The newest companies looking to cash in on cannabis
The modern cannabis industry is an exciting space to be in right now, walking the thin line of legalization. Companies who never touched the stuff now want a piece of the special brownie other pot stocks have been enjoying since 2016. These are the latest stocks to invest their money in cannabis.
Youngevity enters the billion-dollar cannabis industry
Youngevity (NASDAQ:YGYI) debuted into cannabis with a new product launch. Three brand new lifestyle products in the company’s new HempFX line combine an exclusive proprietary blend of hemp-based cannabinoids with other terpenes as well as botanicals, herbs, and minerals. Each product addresses a different therapeutic benefit of cannabis to fit in with the company’s well-established wellness brand.
Youngevity built a brand of health and wellness products for over twenty years. The variety of their brand is quite broad, including products like mineral-based makeup, organic coffee, and scrapbooking materials, just to name a few. Cannabis doesn’t seem like a likely fit at first, but Youngevity CEO Steve Wallach explained his approach in the company’s press release.
“Hemp-derived cannabidiol aligns with what we do very well,” Wallach says. “We’ve taken what we know about essential nutrients, along with decades of knowledge specializing in natural, plant-based nutrition and their most beneficial nutrients and put that knowledge to work to develop high-end cannabidiol products.”
As the reputation for cannabis changes, so will the face of those who sell it. Youngevity’s focus is one of wellness, and HempFX is the company’s first cannabis-based line of products. Selling cannabis to a health-conscious consumer base opens marijuana up to a new and ever-evolving market. What was once seen as a drug for burnouts and rap stars is now sought out as a sleep aid and immune booster. For investors, it would be wise to add a pot stock that dapples in more than just marijuana. Because, until marijuana is legalized in more places, the black market reputation still hangs heavy in the air. Investing in a more health-conscious approach could protect investors from any bureaucratic backlash.
Lead Ventures and another reverse takeover in cannabis
Local Delaware cannabis operator PalliaTech first announced the reverse takeover of Lead Ventures Inc. (CSE:LEAD) earlier this summer. Once complete, PalliaTech’s shareholders hold complete control of Lead Ventures. This includes powers to appoint new board members, distribute shares, and rename the company.
PalliaTech officially changed the name of the company to Curaleaf last month and had since hit the ground running. The new cannabis company announced the released the first line of strain-specific cannabis vape concentrates in New Jersey last week.
In Canada, the CSE lists Lead Ventures as having halted their activity on the exchange “pending fundamental change.” What was once a copper mining company is now evolving into a wholly new cannabis brand. In July, Lead Ventures and PalliaTech officially entered the transaction agreement to the tune of $2.16 million.
To the billion dollar cannabis industry, a few million dollars may seem like chump change. But don’t judge the deal too quickly. This move was only the beginning. Shortly after the reverse takeover was finalized, Curaleaf applied for listing on the CSE. More than that, the company is seeking a valuation between $3 and $4 billion. Valuations this high are not unheard of in this industry. Either are reverse takeovers, for that matter. But the quickness with which the North American landscape is changing due to cannabis is one thing investors need to be aware of. Can it be trusted? Only time will tell. In a matter of weeks, we will all be feeling the first fast effects of recreational legalization. Is your portfolio ready?