While investors and even the beverage industry look at some of North America’s largest marijuana stocks, some more low-key players are making waves in the cannabis market today. Following Canada’s historic measure legalizing cannabis, and the continuing movement in the international markets, investors are looking for the perfect pot stock pick to buoy their portfolios for the long term.
A number of companies are making moves under the radar. Here are the top three marijuana stocks you’re currently ignoring:
Auxly Cannabis Group Inc.
Formerly Cannabis Wheaton Income Corp., Auxly Cannabis Group Inc. (CBW.V) (NASDAQOTH:CBWTF) announced a definitive agreement earlier this year to provide Sundial Growers Inc. with millions non-dilutive debt financing. It is just one example of an under-the-radar company that provides capital to other growers in the sector, paying a below-market rate for product. Wheaton then turns around and sells for a hefty profit.
They usually see a return rate of 60 percent or better on most of their investments. With a handful of similar deals, Wheaton is a diversified pot stock at which investors should take a second look. Their holdings are varied both geographically throughout Canada, and numerically, ranging in a variety of different sizes.
Their model puts much stock in their partners, forcing them to front a ton of capital. However, as a long-term pot stock play, Wheaton is a strong bet for cannabis investors looking to grow their market share.
A low-key, small-cap cannabis stock with a market cap of around $170 million, last year WeedMD Inc. (CVE:WMD) closed a $15 million financing, followed by an additional $30 million. With that cash in hand, the company announced they would be leasing 217,000 square feet of existing greenhouse space in conjunction with a partnership with Perfect Pick Farms Ltd. to jump start capacity to 20,000 kgs per year. An option to retrofit additional space could bring that number up to 50,000 kg.
This small-cap pot stock shows huge growth potential for investors. A federally-licensed producer and distributor of medical cannabis and oils under the Access to Cannabis for Medical Purposes Regulations (ACMPR), WeedMD uniquely focuses on the senior market and assisted living homes, making them one of the smartest small cap weed stocks on the market today. Their recently announced commencement of cannabis cultivation at their greenhouse facility is sure to keep things interesting.
Newstrike Resources Ltd.
Newstrike Resources Ltd. (TSX-V:HIP) has focused its priorities on branding and strengthened itself as a company these past few months. Earlier this year, Health Canada’s Office of Medical Cannabis finished reviewing the license application of UP Cannabis Inc., Newstrike’s wholly-owned subsidiary, for the first phase of Niagara Facility. Moreover, UP Cannabis is set to make waves in the consumer branding sector of the cannabis industry, making this weed stock a real undervalued, low-key pick.
Even in a volatile market, Newstrike has managed to turn around their fortunes, keeping their share prices stable where others have fallen. Now that cannabis has gone legal in Canada, things can only go up for the company. A recent $50 million bought deal financing should keep them going for a long time coming.