised of several wholly owned subsidiaries and has increased its reach by making investments and acquisitions of companies all over the globe.
Canopy Growth was the first publicly traded licensed Canadian medical marijuana producer and is levered to the emerging medical marijuana market in Germany. The company has a greater breadth of multi-site management than any other cannabis firm in the world. In addition to previously announced work in Brazil through its strategic partnership with Entourage Phytolab and its stake in Australia-based AusCann Group, Canopy has also entered the Chilean cannabis market.
The company has a very strong balance sheet and has penetrated new international markets. We expect to see Canopy further expand its presence across the globe and see continued growth for years to come.
With more than 58,000 Canadian customers on its online store, Canopy possesses some of the most attractive growth prospects and we expect the company to continue to be a leader for years to come.
A Cannabis and Technology Opportunity
Reliq Health Technologies (RHT: TSX Venture) (RHQTF: OTC) is a healthcare technology company that specializes in developing innovative, secure mobile software solutions for the multi-billion-dollar community healthcare market.
Reliq has several high profile pilots in progress with leading hospitals and healthcare networks in North America and Europe including Sacred Heart Health System in FL, the Feldman Institute in LA and the National Health Service England in the UK. The company also has a partnership with a licensed Canadian cannabis producer, Invictus MD Strategies (IMH.V) (IVITF: OTC) to capture high value data on strain, dose, mode of administration, symptom relief and side effects from medical marijuana users.
Reliq is generating revenue. The company has contracts in place with a 12,000 patient home care agency and a 36,000 patient Accountable Care Organization in Texas that are expected to generate over $10 million in recurring annual revenue in 2018.
Reliq Health is led by a strong management team with a proven track record of success before joining the company. Reliq’s CEO Lisa Crossley is an experienced healthcare IT executive and had previously served as the CEO of VitalHub Corp. and Natrix Separations.
Reliq Health has a very small market capitalization and the potential monthly revenue from its pilot programs is incrementally larger than its market cap. For this reason, we believe Reliq is significantly undervalued and underappreciated by Wall Street.