Pot stocks are unpredictable. It is the one thing on which investors can rely. But building a portfolio around marijuana stocks with an international reach is one strategy that may pay off in the end.
Germany is one of the most influential countries when it comes to the medical marijuana market. And even amid a legal tug-of-war, some American companies are finding a way to jump in on cannabis’ exponential growth.
These three marijuana stocks are winning the global market:
Sante Veritas Holdings
The Aurora/MedReleaf merger might have come with one of the biggest price tags in the industry, but brand new TILT Holdings is vying for the title of most comprehensive tech platform in cannabis.
TILT is the result of last Tuesday’s four-way merger between Canada’s Sante Veritas Holdings (CSE.SV), Colorado’s Baker Technologies, Boston-based Sea Hunter Therapeutics, and Briteside, a marijuana cultivation and delivery service in Oregon.
According to a statement, TILT will provide technology solutions for every facet of the cannabis industry. The goal is to empower cannabis companies with the ability to interact and communicate within a comprehensive retail system.
This merger should come as no surprise to those investors following Baker Technologies. Baker is among the eight cannabis companies that recently created the Future of Cannabis Retail, a movement aimed at creating a collaborative environment within the cannabis industry. Baker CEO Joel Milton sees this new merger as a way to provide more holistic solutions for industry problems.
"Baker's goal has always been to provide our clients a single platform that connects all of the tools and data they use on a daily basis. This merger is expected to be a win for us, the retail cannabis ecosystem and, most of all, the producers and dispensaries and their customers,” Milton added in the company’s statement on May 15.
TILT will also provide more lending opportunities within the legal cannabis sphere. Alex Coleman, Manager of Sea Hunter, added in the statement, “Due to the conflict between federal and state law, the industry still faces numerous challenges that are impeding the ability of businesses to effectively deliver products and services to a large and growing demand base…Our emphasis is to enable businesses the ability to successfully evolve and meet the needs of a rapidly growing market.”
TILT Holdings will be applying for an official listing on the Canadian Stock Exchange (CSE) in the coming weeks. Sante Veritas earned a listing on the CSE on May 11.
The American legal system may delay legalization on this side of the border, but Canadian pot stocks are not shy. Aphria Inc. (TSX.APH) (USOTC.APHQF) is seizing their American opportunity. The cannabis giant recently inked a deal with American alcohol distributor Southern Glazer’s Wine & Spirits and their Canadian subsidiary Great North Distributors.
Great North Distributors will be Aphria’s exclusive cannabis distributor in Canada. This deal marks the first time a cannabis company is partnering with an alcohol distributor to help with their distribution of legal marijuana. Squabbles between Big Cannabis and Big Alcohol are not uncommon, but this could be a bridge toward ending that rivalry.
Aphria does not show signs of slowing up on their international moves any time soon, either. Earlier this year, Aphria merged with cannabis extractors Nuuvera Inc, and just yesterday, their German subsidiary Nuuvera Deutschland GmbH acquired a 25 percent holding in Berlin’s Schöneberg Hospital to the tune of EUR$1.2 million. International moves like these is a reason we rated Aphria as one of the top pot stocks for 2018.
Organigram Holdings Inc.
Health Canada recently approved Organigram Holdings Inc. (TSX.OGI) (OTCQB.OGRMF) to export cannabis down under legally. Australian medical enterprise Cannatrek Medical PTY will receive Organigram’s dried cannabis, giving the company access to operations in Melbourne and hopefully future access to Asian markets.
This is second in what could be a series of international expansions. Last week, Organigram announced their first international investment. The company acquired 25 percent of Alpha-Cannabis Germany; a pharmaceutical company focused on developing cannabis-based medicine. From there, the opportunities appear to be endless. “This is only the beginning,” Organigram CEO Greg Engel said in the company’s statement yesterday.
Legalizing marijuana seems to have the uncanny power of making the world a smaller place. It may be too soon to predict the kind of success this global camaraderie could bring the industry, but we will keep an eye on the pot stocks making international moves like these.
Photo Credit: Frankie Leon