This is a copy of the March 17th edition of our weekly Newsletter, which we have been publishing since October 2015.
As 2018 ended and we shared our outlook for 2019, cannabis stocks had melted down with the overall market and following a glut of new issues in the U.S. While we don’t normally provide projections for the sector in terms of where the stocks are headed, we pointed out that the recent price declines didn’t reflect the promise of the sector. Indeed, the prices disconnected from the fundamentals during Q4, but the rally that began in October of 2017, when Constellation invested initially in Canopy Growth and just ahead of California’s legalization, remains intact despite the pressure at the end of the year.
By any measure, the climb from Q4’s abyss has been robust. Year-to-date, the New Cannabis Ventures Global Cannabis Stock Index has rallied over 55%. We are seeing several stocks make new highs, including some of the multi-state operators, a few of the Canadian LPs and two CBD sellers. In Canada, the entire universe of Canadian LPs has rallied over 52%, but the performance among the larger names has been even stronger. In general, higher quality companies are leading the rally.
Many of the themes we discussed at year-end are playing out, including consolidation in Canada and in the United States and the ramping up of revenue. Q4 financial reports will continue to trickle in over the next six weeks, and we look forward to the next set of quarterly reports beginning in May. We continue to believe that bigger numbers and very rapid growth will fuel increased investor interest in the sector. Also contributing to an expanded investor base is the continued migration to major American exchanges.
Other themes emerging early in the year include improved governance and cross-industry strategic partnering. All of these developments are setting up the industry to attract more investment. Add in a very positive state legalization outlook and at least a neutral if not positive regulatory outlook at the federal level, and it’s clear that the recovery in cannabis stocks is likely sustainable. From our vantage, the market is anything but overheated at present, and we remain optimistic despite the disappearance of the bargain prices at year-end.
After having announced the closing of the $1.6 billion business combination with MPX Bioceutical last month, iAnthus has opened its second New York medical cannabis dispensary, Hudson Valley, as well as its third Florida location, GrowHealthy. iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry.
To learn more, visit the iAnthus Capital Holdings Investor Dashboard that we maintain on its behalf as a client of New Cannabis Ventures, and click the blue Follow Company button in order to stay up to date with their progress.
New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:
- Exclusive: 44 Top Revenue Generating Cannabis Stocks Ranked as of March 15th
- 48North to Raise $25 Million Selling Units at $1.36
- Acreage Holdings Q4 Pro Forma Sales Reach $23 Million
- CV Sciences Q4 CBD Revenue Increases 96% to $14.2 Million
- Harvest Health to Acquire Verano Holdings for $850 Million in Stock
- HEXO Q2 Net Revenue Grows 135% from Q1 to $13.4 Million
- Nelson Peltz to Advise Aurora Cannabis and Gains 19.96 Million Options Stake
- Newstrike Sells Out at Low Premium to HEXO Corp in $263 Million Stock Deal
- Michigan Cannabis Company Green Peak Innovations Raises $30 Million
- Exclusive: Septuagenarian Entrepreneur Navigates Challenges to Bring Quality Medical Cannabis to East Coast
- Exclusive: Why GTI’s $290 Million Bet on Essence Cannabis Dispensary is No Gamble
For investors interested in the cannabis industry and for operators looking to tell their differentiated stories, there is no better event than the Benzinga Cannabis Capital Conference. After highly successful events in Miami and Toronto in recent months, Benzinga returns to Toronto at the Fairmont Hotel next month, and we are excited to partner with them again. For high quality companies interested in presenting, please email PatrickLane@Benzinga.com to learn about the many opportunities available.
Tickets are limited! New Cannabis Ventures should use code “NCV” to ensure a seat for a 20% discount. We look forward to seeing you there!
To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.
Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers as well as the American Cannabis Operator Index.
View the Public Cannabis Company Revenue Tracker, which ranks the top revenue producing cannabis stocks that generate industry sales of more than $2.5m per quarter.
Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.
Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.
Consider subscribing to 420 Investor, Alan’s comprehensive stock due diligence platform since 2013 for more in-depth information and market intelligence about the publicly traded cannabis sector.
Find your place in the cannabis industry by visiting our Careers and Jobs Page and learn which companies are hiring aggressively.
Alan & Joel