TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
The cannabis sector recorded mixed movements as the overall market was under pressure yesterday and investors are closely watching these movements after the recent developments.
Canada’s recreational marijuana market is expected to open before July and this will be a catalyst for the companies levered to this opportunity. Although Canada represents a very attractive opportunity, we continue to prefer companies that are also levered to emerging international markets such as Germany and Australia.
The cannabis sector continues to evolve rapidly, and we are closing monitoring these changes. Today, we highlighted 3 recent company developments that we find to be significant and that investors should be aware of.
Aphria: License Amendment More Than Triples Production Capacity
Yesterday, leading Canadian marijuana producer Aphria (APH.TO) (APHQF) announced a major milestone and received a license amendment from Health Canada that provides 200,000 square feet of additional production as part of its Part III expansion. This will more than triple the company’s production capacity and is a significant development for the company.
In 2018, the Canadian marijuana producer has made two strategic acquisitions and has significantly improved its leverage to emerging marijuana markets all over the world. We expect Aphria’s acquisition of Nuuvera (NUU.V) to close in the coming weeks and are favorable on the combined company.
Aphria is a stock that cannabis investors need to watch and we consider the company to be a long-term investment. Aphria is led by a management team with a proven track record of success and has been laser focused on execution. We are bullish on the recent developments and expect the company to be one of the greatest beneficiaries of Canada’s recreational market.
CannTrust: Enters Denmark’s Medical Marijuana Market