Marijuana stocks have been on fire recently and many investors are wondering if the marijuana trade is back on.
While we are favorable on the recent rally, we are not going all in. Instead, we recently exited several positions that are up considerably in the last month and have raised cash for future opportunities.
From Canadian licensed producers to CBD product and extract firms, we have highlighted seven developments and stocks that every investor should be watching.
Isodiol: Creates New Division to Enhance Product Offerings
Isodiol International Inc. (ISOL.CN) (ISOLF) traded higher after it announced a new Phytoceutical Division that will focus on cannabinoids and terpenes derived from non-cannabis sources. The company plans to provide additional information on the commercialization strategy of this division in the coming weeks.
Although marijuana is typically associated with getting high, the plant is much more than that. Through the Phytoceutical division, Isodiol wants to change this association by developing CBD based products that are not derived from the cannabis plant.
Isodiol will utilize proprietary extraction methods to ensure that the cannabinoids and terpenes are not denatured during the extraction process and expects it to enhance its product line with a superior and differentiated product.
Maricann: Falls After Issuing Operational Update
Mother nature is not always kind and Maricann Group Inc. (MARI.CN) (MRCCF) is learning this the hard way. The licensed medical marijuana producer issued an operational update after a March storm caused sand and foreign materials to be blown into two of the five main flowering greenhouses.
In Canada, under ACMPR, all aspects of cultivation must be controlled and no outside matter is permitted to enter the greenhouse unless introduced intentionally and through an approved process. After failing to rectify the issue, Maricann decided to destroy all the plants in the two affected greenhouses which significantly reduced its available inventory.
Yesterday, Maricann also reported to have secured a second-site sales license for its Burlington location. With the granting of this new license, the company is shifting its client services, sales operations and research activities to Burlington.
Supreme: Selects Aurora as its Primary Retail Partner
If you can’t beat them, join them.
That is what Supreme Pharmaceuticals (FIRE.V) (SPRWF) did after announcing that its 7ACRES subsidiary completed its first sale of dried cannabis to Aurora Cannabis (ACB.TO).
Aurora will sell cannabis procured from 7ACRES to its patients with a producer’s mark specifying it as SunGrown by 7ACRES. The sale is (the first of multiple transactions between 7ACRES and Aurora) expected to be completed prior to September 30th.
Prior to completing the transaction, 7ACRES underwent a detailed quality inspection by Aurora including an on-site audit and multiple laboratory tests to ensure the cannabis procured met the Aurora Standard for quality and transparency.
We are favorable on Supreme’s choice and believe that Aurora will prove to be a great retail arm for the licensed medical marijuana producer. With over 19,000 registered patients, Aurora offers Supreme significant awareness and access to its rapidly growing patient base.
Namaste: CannMart Facility is in Health Canada’s Review Stage
Namaste Technologies Inc. (N.CN) (NXTTF) recorded mixed movements after Health Canada said that the application for the facility acquired with CannMart is in the review stage to become a sales only licensed producer of medical cannabis.
To help with this process, Namaste engaged David Hyde & Associates to provide security consulting for the facility and Eurofins Experchem Laboratories to consult for CannMart on regulatory compliance
Over the past four years, David Hyde & Associates has provided security consulting services to over 165 ACMPR license applicants across Canada, worked with 27 licensed producer sites and attended 22 pre-license inspections with Health Canada. Eurofins Experchem will provide regulatory consulting services for CannMart through its final stages of approval from Health Canada.
Cronos: Secures Supply Agreement for Germany’s Marijuana Market
Cronos Group (MJN.V) (PRMCF) traded lower after one of its wholly-owned licensed producers, Peace Naturals Project entered a supply agreement with Cannamedical Pharma GmbH, a German pharmaceutical and narcotics wholesaler that is federally licensed for narcotics import.
Although Cannamedical has been actively selling cannabis products throughout 2017, the agreement will help with the ongoing German medical cannabis shortage. Next month, Cannamedical expects Peace to export one of the single largest shipments of medical cannabis in the EU’s history.
As of September, Cannamedical is the fastest growing cannabis retailer in Europe with a network of 781 pharmacies. By the end of the year, the number of pharmacies in its network is expected to reach 2,500.
Terra Tech: Increasing its Market Share in Nevada
After Terra Tech Corp. (TRTC) reported earnings in early August, the shares have been trending lower and we have been monitoring this pullback.
Last week, the company signed a non-binding letter of intent to acquire 50% of NuLeaf Sparks Cultivation LLC and NuLeaf Reno Production LLC. The acquisition is expected to fast track Terra Tech’s cultivation and production facilities, allowing them to introduce their IVXX wholesale brand and capitalize on the high demand for cannabis products in Nevada. The proposed transaction is expected to close in the third quarter.
NuLeaf Sparks has a medical cannabis cultivation license and is in the process of constructing a 30,000 sq. ft. cultivation facility in Sparks, Nevada. NuLeaf Reno has a medical cannabis production license and is in the process of constructing a 15,000 sq. ft. production facility in Reno, Nevada. Both facilities are expected to be completed by the fourth quarter.
CannaRoyalty: Remains Under Pressure Despite Developments
Although CannaRoyalty Corp. (CRZ.CN) (CNNRF) has continued to execute on its initiatives, the shares have remained under pressure and have fallen by approximately 25% from its highs in late July.
Yesterday, CannaRoyalty remained under pressure after it announced that one of its investee companies, Alternative Medical Enterprises opened its inaugural MüV by AltMed dispensary in Phoenix. The launch represents an important milestone as both AltMed Arizona and AltMed Florida are working to become fully integrated medical cannabis operations.
In Florida, MüV products are expected to be available for patients in the first quarter of 2018. CannaRoyalty owns 8.3% of AltMed and receives a 3.5% royalty on the net sales of MüV products until July 2026. The company also has the right to license MüV products in Canada, California, Nevada, Massachusetts, Washington, Oregon, and Puerto Rico.
We are monitoring this pullback and waiting for the shares to find a bottom. CannaRoyalty is currently trading below its 20, 50, and 150-day moving average and momentum is approaching oversold territory.
Source: Technical 420