#$tlry

The action is heating back up in the cannabis patch. Bigtime. Investors have been taught to sit on the sidelines in these stocks because “they keep going down”. That’s what happens in a bear market. These stocks got too far ahead of themselves a couple years ago, and we were seeing ridiculous valuations on a price-to-sales basis, and fears of a supply glut destroying the cannabis pricing market on a commodity level. We saw stocks in this space trading at 50x sales. But, fast forward about 18 months, and you have absurdity in the other direction. Investors have been taught to doubt pot stocks – taught they were a sucker’s bet. And they learned that lesson so well that you are now living in a world where a company making hundreds of millions of dollars a quarter can post 430% growth and still trade at 1.8x sales. Of course, it’s not just about the big names. There is a real narrative of entrepreneurial success going on here as well. Companies are solving problems and providing a strong product to an end market with seemingly bottomless demand. One big key is that we are now starting to see many of the high-growth cannabis stocks ramping above their 50-day moving averages as a group. That hasn’t happened in nearly two years, and it represents a strong signal – along with the valuation metrics – that we are now in a new cyclical cannabis bull market inside of the larger secular cannabis bull. With that in mind, we have picked out a selection of some of the most interesting names in the space for your consideration: Canopy Growth Corp (NYSE:CGC), Harvest Health & Recreation Inc (OTCMKTS:HRVSF), Cannabis Strategic Ventures (OTCMKTS:NUGS), Cresco Labs Inc (OTCMKTS:CRLBF), and Tilray Inc (NASDAQ:TLRY),.   Canopy Growth Corp (NYSE:CGC) engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. It’s perhaps the biggest overall name in the space when it comes to a combination of producing and investing in the space, so it has to be near the top of any measure as far as benefitting from a shift whereby full-scale legalization in the US market is concerned. According to its own materials, the company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands. This is also one of the most geographically diversified players in the cannabis space, with operations in 12 countries across five continents. One of its most important divestitures and strategic interests is Canopy Rivers Inc., a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. The company works collaboratively with Canopy Growth to identify strategic counterparties seeking financial and/or operating support. If you're long this stock, then you're liking how the stock has responded to the announcement. CGC shares have been moving higher over the past week overall, pushing about 8% to the upside on above average trading volume. Canopy Growth Corp (NYSE:CGC) pulled in sales of $123.8M in its last reported quarterly financials, representing top line growth of 49%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2.3B against $418.3M).   Harvest Health & Recreation Inc (OTCMKTS:HRVSF) bills itself as a company that cultivates, manufactures, and retails cannabis in the United States. The company just announced plans to divest select retail assets in California to Hightimes Holding Corp. Harvest and its affiliates intend to sell a portfolio of equity and assets with respect to 13 operational and planned dispensaries in California for total consideration including up to $5 million in cash, $7.5 million as a one-year promissory note with 10% interest, and $67.5 million in Series A Preferred Stock issued by High Times. Harvest will retain select retail dispensaries and licenses for potential retail locations in California following completion of this transaction. That news has helped to drive a major rip in the stock, but it doesn’t suggest clear value other than by reducing the burden of some likely difficult leverage levels. Harvest Health & Recreation Inc. is one of the first consistently profitable, vertically integrated cannabis companies with one of the largest footprints in the U.S. Harvest’s complete vertical solution includes industry-leading cultivation, manufacturing, and retail facilities, construction, real estate, technology, operational, and brand building expertise — leveraging in-house legal, HR and marketing teams, along with proven experts in writing and winning state-based applications. The company has more than 525 employees with proven experience, expertise and knowledge of in-house best practices that are drawn upon whenever Harvest enters new markets. Harvest’s executive team is comprised of leaders in finance, compliance, real estate and operations. Harvest Health & Recreation Inc (OTCMKTS:HRVSF) managed to rope in revenues totaling $49.9M in overall sales during the company's most recently reported quarterly financial data -- a figure that represents a rate of top line growth of 123%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($39.8M against $76.9M, respectively).   