The USA Loves Investing in Canadian Cannabis
The largest cananbis ETF just passed $ 1 Billion in Holding Value
Ever since Canada announced its plans to legalize recreational cannabis, American investors have been paying close attention to the Canadian cannabis market. Now Canada is becoming the first G7 nation to legalize cannabis for adult recreational use, and has been dubbed “the wild west of pot”. Canada is the land of cannabis opportunity and the country’s cannabis licensed producers have been hot commodities on the stock market. Many fortunes have been made investing in this growing industry, and for American investors, Canadian cannabis is the place to make a play.
The excitement is just getting started too, as we recently saw alcohol magnate Constellation Brands Inc, invest a whopping US$ 3.8 billion into Canadian LP Canopy Growth Corp. This marks the largest deal to date and began an upswing in cannabis stock prices. Molson Coors Canada Inc. has also announced their agreeing to a joint venture to develop cannabis-infused beverages with a Canadian LP. Also, a giant of global liquor, Diageo Plc has been rumoured to be looking for a partner in cannabis.
Deals like this signal the intent of large consumer companies to partner up with cannabis producers. We can also see that there is confidence in rising consumer demand, which adds a measure of safety to cannabis investing. From small to large, Canadian licensed producers are where many American investors want to put their money. Popular investments include the largest licensed producers as well as Canadian Marijuana ETF’s like ETFMG Alternative Harvest ETF (ticker MJ) which has taken in roughly US$ 22 million during the month of August. Smaller LP’s are also getting a lot of attention as many are perceived like ‘diamonds in the rough’ with potentially undervalued stock. The investments and backing from large consumer brands is only stoking the fire.
As of August 17, 2018, there exist 115 licensed producers in Canada, with licenses ranging from cultivation, to production, to sale. Smaller LP’s have been viewed as having a larger upside, due to potentially under valued stock prices amongst the flurry of takeovers. Companies like INDIVA Ltd. (TSX-V: NDVA; OTCQX: NDVAF) who own production facilities and have visionary management teams to guide the companies are worth keeping an eye on.
August 24, 2018, saw INDIVA Ltd. qualify to trade on the OTCQX® Best Market. This means the company is now accessible to the multitude of American investors looking at Canadian cannabis. U.S investors can now also find up-to-date financial disclosure and real-time Level 2 quotes for INDIVA on www.otcmarkets.com .
INDIVA joins over 140 Canadian cannabis companies that cross-trade shares on the OTCQX market, thus maximizing their exposure to U.S. investors. Third party firm J.P. Galda & Co. sponsored the company for membership. American investors now have easier access to a solid and growing Canadian LP at a value entry point.
INDIVA is a Canadian licensed producer of high quality, medical grade cannabis. The company has received its Sales License and has its facility expansion 50% competed. INDIVA aims to produce upwards of 3,000 kgs. of dry cannabis flower annually – for sale and processing into cannabis oils, edibles and other derivative materials once approved to do so. These include Bhang™ brand edibles and Ruby™ cannabis infused sugars from DeepCell. The company is a dry flower producer that is capable to jump right into the proposed cannabis edibles market when permitted under law.
(This article is an educational and informative piece, as with any form of investing, please do your own due dilligence and research before investing. This article should not be taken as investment advice.)
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