The U.S. cannabis stocks we’ve identified today that are listed in Canada all have superior one-year returns
SmallCapPower | October 30, 2018: Today we have weeded out three U.S. cannabis stocks trading in Canada that have delivered strong returns for shareholders over the past 12 months. As the hype surrounding the Canadian cannabis space starts to die down, investors will look towards opportunities south of the border, where the potential market size is orders of magnitude larger than that of Canada’s. As individual states continue to legalize cannabis at the state level, the market for cannabis in the U.S. will continue to grow. We’ve dug up three stocks with major U.S. operations that have strong one-year returns and offer investors a compelling story for continued growth over the coming years.
1933 Industries Inc. (CSE:TGIF) – $0.42
Formerly known as Friday Night Inc., the Company operates cannabis and hemp-based assets in Las Vegas, Nevada. 1933 Industries owns 91% of Alternative Medicine Association, LC, a licensed cultivator, producer and developer of cannabis-based products. The Company also has a 91% stake in Infused MFG, a hemp-based CBD producer. 1933 Industries has a 12,000 sq. ft. cultivation and production facility and a 5,000 sq. ft. CBD-infused production facility. The Company plans an expansion of 67,000 sq. ft. and has already purchased five more acres of land in Las Vegas for future expansion. The Company’s Infused Canna Hemp line of CBD-infused products recently reported monthly revenues of over US$600,000, compared to US$7,403 in June 2017.
The Tinley Beverage Company Inc. (CSE:TNY) – $0.66
Tinley Beverages is a Toronto-based company offering a variety of cannabis-infused beverage products. The Company produces its products in Los Angeles and is targeting distribution to key markets along the West Coast. Tinley sells its products at several premium retailers in LA, including Lazy Acres, Sprouts, as well as gas stations. The Company is building a 20,000 square foot manufacturing facility near its home market to further expand production capacity and to carry out R&D. According to estimates from the Brightfield Group, the CBD market could soon become a US$22 billion industry, implying huge upside for Tinley’s stock with large upside potential in the future.
iAnthus Capital Holdings Inc. (CSE:IAN) – $6.35
iAnthus Capital Holdings is a cannabis-focused company operating ~275,000 sq. ft. of cultivation and 39 dispensaries across six U.S. states. The Company’s primary asset, GrowHealthy, operates a 200,000 sq. ft. facility and 30 dispensaries in Florida, out of 13 state cultivation licenses and 35 open dispensaries. On August 15, 2018, the Company announced a US$8.1M investment to expand the Company’s Lake Wales facility. The expansion will increase capacity to 11,689 sq. ft. and includes a 500 sq. ft. mock dispensary used for staff training. On October 18, 2018, the Company announced its acquisition of MPX Bioceutical in a deal worth $835 million.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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