Cannabis Strategic Ventures (OTCMKTS:NUGS) is one of the largest publicly traded marijuana cultivators in the United States, and a rapidly growing story on the California cannabis scene. The company just announced that it has seen record total monthly cannabis sales and record sequential monthly cannabis sales growth so far in the month of April, with total gross cannabis sales for April running at an annualized pace of more than $6 million, up more than 400% over average monthly sales seen in calendar Q1. “This data should help to better contextualize our prior announcement detailing our expansion in total cannabis production capacity,” commented Simon Yu, CEO of Cannabis Strategic Ventures. “Demand is through the roof. We don’t see this as a consequence of the stay-at-home policy. This is about improving market positioning in a strong structural growth boom. We are establishing a wider and wider footprint in terms of distribution partners, and the overall market is continuing to experience powerful growth in demand at the end market level.” In other words, this is a new high-growth name in the space that is just starting to put up tangible signs of major traction in the California cannabis market, which is the largest marketplace on the planet for weed. And the fact that NUGS just pushed up its production capacity should suggest that this sudden explosion in growth is likely to continue in May and June and possibly through the rest of the year. That’s probably why we are starting to see the smart money move into shares of the stock over recent days.   Cresco Labs Inc (OTCMKTS:CRLBF) trumpets itself as a company that manufactures and sells medical cannabis products in the United States. It offers cannabis dry flower; vaporizer forms of cannabis; cannabis oil in capsule, oral and sublingual solutions; cannabis in topical; and other cannabis products. The company also provides cannabis infused edibles, including chocolate and toffee confections, fruit-forward gummies, and hard sweet and chews. Cresco Labs Inc. sells its products under the Cresco brand. In addition, it operators a Hope Heal Health dispensary in Fall River, Bristol County, Massachusetts. Traders will note 51% piled on for shareholders of the stock during the past month. CRLBF has witnessed a pop in interest, as transaction volume levels have recently pushed 56% beyond its prior sustained average level. Cresco Labs Inc (OTCMKTS:CRLBF) managed to rope in revenues totaling $47.8M in overall sales during the company's most recently reported quarterly financial data -- a figure that represents a rate of top line growth of 0%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($108.2M against $60.6M).   Tilray Inc (NASDAQ:TLRY) engages in the research, cultivation, processing, and distribution of medical cannabis. This is one of the highest profile names in the space. But if you look under the surface, it may also be the weakest because of the crushing burden of its debt-servicing costs at this point. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. was incorporated in 2018 and is headquartered in Nanaimo, Canada. One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations. And the stock has been acting well over recent days, up something like 18% in that time. Shares of the stock have powered higher over the past month, rallying roughly 36% in that time on strong overall action. Tilray Inc (NASDAQ:TLRY) generated sales of $46.9M, according to information released in the company's most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -8.2% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($96.8M against $92.4M). Read the full article

Yes, the market seems like a function for determining nothing other than the degree to which the global coronavirus pandemic will help or hurt any given stock. It’s hard to see anything else. But we would suggest that successful investors in operation now – judged a year from now – will be seeing something else right now. Playing a different game. Finding the real value on a larger growth curve that speaks to the world now and in the future. The most dramatic of this dynamic is what we currently see in the hemp, CBD, and cannabis space, which has been through a painful bear market for more than a year leading into the current market downturn. History is filled with examples of sector bear markets being exaggerated by a broad market or recessionary downturns that overextend the weakness in an otherwise undervalued space, granting contrarian “smart money” investors with a rare opportunity to gain access to long-term growth trends at absurdly undervalued prices. We believe that we might now be seeing such a scenario in the hemp, CBD, and cannabis space. We would highlight four key opportunities that present themselves right now: Tilray Inc (NASDAQ:TLRY), HempAmericana Inc (OTCMKTS:HMPQ), Canopy Growth Corp (NYSE:CGC), and Medical Marijuana Inc (OTCMKTS:MJNA).   Tilray Inc (NASDAQ:TLRY) engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. was incorporated in 2018 and is headquartered in Nanaimo, Canada. According to the company’s IPO announcement, “Tilray, Inc., a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, today announced the pricing of its initial public offering of 9,000,000 shares of Class 2 common stock. 