E Cannabis Central: Dismal Month For Every "Pot" Stock & ETF Except Neptune Wellness Solutions Inc.

  • Curaleaf Holdings Inc. (CSE:CURA, OTCQX: CURLF) whose stock is UP by 13.8% since July 1st although it is still DOWN by 30% from its 5-month high.  It is a mid-cap stock ($4.9B).
    • Curaleaf is the leading vertically integrated multi-state cannabis operator in the United States and solidified its position with the planned acquisition two weeks ago of the privately-held GR Companies which will close in early 2020 pending approval from shareholders as well as the board of directors from both companies.
    • With the acquisition, Curaleaf is getting control of Grassroots’ 61 dispensary licenses, 20 of them currently in operation, as well as 17 cultivation and processing licenses. After the merger, Curaleaf’s presence will expand to 19 states, up from 12. The newly combined company will have 131 dispensary licenses, 68 physical locations, 20 cultivation sites and 26 processing facilities.
  • Auxly Cannabis Group Inc. (TSXV:XLY, OTCQX: CBWTF) whose stock is UP 6.1% since the beginning of the month although it still DOWN 15.5% from its March high. It is a small-cap stock ($507M) with a high beta of 5.5.
    • Last week the England-based tobacco company Imperial Brands (LSE:IMB,OTCQX: IMBBF) invested approximately C$123 million in Auxly by way of a debenture convertible into 19.9% ownership at a conversion price of $0.81 per share.
    • As part of the deal, Auxly will gain immediate access to licenses for Imperial’s lineup of vape technology through subsidiary Nerudia, a vaporizer developer working on the design and production of next generation vaping products.
  • Heritage Cannabis Holdings Corp. (CSE:CANN, OTCQX: HERTF) whose stock is UP by 6.3% since July 1st although it is still DOWN 27% from it 5-month high. It is a small-cap stock ($218M) with a 3.9 beta.
    • Last week it completed its transaction to acquire 30% of Endocanna Health Inc., a company based in Los Angeles, CA that has developed Endocannabinoid DNA testing to assist individuals in taking control of their own health by utilizing cannabis products specifically suited for themselves.
    • Heritage has recently entered into a Contract Manufacturing Agreement with Cronos Group Inc. (TSX:CRON, Nasdaq: CRON), for the filling and packaging of vaporizer devices for the Canadian cannabis adult-use and medical market which it expects will provide it with the quality and optionality for when they introduce their proprietary vape pen formulations.
    • On May 31st Heritage signed a Processing and Supply Term Sheet with Canntab Therapeutics Limited (CSE: PILL, OTCQX: CTABF), a leading innovator in hard pill oral dose therapeutic cannabinoid and terpene blends, for the purpose of processing hemp supplied by Canntab into high quality CBD oil which it will transform into capsules required for the production of Canntab's planned roll out of their ingestible oral cannabis products and for Heritage, FSD Pharma Inc., and further white labelling opportunities. 
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Disclaimer: In spite of the positive outlook for the above stocks this article highlights the fact that "pot" stocks are very volatile so it imperative that any investor contemplating ...

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David J. Williamson 10 months ago Member's comment

Thanks Lorimer, if you could only invest in one cannabis company, which would it be?