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Canadian cannabis stocks have been one of the most attractive places to invest as the country prepares to legalize recreational marijuana before July 2018.This has made the Canadian cannabis market one of the hottest markets and we are favorable on this opportunity. During the last quarter, we have seen a significant amount of capital enter the Canadian sector and we do not expect this trend to end anytime soon. From Constellation Brands’ $250 million investment into Canopy Growth (WEED.TO) (TWMJF) to Aurora Cannabis’ (ACB.TO) (ACBFF) planned acquisition of CanniMed Therapeutics (CMED.TO) (CMMDF), there are several factors driving the Canadian cannabis market higher.

Today, we have highlighted 5 company developments that we find to be significant and will monitor how the market trades today.

Aurora-CanniMed Hearing to Take Place on Wednesday

Last week, the Ontario Securities Commission (OSC) issued a notice of hearing to consider the application filed by Cannimed Therapeutics (CMED.TO) (CMMDF) to intervene in Aurora Cannabis’ (ACB.TO) (ACBFF) attempted acquisition. The hearing is set for Wednesday and cannabis investors will be monitoring this development closely. CanniMed does not want this acquisition to go through and has been working on getting this deal rejected. We would be bullish on the combined company and see tremendous opportunity for synergies. Both companies are capitalizing on two of the most significant trends in the cannabis industry, international markets and cannabis oils. Aurora has a war chest of a cash, strategic relationships, and significant infrastructure in Canada and abroad. If this deal is completed, Aurora would significantly enhance and expand CanniMed’s global reach. Aurora has made strategic investments in Hempco Food and Fiber Inc. (HEMP.V) and Radient Technologies (RTI.V), which would significantly benefit the combined company. We are favorable on these investments and the benefit they would have on CanniMed’s cannabis oil business. The combined company would have the capital and resources to execute on the global medical marijuana market and we are bullish on this opportunity.

Isodiol Announces a Major Acquisition 

Yesterday, Isodiol International Inc. (ISOL.CN) (ISOLF) entered a binding agreement to acquire the Biosynthesis Pharma Group (BSPG), an industry leading producer of industrial hemp, it’s derivatives and pharmaceutical compounds for use in the medicinal, nutraceutical, food and cosmetic industries. Under the agreement, Isodiol will acquire BSPG for $12.5 million to be paid out over 12 months and $37 million in stock compensation (subject to a 36-month escrow). Through BSPG’s proprietary extraction methodologies, BSPG produces cannabinoids that are used in pharmaceutical applications to benefit those suffering from a range of life-threatening and non-life-threatening illnesses. BSPG is currently conducting clinical trials involving its product through strategic partnerships around the globe. The acquisition includes multiple entities that will benefit Isodiol. Each entity is intended to have a distinct purpose within the Isodiol organization, whether it be defined by geography, applicable laws, or line of business. The entities are based in Hong Kong, Austria, China, the U.K. (3 entities are based here), and Brazil.

Abattis Announces $6 Million Financing 

Abattis Bioceuticals Corp. (ATT.CN) (ATTBF) was one of the top performing cannabis stocks last week and the shares rallied more than 125% during this time. After the market closed on Friday, Abattis announced a non-brokered private placement that can generate up to $6 million in gross proceeds. The company will issue up to 13,953,488 units at $0.43 each and we expect the shares to trade lower on this news. Although Abattis plans to use the proceeds for strategic investments, deployment of extraction equipment and general working capital, the offering is being done at a more than 20% discount to the current stock price. We are favorable on the recent developments and believe that Abattis has significantly improved its position within the Canadian cannabis market over the last year. The company recently sold a majority stake in its licensed dealer to Emerald Health Therapeutics (EMH.V) (EMHTF) and we are monitoring how Abattis executes from here.

Goldman Sachs Upgrades GW Pharmaceuticals

Last week, GW Pharmaceuticals (GWPH) received a major boost from Goldman Sachs after the broker-dealer upgraded the company from Hold to Buy and increased its price target on the shares from $124 to $174. After the upgrade, GW recorded a significant gain we remain bullish on the Nasdaq-traded cannabis biotech firm. Goldman Sachs is one of the most highly followed broker-dealers and has one of the top equity research teams in the world. GWPH is trading above $120 after the rally last week and we are bullish on the company’s long-term outlook. We consider GW to be one the most attractive opportunities due to its deep pipeline of cannabinoid therapies which are in advanced stages of FDA testing, its strong cash position after a $225 million raise, and its proprietary intellectual property. We consider GW to be an acquisition candidate and are favorable on the shares at current levels.

MassRoots Trades Volatile after the CEO Change

In a surprising turn of events, Isaac Dietrich was able to regain control of the company he founded, MassRoots (MSRT). This development follows a very volatile and confusing two months where Dietrich was removed as the company’s CEO. The market responded in volatile manner to this announcement and we continue to monitor the shares from the sidelines. After this development, investors have more questions than answers and we are monitoring how the company executes from here. There are many questions regarding previous transactions, like CannaRegs, and the current focus of the business. We expect a lot of these questions to be answered soon and remain on the sidelines at current levels. MassRoots has taken shareholders on a bumpy ride and we continue to monitor this situation. We have taken a more cautious approach with the cannabis technology company and will keep the stock on our radar.