6,524,000 shares of Class 2 common stock will be offered in the United States and certain other countries except Canada at a price to the public of US$17.00 per share for a total offering size of US$110,908,000 and 2,476,000 shares of Class 2 common stock, which we refer to as Subordinate Voting Shares, will be offered in Canada and certain other countries except the United States at a price to the public of CAD$22.451 per share for a total offering size of CAD$55,586,200. Based on current exchange rate1, the total combined offering size is approximately US$153,000,000.00.” One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations. In addition, High Park has developed new brands and products for the Canadian market. Upon the coming into force of federal legalization of cannabis for adult-use and corresponding provincial legislation, High Park anticipates fulfilling adult-use supply agreements and purchase orders in Quebec, Ontario, British Columbia, Manitoba, Nova Scotia, Prince Edward Island, Northwest Territories and Yukon on October 17, 2018. The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 17% in that timeframe. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -53%. Tilray Inc (NASDAQ:TLRY) pulled in sales of $46.9M in its last reported quarterly financials, representing top line growth of 202.2%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($96.8M against $92.4M).   HempAmericana Inc (OTCMKTS:HMPQ) is a more speculative opportunity on this list, but a very interesting one because, by all obvious accounts, the company is finally turning a corner into full commercialization, which has obvious implications for the value of the security right now. HempAmericana has been a perpetual “high potential” opportunity for at least a year. But we haven’t seen it blossom into a fully commercial entity because of some pretty standard obstacles that are frankly tough for any CBD, hemp, or cannabis company to navigate. But, more importantly, based on its news out this morning, the company has now moved beyond that point is at the starting gate to genuine revenue growth – at long last. According to its release, out today, “For a few months the Company was not able to process orders due to a change in Policy with the PayPal Platform not allowing Hemp related product sales. The Company has retained an Industry leading payment processor that accepts payment for Hemp products. The Company is very pleased to have been approved to accept credit cards through First Direct Financial. We recognize that this process took more time than we liked, but now we are ready to meet the ever-growing market demand and are fully ready to sell, process, and ship orders more efficiently than ever.” HempAmericana Inc (OTCMKTS:HMPQ) is an emerging leader in the CBD products market. The Company owns and operates a high-capacity, state-of-the-art CBD extraction and processing facility located in Augusta, Maine. This facility is armed with a supersized supercritical CO2 extraction system, centrifugal partition chromatography refinement technology, and a mechanized fully-automated CBD bottling system. The Company’s CBD oil business uses the brand designation, “Weed Got Oil”. HempAmericana also researches, develops, and sells products made of industrial hemp, including a popular brand of hemp rolling papers marketed under the brand name, “Rolling Thunders”. Hemp Americana’s CEO, Sal Rosillo, is a visionary in both the Cannabis and CBD space. This is a highly speculative name because we haven’t seen big sales growth kick in yet. But, based on all appearances, that shift is underway now and we may be hearing a lot more for this stock soon.   Canopy Growth Corp (NYSE:CGC) engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. According to its own materials, the company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands. In the company’s words, “Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.” This is also one of the most geographically diversified players in the cannabis space, with operations in 12 countries across five continents. And there has been plenty of PR work here. The Company is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and through its partly owned subsidiary, Canopy Health Innovations, has devoted millions of dollars toward cutting edge, commercializable research and IP development. Through partly owned subsidiary Canopy Rivers Corporation, the Company is providing resources and investment to new market entrants and building a portfolio of stable investments in the sector. One of its most important divestitures and strategic interests is Canopy Rivers Inc., a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. The company works collaboratively with Canopy Growth to identify strategic counterparties seeking financial and/or operating support. The company has developed an investment ecosystem of complementary cannabis operating companies that represent various segments of the value chain across the emerging cannabis sector. As the portfolio continues to develop, constituents will be provided with opportunities to work with Canopy Growth and collaborate among themselves, which the company believes will maximize value for its shareholders and foster an environment of innovation, synergy and value creation for the entire ecosystem. The CGC trading tape has been recently characterized by a pretty dominant offer, which hasn't been the type of action CGC shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -3% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -23%. Canopy Growth Corp (NYSE:CGC) pulled in sales of $123.8M in its last reported quarterly financials, representing top line growth of 49%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2.3B against $418.3M).   