VANCOUVER, British Columbia, March 12, 2019
(GLOBE NEWSWIRE) -- Cannabis sales have been soaring since
legalization in Canada but there's a lot more to come as the
industry continues to change. With more retailers opening for
business and the edibles market likely coming online this year,
there's going to be many more growth opportunities. Here are some
of the hottest cannabis stocks right now that are positioning
themselves to take advantage of the fast-growing retail
market.
Westleaf Inc. (WL.V) (OTCQB: WSLFF)
Westleaf has been making a name for itself in the industry as it looks to become a dominant force in the retail market. It's set to become one of Canada's largest premium cannabis retailers after its acquisition of Canndara Canada Inc. earlier this year.
With many locations secured throughout Western Canada, Westleaf is banking on its unique store environment - Prairie Records - to attract consumers. However, The Company is more than just a retailer as its goal is to become vertically integrated as well.
The Company came closer to achieving that when they recently announced that it was making significant progress on its Thunderchild facility. With Westleaf "substantially completing" the exterior of the facility, it is now focusing on the interior. Once completed, the facility will produce around 14,600kg of flower annually in the large 130,00 square foot location.
Westleaf CEO Scott Hurd believes the facility will give The Company a big advantage:
This facility is designed to produce some of the highest quality cannabis in the industry. We expect it will provide us the source product to feed our extraction and processing facility in Calgary, Alberta and can be sold through our wholly owned retail stores, Prairie Records, now opening across Western Canada. This three-pronged approach provides us a unique advantage in the industry as we will be able to adjust product mix based on real time consumer feedback from the retail level and allow us to capture margin across the entire vertical cannabis chain.
In addition, Westleaf is also hoping to attract some more investors as it recently began trading on the over-the-counter market in the US under the ticker symbol WSLFF. It's an important step to help The Company not only to tap into more funding but also to gain more publicity south of the border.
Organigram Holdings Inc (OGI.V) (OTC: OGRMF)
Organigram is another company looking to have a big impact on the retail market. The Company recently announced that it had signed a Letter of Intent with the province of Quebec that will make it just the third licensed cannabis producer to have a distribution agreement in all 10 provinces.
We are proud to work with our partners across the country to help ensure Canadians have access to a reliable supply of premium cannabis products for both medical and adult recreational use. We look forward to continuing to build on these relationships as we look ahead to the legalization of cannabis edibles
- Organigram CEO Greg Engel
With a strong presence across the country, Organigram will be on the shelves of many different retailers and will have a big impact on how things play out in the industry. The Company recently said that it expects its sales to double in Q2, after already showing strong growth in Q1. Sales that quarter reached $14.5 million, eclipsing the $2.4 million in revenue that Organigram generated in the previous year. If it's able to keep up the pace, Organigram could end up among one of the bigger companies in the industry when all is said and done.
Namaste Technologies Inc. (TSX-V:N) (NXTTF)
Namaste has its sights set on the edibles market after making a big investment it believes could yield significant returns for the Company. Last week, Namaste announced that it was purchasing 49% of the shares in Choklat Inc., a Calgary-based chocolate manufacturer. Choklat already has a supply agreement with Sobeys and its products are in 70 retailers in Western Canada. Edibles are a very popular form of cannabis, and chocolate should be a big draw for consumers.
Not only does Choklat make good chocolate, but the technology that it possesses could make it very valuable once edibles are legalized.
As one of the only chocolate makers in Canada I had access to equipment and processes that other chocolatiers and confectioners don't have. My research led me to discoveries which, when legal, will allow us to infuse both THC and CBD into chocolate and sugar in such a way that there is absolutely no discernible "weed" flavour or smell, and with a dosage accuracy that is almost pharmaceutical grade.
- Choklat CEO Brad Churchill
Edibles have been very successful in the U.S. and they'll likely be staples in pot shops across Canada as well. If Namaste's and Choklat's products make it to the retail market, it could translate into additional sales for the Company.
The Green Organic Dutchman Holdings Ltd (TGOD.TO) (TGODF)
The Green Organic Dutchman, known as TGOD, is another company that's being aggressive in its pursuit of market share. Last month, the Company secured a supply deal with the Ontario Cannabis Retail Corporation, which currently operates the Ontario Cannabis Store (OCS) - the only way cannabis customers can legally obtain marijuana in the country's largest province at this time. The deal is a great way for TGOD to penetrate that market. While Ontario will open up the market in April to private retailers, just 25 will be permitted initially, meaning the OCS will still likely be generating a lot of traffic.
This represents the first of many provincial supply agreements planned for our premium organic product as our domestic facilities near completion and production increases throughout 2019
- Green Organic Dutchman CEO Brian Athaide
However, the Company isn't stopping there as this week it announced it reached a deal for an extraction services contract with Valens Groworks Corp (CSE:VGW) which will help with TGOD's hemp strategy, especially if it plans to expand into the U.S. market. Valens will help purify cannabis and help produce high-quality resins and distillates.
Organic resonates with consumers, and Valens looks forward to helping accelerate TGOD's time to market with the launch of its hemp-derived CBD product line in the coming months
- Valens CEO Tyler Robson
Emerald Health Therapeutics Inc (EMH.V) (EMHTF)
Emerald Health recently increased its capacity for sales growth through its joint venture in Pure Sunfarms Corp., which now has over a million square feet of space that's licensed for cannabis cultivation. Given the supply issues plaguing the country, Emerald Health could help fill a big gap in the industry by producing more cannabis. Although the Company has generated limited sales thus far, that could soon change as it starts to accelerate production.
With Emerald’s 50% stake in one of the largest fully operational cannabis production facilities in the world, we expect to realize significant economic value from Pure Sunfarms. We expect our supply agreement with Pure Sunfarms for 40% of its 2019 production, along with our Quebec and hemp operations, to support strong quarter to quarter sales growth this year.
- Emerald Health Therapeutics President and Executive Chairman Dr. Avtar Dhillon
With that sort of cultivation capacity, Emerald products could soon find its way into retail pot shops across the country.
The original post can be found here: https://mugglehead.com/5-cannabis-stocks-that-could-see-significant-growth-in-retail