Health Business news
Cannabis Companies Make 'Hay' While The Sun Shines

Cannabis Companies Make 'Hay' While The Sun Shines

USA News Group News Commentary

LOS ANGELES, September 22, 2017 /PRNewswire/ --

USA News Group - There may be no guarantees that pot will end its prohibition in Canada as scheduled in 2018, but you'd never know it from the popular Canadian cannabis companies.

These firms just keep making "hay" and they are seeing their values rise continuously.

Companies on the move in the grower, and LP (Licensed Producer) category include Aphria (OTC: APHQF) (TSX: APH.TO), Canopy Growth (OTC: TWMJF) (TSX: WEED.TO), Aurora Cannabis (OTC: ACBFF) (TSX: ACB.TO), and MYM Nutraceuticals Inc. (OTC: MYMMF) (CSE: MYM.CN).

Investors really like what they're seeing so far.

With few exceptions, marijuana stocks have been trending decisively higher over the trailing-12-month period. According to reviewers, of the dozen largest pot stocks by market cap, the average marijuana stock is up well in excess of 100%.

Among the best known are Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF), Aphria (TSX: APH) (OTCQB: APHQF), and Aurora Cannabis (TSX: ACB) (OTCQX: ACBFF). These are companies that have either been profitable on a full-year basis or have reported a profit in their most recent quarterly results.

Other cannabis LPs joining the race to produce include MYM Nutraceuticals Inc. (CSE: MYM) (OTCQB: MYMMF), a developer of two sizeable production operations, multi-brand development and product distribution.

As a group, these companies show no signs of slowing their development or investment into increasing operational capacity in anticipation of broad legalization.


One main reason this group is gaining ground is Canada's expansive medical-cannabis industry.

Medical marijuana has been legal in Canada since 2001, and according to Health Canada data, the number of eligible registered medical patients is increasing by about 10% a month. 

The rapid growth in medical-cannabis customers has encouraged all of these companies to expand their production capacity and they doing so quickly.

Canopy Growth took on an acquisition, completing its buyout of Mettrum Health earlier this year. Canopy's Tweed facility in Niagara-on-the-Lake, Ontario, which covers 350,000 square feet of greenhouse space, is currently the world's largest marijuana greenhouse.

The remaining other three companies are expanding mostly through well planned, organic growth.

Aphria's expansion phase should boost its growth capacity to 1 million square feet, while Aurora Cannabis' project involves a facility near the Edmonton Airport that is expected to be more than double the size of Canopy's space at 800,000 square feet of growing room with a capacity of 100,000 kgs of cannabis annually.

The wild card here is MYM Nutraceuticals. This upstart is going full speed on two planned facilities; a grow operation in Laval, Quebec to be completed in Q4 2017, and the mother of all facilities -a 1.5 million square foot greenhouse facility in Weedon, Quebec.


MYM Nutraceuticals and its majority-owned subsidiary CannCanada signed an exclusive deal with the Quebec municipality of Weedon to build its 1.5 million-square-foot cannabis production facility, consisting of fifteen 100,000-square-foot-greenhouses in 2016.

Its efforts are seen as a way for the community to create jobs and spark an entire industry in the process. For its part, the town of Weedon itself is acquiring the 329 acres of land for MYM to establish its mega facilities.

No wonder they see this as a long-term play. This has been a real win for MYM.

Eventually this massive marijuana operation will be one of the largest grow operations on the planet with the potential to produce over 150,000 kg of cannabis per year.

But MYM is no one trick pony. The company appears well diversified.

Along with growing and cultivation at Laval and Weedon, MYM is advancing formulation and production to support branding and distribution of its entities Joshua Tree, MyHemp Skin Therapy, and HempMed offerings.

In addition to rapid growth from medical-cannabis consumers, Canadian Prime Minister Justin Trudeau introduced legislation back in April that would potentially legalize recreational weed by as soon as July 2018.

According to the Canadian government, legalizing recreational pot would generate an additional $5 billion to $7 billion a year in marijuana sales.

That's a massive opportunity for all pot stocks, and clearly these players want to have the grow capacity to handle a possible surge in demand.

Even with producers like MYM Nutraceuticals coming on stream, the industry not likely to supply enough marijuana to fill the huge demands in a post legalized environment. In order to meet just the low end of the estimates for the adult-use market, Canada would have to produce over 600,000 kg of cannabis a year.

Spread over entire industry the numbers are even more impressive.

An aggregate of 300% growth in legal U.S. sales between 2016 and 2021 is expected to reach approximately $17 billion. In any case, there are big opportunities arising.

It seems obvious that Canadian pot companies have set the standard with quick sales growth, generally falling growth costs, and solid profits.

Whether legalized through a lifting of prohibition or not, companies building capacity, brand and distribution now continue to bask in the glow of marijuana's current high point.


Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF)

The granddaddy of the corporate cannabis sector, Canopy Growth is the world's largest diversified cannabis company. Canopy boasts a wide offering of distinct brands and curated cannabis varieties in dried, oil and capsule forms. Most widely recognized is Canopy's subsidiary Tweed which is the world's most recognized marijuana production brand, as well as an industry educator. Accompanying Tweed in Canopy's portfolio is medical-grade cannabis producers Bedrocan Canada. In total, Canopy Growth's numerous state-of-the-art production facilities total over half a million square feet of GMP-certified indoor and greenhouse production capacity.


Aphria Inc., boasts itself as one of Canada's lowest cost producers that produces, supplies and sells medical cannabis. Located in the greenhouse capital of Canada, Leamington, Ontario, Aphria provides pharma-grade medical cannabis, and quality patient care. Aphria was the first public LP to report positive cash flow from operations, and the first to report positive earnings in consecutive quarters.

Aurora Cannabis (TSX: ACB) (OTCQX: ACBFF)

Through its wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., Aurora Cannabis is a major LP, operating a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta. Aurora made waves when it announced the construction of its 800,000 square foot "Aurora Sky" facility second 800,000 square foot production facility at the Edmonton International Airport. Aurora's also involved in Quebec, with its third 40,000 square foot production facility set to be completed in Pointe-Claire, Quebec, on Montreal's West Island. Aurora also holds a minority stake in leading extraction technology company Radient Technologies Inc., based in Edmonton, and a minority stake in Australian company Cann Group Limited, which was the first in Australia to conduct research on and cultivate medical cannabis. Aurora also owns German wholesale importer, exporter, and EU medical cannabis distributor Pedanios. 

For a more in-depth look into MYM you can view the in-depth report at USA News Group:

Article Source: 

USA News Group

Legal Disclaimer/Disclosure: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of USA News Group only and are subject to change without notice. USA News Group assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.

DISCLAIMER: USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Contact Information:
U.S. Phone: +1(954)345-0611

Prev Article
Next Article

> Article Date par USA News Group

Read: 19 views

Notes :

Source : PR Newswire


Related content

: Latest news

Most read: scientific news



Follow us...

google plus Facebook twitter Newsletter



Plan du site