Medical Marijuana Inc (OTCMKTS:MJNA) is perhaps the weakest player on the game board in this discussion simply given its history of dilution and lack of respect for its shareholders. The company has leaned on hype and a lack of transparency. But it has a broad distribution footprint for CBD products, so it can’t be entirely dismissed. The company casts itself as an investment holding company that operates in the medical marijuana and industrial hemp markets. Its products range from patented and proprietary based cannabinoid products to seed and stalk or isolated high value extracts manufactured and formulated for the pharmaceutical, nutraceutical, and cosmeceutical industries. The company licenses its proprietary testing, genetics, labeling and packaging, tracking, production, and standardization methods for the medicinal cannabinoid industry. It engages in the research and development of cannabinoid-based pharmaceuticals; and marketing and distribution of cannabidiol hemp oil-based products. In addition, the company provides management support and services to cooperatives, collectives, health and wellness facilities, and medical clinics; and consulting and securities services to businesses and individuals in the legal cannabis industry. It’s subsidiary, Kannaway, is a network sales and marketing company specializing in the sales and marketing of hemp-based botanical products. Kannaway currently hosts weekly online sales meetings and conferences across the United States, offering unique insight and opportunity to sales professionals who are desirous of becoming successful leaders in the sale and marketing of hemp-based botanical products. Further, it focuses on the treatment of pain and other medical disorders with the application of chewing gum-based cannabis/cannabinoid medical products. And the stock has been acting well over recent days, up something like 2% in that time. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -13%. Medical Marijuana Inc (OTCMKTS:MJNA) generated sales of $17.7M, according to information released in the company's most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -14.3% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($6.5M against $10.8M, respectively). Read the full article

The House Judiciary Committee approved a Bill on Wednesday that would decriminalize marijuana at the federal level. The Marijuana Opportunity Reinvestment and Expungement Act of 2019 (the “MORE Act”) passed by a wide margin, 24-10, with bipartisan support. The impact of this bill could be extraordinary for companies operating in the space.   But, for investors, it’s hard to see through the veil of hype and understand where the most important opportunities truly lie. Here’s our list of the top 4 names to have on your radar asap: Canopy Growth Corp (NYSE:CGC), Aurora Cannabis Inc (NYSE:ACB), Sugarmade, Inc. (OTCQB:SGMD), Curaleaf Holdings Inc (OTCMKTS:CURLF), and Tilray Inc (NASDAQ:TLRY).       Canopy Growth Corp (NYSE:CGC) engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. It’s perhaps the biggest overall name in the space when it comes to a combination of producing and investing in the space, so it has to be near the top of any measure as far as benefitting from a shift whereby full-scale legalization in the US market is concerned. The company managed to rope in revenues totaling $90.5M in overall sales during the company's most recently reported quarterly financial data -- a figure that represents a rate of top line growth of 249.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($3.2B against $372.8M). According to its own materials, the company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, Bedrocan Canada, CraftGrow, and Foria brand names. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands. In the company’s words, “Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.” This is also one of the most geographically diversified players in the cannabis space, with operations in 12 countries across five continents. And there has been plenty of PR work here. The Company is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and through its partly owned subsidiary, Canopy Health Innovations, has devoted millions of dollars toward cutting edge, commercializable research and IP development. Through partly owned subsidiary Canopy Rivers Corporation, the Company is providing resources and investment to new market entrants and building a portfolio of stable investments in the sector. One of its most important divestitures and strategic interests is Canopy Rivers Inc., a unique investment and operating platform structured to pursue investment opportunities in