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5 High Production Capacity Marijuana Stocks to Know About

420 FILE

420 FILE--With the legalization of marijuana for medical and recreational use in many states, marijuana stock has seen tremendous growth. 

The marijuana industry is expected to reach over 60 billion worldwide; recreational market covers about 67% of the spending and the remaining 33% is taken up by medical marijuana. Moreover, marijuana is definitely the medical future of this world, as per west palm beach marijuana doctors.

The marijuana industry is a fairly new market so some of the best stocks are new companies that are yet to hit the market yet. Savvy investors will be looking to make money in both the hemp and marijuana market.

Given below are some of the best high production capacity marijuana stocks to help you stay ahead of the average investor.

  1. Aurora Cannabis Inc. (ACBFF)

Aurora Cannabis Inc. is a licensed Canadian marijuana producer and distributor with its headquarters in Vancouver and additional offices in Edmonton, Pointe-Claire, and Toronto.
The company’s quarterly operating results suggests that it has the capacity to produce 2,40,000-2,70,000 kilograms of dried cannabis in 2019. In 2016, the company began the construction of Aurora Sky, an 800,000-square-foot highly automated facility in Leduc County, Canada. This new Cannabis facility is designed to be more than 15 times bigger than Aurora’s current 55,200 with the ability to generate more than 100,000 kilograms of dried cannabis a year. In January 2018, Aurora entered into a  partnership with Alfred Pedersen & Son to construct a 1 million square foot facility known as Aurora Nordic. Upon completion, it will be capable of producing at least 120,000 kilograms of marijuana annually making it the continent’s largest producer of cannabis.

Generating such a large amount of cannabis each year by 2020, it could be one of the top dried cannabis producers in Canada. In other words, there are clear advantages to being a market-share leader.

  1. MedReleaf (MEDFF)

    MedReleaf is a Canadian cannabis manufacturer and distributor with headquarters in Markham, Canada. MedReleaf produces products for healthcare as well as for scientific research in Canada.

The company is continuously trying to expand and has agreed to a purchase of 164 acres in Ontario with existing greenhouse space of 1 million square feet. After this addition, the annual production capacity of MedReleaf can increase to 140,000 kilograms of marijuana per annum. MedReleaf is also entering into international partnerships with Australia, Brazil, and Germany to provide medical marijuana that could fuel more growth in the future.

However, stocks have been sluggish in 2018, the main reason being the legalization of recreational marijuana in Canada which was due to happen in July 2018 but has been postponed to late September or October.

On May 14th, 2018, Aurora Cannabis Inc and MedReleaf Corp agreed to merge in the biggest pot merger ever between two major cannabis producers, as Canada moves toward legalizing marijuana for recreational use. They are together expected to produce over 570,000 kilograms of cannabis annually through nine facilities in Canada and two in Denmark.

  1. Canopy Growth Corporation (CBWTF)

    Canopy Growth Corporation, formerly known as Tweed Marijuana Inc., is a Canadian based medical marijuana company. With its headquarters in Smiths Falls, Canada, it claims the top spot for the supply of medical marijuana in Canada.

Canopy Growth mostly specializes in oils from seeds like rainbow kush and cannabis extracts which are generally at a higher price as compared to dried cannabis. Higher price means higher margins as proven by its third-quarter report where 23% of its sales were derived from oils and extracts.

Canopy Growth received what amounted to a tremendous endorsement last October when Constellation Brands, an international producer, and marketer of beer, wine, and spirits,  bought a 9.9% stake in the company. This deal gives Canopy a fair advantage in the collaborative development of products like the cannabis-infused beer. At present, the company has seven facilities operating on 665,000 square feet. 3.7 million square feet with greenhouse facilities are under construction in British Columbia, after completion of which the company will be able to produce at least 300,000 kilograms of cannabis a year.

  1. Aphria (APHQF)

    Aphria is a Leamington-based marijuana producer founded in early 2014. It is listed on the Toronto Stock Exchange and has a market capitalization of $3 billion. It has received a license amendment from Health Canada to increase production. It’s flagship project, in its fourth stage, is a $100 million buildout which will provide over 1,000,000 square feet of production space. It is due for completion in January 2019 after which it’ll be capable of producing 100,000 kilograms of pot annually.

Aphria entered into an agreement with Double Diamond Farms in January 2018 that’ll result in 120,000 kilograms of additional marijuana supply per annum. Combined with their recent acquisition of Broken Coast Cannabis for $185 million, that will bring their production capacity to approximately 230,000 kg per year.

  1. Cannabis Wheaton Income Corporation (CBWTF)

    Cannabis Wheaton Income Corp, formerly Knightswood Financial Corp, was established in 1987 and has its headquarters in Vancouver, Canada. It trades on the  Canadian Securities Exchange as CBW and seeks to provide investor returns for their yields through capital appreciation in the Canadian cannabis industry.

Cannabis Wheaton isn’t a traditional grower but it operates as a royalty-based cannabis company to provide alternative financing sources for smaller licensed producers. It is the world’s first-ever cannabis streaming company with over 15 streaming agreements so far and a leader in the domestic market. With its rapid expansion, Cannabis Wheaton is on its way to selling 230,000 kilograms of dried cannabis in the year 2019.

It’s popularly known thatcannabis products like marijuana seeds, CBD oil, strains are increasing in the market. Pot stocks are undeniably expensive. Cannabis stocks are more volatile than average stock, and the legality of cannabis can pose as a hindrance. However, marijuana industry is in rally mode and it’s growth simply cannot be slowed in the coming years, which is why buying marijuana stocks can be extremely lucrative.

(Jessica K writes for ADFVN Financial News where this piece was first posted. Jessica is an occasional contributor to CityWatch.)