Cannabis stocks saw a boost on Tuesday, following the release of three separate surveys that showed that Americas are increasingly in favor of cannabis legalization. Presently, 10 states, as well as D.C., have legalized recreational cannabis while 33 states that have given medicinal cannabis the green light. The North American legal cannabis market generated $12 billion last year, and analysts forecast that it will hit $25.5 billion by 2021, according to a report by Cannabis Business Plan.
The rapid growth of this budding industry is fortified by increased legalization and the increased use of cannabis in medical applications. As cannabis continues to produce a more favorable public opinion, investors seeking opportunities may benefit from keeping tabs on the cannabis sector.
Leafbuyer Technologies, Inc. (LBUY), a leading cannabis technology and marketing platform that connects consumers to dispensaries and product companies, announced that its quarterly cash sales growth rose 36% year over year in the quarter ending March 31, 2019. The marijuana stock attributes this success to platform enhancements, order ahead and Leafbuyer loyalty as well as a multi-state sales team. Leafbuyer’s go forward plan is to continue to expand into newly legal US markets, while increasing consumer retention to boost bottom line revenues.
“This growth provides momentum and a solid foundation for 2019. As we increase our national footprint and expand our industry leading platform, we’re forecasting significant sales gains through the remainder of the year,” said Kurt Rossner, CEO.
Last month. Leafbuyer announced that the number of its Greenlight platform users has reached nearly 80,000. The platform allows consumers to order cannabis products ahead, earn loyalty points, and cut the line to pick up and pay at participating dispensaries. At the time of this news release, the number of Leafbuyer dispensary clients with capabilities grew to 60 dispensaries, located throughout the states of California, Colorado, Oklahoma, and Michigan.
Aurora Cannabis Inc. (ACB), a world leading cannabis company, today had Bank of America (BAC) initiate coverage on the marijuana stock giving it a buy rating and price target of $11. Aurora announced entering a binding letter agreement with Hempco Food and Fiber Inc. (HEMP), a provider of hemp-based foods, fiber and nutraceuticals. Per the agreement, Aurora will acquire all of the issued and outstanding common shares not already owned of Hempco and pay $1.04 per share in common shares of Aurora, for a valuation of C$63.4 million.
“Our goal is to strengthen our CBD-from-hemp supply chain as well as our hemp business of hemp-based superfoods, nutraceuticals and fibers. With vertical integration, product innovation expertise, and global reach, we are well positioned to extend our market share in these potential multibillion-dollar industries. We look forward to executing with the Hempco team on our global hemp and CBD strategy, and we invite the Hempco shareholders to join us on this exciting journey” said Terry Booth, CEO.
The company provided an update on the status of Aurora Sun, its latest and largest Sky Class facility, which is currently under construction that now it will be expanded by 33% from its original plans totaling to 1.62 million square feet to meet consumer demands. Aurora projects an expected production capacity at Aurora Sun in excess of 230,000 kg of cannabis annually.
Canopy Growth Corporation (CGC) (WEED), a world-leading diversified cannabis and hemp company, also today had had Bank of America (BAC) initiate coverage on the marijuana stock giving it a buy rating. On Tuesday, Co-CEO Bruce Linton updated the company’s revenue guidance at a cannabis conference in Toronto in which Canopy is anticipating at least $744 million in revenue in fiscal 2020, beating analyst estimates by 19 percent, Linton said.
The company also announced the completion of an all-cash acquisition of Spain-based licensed cannabis producer Cáñamo y Fibras Naturales, S.L. (Cafina). The acquisition paves the way for Canopy to expand its European production footprint.
“Operating multiple production assets within Europe will allow us to increase revenue in the EU free of supply constraints,” commented Mark Zekulin, President & Co-CEO. “This strategic acquisition in a scalable, low-cost production environment diversifies our owned production capabilities in Europe, similar to our approach in Canada where we have production facilities in seven different provinces. Adding Cafina will allow us to quickly build out our presence in Spain using its existing cultivation licence as a launch pad, while ensuring our Canadian footprint – the largest in the world – can continue to serve the medical and recreational needs of Canadians.”
HEXO Corp (HEXO), consumer packaged goods cannabis company, had Bank of America (BAC) initiate coverage on the marijuana stock today giving it a buy rating. Most recently, the company announced reaching a significant milestone of completing the first harvest in its 1 million sq. ft. expansion.
“Completing the first harvest in our 1,000,000 sq. ft. greenhouse expansion showcases the dedication and hard work of the entire HEXO team,” said Sébastien St-Louis, CEO and co-founder. “We are very proud of our continued ability to execute on our plans, creating value for our shareholders and demonstrating our commitment to our customers. This cultivation milestone means that an expanded HEXO product offering will be available to more Canadians shortly.”
In mid-March, HEXO announced a definitive arrangement agreement to acquire Newstrike Brands Ltd. (NWKRF) in a stock deal valued C$263 million ($196.7 million). This acquisition which will boost HEXO’s production capacity to 150,000 kg annually while increasing its domestic market access to 9 provinces.
This blog is an affiliate of Midam Ventures, LLC. Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC (owners of MarijuanaStocks.com), Midam Ventures LLC and Leafbuyer Technologies Inc., Midam is being paid $50,000 for a period of 30 days beginning November 1, 2018, and ending November 30, 2018. Midam has been paid an additional $50,000 and 40,000 common restricted shares of Leafbuyer Technologies, Inc. extending the contract another 30 days ending December 31, 2018. Midam has been compensated an additional $50,000 by Leafbuyer Technologies and has extended its period of coverage to January 31, 2019. Midam has been compensated an additional $50,000 by Leafbuyer Technologies and has extended its period of coverage to March 1, 2019. Midam has been compensated an additional $50,000 by Leafbuyer Technologies and has extended its period of coverage to April 1, 2019. Midam has been compensated an additional $100,000 by Leafbuyer Technologies for a period of coverage from April 12, 2019 to June 12, 2019. Midam owned 77,000 shares of Leafbuyer Technologies. Midammay buy or sell additional shares of (LBUY) in the open market at any time (as of 3/29/2019) Midam Ventures no longer owns 77,000 shares of (LBUY), including before, during or after the Website and Information, to provide public dissemination of favorable Information about Leafbuyer Technologies Inc. Click here for full Midam disclaimer.