the emerging global cannabis sector. The company works collaboratively with Canopy Growth to identify strategic counterparties seeking financial and/or operating support. The company has developed an investment ecosystem of complementary cannabis operating companies that represent various segments of the value chain across the emerging cannabis sector. As the portfolio continues to develop, constituents will be provided with opportunities to work with Canopy Growth and collaborate among themselves, which the company believes will maximize value for its shareholders and foster an environment of innovation, synergy and value creation for the entire ecosystem. Canopy Growth Corp (NYSE:CGC) has suffered a bit of late, with shares of CGC taking a hit in recent action, down about -5% over the past week. But a move toward opening up the US market even further should have an obvious impact on the stock’s value.     Aurora Cannabis Inc (NYSE:ACB) is one of the most widely diversified players in the cannabis space due to its powerful strategic investments, and it clearly also deserves to be at or near the top of this list. In addition, the company has demonstrated rapid organic growth and strong execution on strategic M&A, which to date includes 15 companies – MedReleaf, CanvasRX, Peloton Pharmaceutical,  Aurora Deutschland (formerly Pedanios), H2 Biopharma, Urban Cultivator, BC Northern Lights, Larssen Greenhouses, CanniMed Therapeutics, Anandia Labs, HotHouse Consulting, Agropro, Borela, and the pending acquisition of ICC Labs. We would also note that the company has invested in and established strategic partnerships with a range of leading innovators, including: The Green Organic Dutchman Holdings Ltd. (TSX: TGOD), Radient Technologies Inc. (TSXV: RTI), Hempco Food and Fiber Inc. (TSXV: HEMP), Cann Group Ltd. (ASX: CAN), Micron Waste Technologies Inc. (CSE: MWM), Choom Holdings Inc. (CSE: CHOO), Namaste Technologies Inc. (TSXV: N), Evio Beauty Group (private), Wagner Dimas (private), CTT Pharmaceuticals (OTCC: CTTH), and Alcanna Inc. (TSX: CLIQ). However, just drilling down into its core cannabis production operations, Aurora Cannabis Enterprises Inc, trumpets itself as “one of the world’s largest and leading cannabis companies” and a licensed producer of medical cannabis pursuant to ACMPR. We would expect expansion on the way given the inflow of investment capital. But, at present, the Company operates a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta, known as Aurora Mountain, is currently constructing a second 800,000 square foot production facility, known as “Aurora Sky”, at the Edmonton International Airport, and has acquired, and is undertaking completion of a third 40,000 square foot production facility in Pointe-Claire, Quebec, on Montreal’s West Island. The stock has suffered a bit of late, with shares of ACB taking a hit in recent action, down about -26% over the past week. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -28%. Aurora Cannabis Inc (NYSE:ACB) pulled in sales of $98.9M in its last reported quarterly financials, representing top line growth of 416.7%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($362M against $436.4M, respectively).     Sugarmade Inc (OTCMKTS:SGMD) is perhaps the most interesting name on this list because the company isn’t as subject to the whims of the cannabis market to the extent that cannabis is a commodity. The company engages in the supply of hydroponic and cultivation products. It expands margins for producers looking for an edge. The company recently acquired BZRTH, a leading ecommerce name in the hydroponics space. That move alone sets the company up to drive forward sales over the $37 million mark. The company just put out a shareholder letter in which it stated: “We are committed to a process that will leave Sugarmade as the single dominant publicly traded player in the hydroponics space. That process is well underway, and it involves strategic M&A activity and operational execution. A perfect example of this process is our recently closed acquisition of BZRTH. That move delivers us an ecommerce footprint and infrastructure that can’t be matched in the industry right now, including a best-in-class logistics platform and a 55k square foot fulfillment center. We are in the process of another landmark acquisition that will feed into this process with a great deal of synergy. This is a simple act of combinatorial mathematics. The big point is that we know the long-term reality: gaining dominance in hydroponics now will pay off massively down the line. That’s the axiomatic idea. And we are taking steps to realize that vision every day.” The company supplies hydroponic and indoor/outdoor cultivation products to the agricultural market sectors, including the legal cannabis cultivation, processing, and distribution sectors. The company also produces and wholesales custom printed and generic supplies, such as double poly paper cups for cold beverage; and disposable, clear, and plastic cold cups, and paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, edible packaging, food containers, soup containers, plastic spoons, and other related products. After acquiring BZRTH, the Company expects the new combined entity to drive EBITDA profitability, net-positive cash flows, and top-line sales of $37 million on a forward basis. “As of today, Sugarmade is one of the largest publicly traded hydroponics companies in the world,” remarked Jimmy Chan, CEO of Sugarmade. “The most important idea we want to convey to our committed shareholders right now is that this move was not a one-off deal. It’s part of a multi-step roll-up strategy designed to create the dominant force in this market as we look ahead to a world where hydroponics becomes the difference between success and failure for producers in the rapidly growing market for hemp and hemp-related crops in North America.”   Curaleaf Holdings Inc (OTCMKTS:CURLF) is a vertically integrated cannabis player that has started to move into the hemp-based CBD space in an aggressive fashion. The stock has been outperforming the broader hemp-cannabis-cbd complex in recent action, which is notable. The company just announced that it has opened its 27th dispensary in Florida at 3631 NW Federal Highway in Jensen Beach on Friday, November 15th. According to the release, “Curaleaf has the largest cannabis dispensary footprint in the US with 50 dispensaries across the country and continues to execute on its strategy of rapid expansion in Florida. The new 4,500 square foot location is accessible to patients from the Jensen Beach area, including the communities of Jupiter, Port St. Lucie, Stuart, Port Salerno and Palm City, and will offer a full range of premium quality medical cannabis products and private consultations by meticulously trained staff.” Curaleaf Holdings Inc (OTCMKTS:CURLF) operates a large number of dispensaries, 12 cultivation sites and 9 processing sites with a focus on highly populated, limited license states, including Florida, Massachusetts, New Jersey and New York. Curaleaf, Inc. leverages its extensive research and development capabilities to distribute cannabis products in multiple formats with the highest standard for safety, effectiveness, consistent quality and customer care. Curaleaf is committed to being the industry's leading resource in education and advancement through research and advocacy. Curaleaf Inc.'s Florida operations were the first in the cannabis industry to receive the Safe Quality Food certification under the Global Food Safety Initiative, setting a new standard of excellence. It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles. And the stock has been acting well over recent days, up something like 11% in that time. "We have been hearing from patients about the need for a full-service medical cannabis center along the Martin County and St. Lucie County coast," said Joe Lusardi, Curaleaf CEO. "Curaleaf is proud to be the first dispensary in Jensen Beach, and we look forward to serving this community." Curaleaf Holdings Inc (OTCMKTS:CURLF) managed to rope in revenues totaling $64.9M in overall sales during the company's most recently reported quarterly financial data -- a figure that represents a rate of top line growth of 0%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($140.3M against $64.1M).     Tilray Inc (NASDAQ:TLRY) engages in the research, cultivation, processing, and distribution of medical cannabis. The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. was incorporated in 2018 and is headquartered in Nanaimo, Canada. According to the company’s IPO announcement, “Tilray, Inc., a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, today announced the pricing of its initial public offering of 9,000,000 shares of Class 2 common stock. 6,524,000 shares of Class 2 common stock will be offered in the United States and certain other countries except Canada at a price to the public of US$17.00 per share for a total offering size of US$110,908,000 and 2,476,000 shares of Class 2 common stock, which we refer to as Subordinate Voting Shares, will be offered in Canada and certain other countries except the United States at a price to the public of CAD$22.451 per share for a total offering size of CAD$55,586,200. Based on current exchange rate1, the total combined offering size is approximately US$153,000,000.00.” One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations. In addition, High Park has developed new brands and products for the Canadian market. Upon the coming into force of federal legalization of cannabis for adult-use and corresponding provincial legislation, High Park anticipates fulfilling adult-use supply agreements and purchase orders in Quebec, Ontario, British Columbia, Manitoba, Nova Scotia, Prince Edward Island, Northwest Territories and Yukon on October 17, 2018. Even in light of this news, TLRY hasn't really done much of anything over the past week, with shares logging no net movement over that period. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -8%. Tilray Inc (NASDAQ:TLRY) pulled in sales of $51.1M in its last reported quarterly financials, representing top line growth of 408.6%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($122.4M against $130.2M, respectively). Read the full article

Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.