Michigan is the most recent state in the US to have legalized marijuana, giving the cannabis market a huge boost. The United States cannabis market is anticipated to grow to $19.48 billion by 2024. All reports seem to indicate that this growth is here to stay for a long time, especially as more states legalize cannabis stocks.
Fourth Quarter 2018 Cannabis Stocks and How They Did
Troy Dayton, CEO of the Arc view Group, said: “The end of marijuana prohibition is in sight and what that means for this market cannot be overstated. There are billions of dollars in institutional capital chomping at the bit to take advantage of this shift, but so far haven’t found a major way in. This leaves a limited window for businesses to get a foothold and build value for liquidity events that might come sooner than any of us thought possible just a few months ago.”
While the market continues to boom, here are five marijuana stocks to watch in the fourth quarter.
Cronos Group (CRON)
Cronos announced that it entered into a sponsored research agreement with Technion Research and Development Foundation of the Technion – Israel Institute of Technology. This research will dive into the uses of cannabinoids and their role in regulating skin health and skin disorders with a focus on acne, psoriasis, and skin repair.
“We believe that the potential applications of cannabinoids to regulate skin health and treat skin disorders are vast, and we are excited to begin exploring these applications through our partnership with Teknion,” said Mike Orenstein, Chief Executive Officer of Croons Group. “Using rigorous data to develop efficacious topical and transversal formulations will be key to creating differentiated products that provide quality treatments to our consumers and strengthen our brand portfolio.”
Integrated Cannabis Company (ICNAF) (ICAN)
Integrated Cannabis Company has focused on the product side of the cannabis industry in the past. Its current portfolio includes CBD and THC oral sprays, but it is going to expand its offerings. The company recently announced they will license Cannabidiol (CBD) formulated gummies. These gummies will be distributed through its contract manufacturer, Titration Technologies, in Phoenix, Arizona.
Integrated Cannabis recently completed their Tetrahydrocannabinol (THC)-infused spray product that will be manufactured in Colorado. The THC spray has higher bioavailability and faster uptake versus capsules or powder. As the company continues to fine-tune its flavor profiles, it is expected that the popularity of the product will grow.
Leaf buyer Technologies (LBUY)
BUY announced that its quarterly sales rose almost 70% in the quarter ending September 30, 2018. According to the announcement, they also believe that this growth will continue well into 2019 as they increase their sales and marketing resources. The company also recently acquired Greenlight Technologies, a California- based application development business. This acquisition will cause it’s market share to increase globally. Leaf buyer has plans to provide a suite of services to Surterra Wellness, which is one of the leading dispensary chains in Florida.
“Our record growth this quarter is a function of our bolstered national expansion and the higher dollar value we are receiving for our bundled packages,” said Mark Breen, COO of Leaf buyer. “We are seeing a high demand for our loyalty services as well as our customer acquisition platform. We expect to see a significant increase in revenue coming from loyalty and order ahead products from our cannabis dispensary customers.”
Apria Inc. (APHA)
Apria Inc. announced its acquisition of CC Parma GmbH, a leading distributor of pharmaceutical products to more than 13,000 pharmacies in Germany. Once this
The transaction is finalized; Apria Inc. will see a huge boost in their end-to-end medical cannabis operations and infrastructure in Germany, helping to solidify their international expansion. Their three-pronged approach to continue their presence in Germany includes demand, supply, and distribution.
“This acquisition strengthens our foothold in Germany, one of the most highly sought-after medical cannabis markets in the world,” said Vic Neufeld, CEO of Apria. “CC Parma is cash-flow positive and has significant experience with regulatory requirements and international logistics. It will be a strong addition to Apria’s presence in Germany, providing deeper access to the important pharmacist channel and advancing our ambitious global growth strategy.”
Apria also acquired a 25.1% interests in Berlin-based Schoenberg Hospital. This will grant Apria access not only to doctors but also patients to help support the education of the benefits of medical cannabinoids. This acquisition is the first step in its plan to build and operate pain treatment centers throughout Germany.
Madmen Enterprises Inc. (MMEN.CN)
Madmen have had a rough third quarter and this is expected to continue as their price shares have dropped. The company also announced mid-November that its chief financial officer will be resigning.
Madmen Chief Executive Adam Bierman said the change in the financing was related to a “global market selloff” and declined to comment on the CFO’s departure.
“Shortly after the announcement, the global market experienced a significant selloff, and as we ended last week the investors that bought that deal would have been underwater,” Bierman said. Jim Miller, as interim CFO will be taking over as interim CFO.
However, earlier in October, Madmen announced it will buy PharmaCann for $682 million, which is the biggest transaction in the history of the US cannabis industry. This will position Madmen as the largest marijuana business in the US, with its business expanding to 12 states, including Illinois, Maryland, Massachusetts, Michigan, Ohio, Pennsylvania, and Virginia. It is expected that their projected addressable market will increase to $40 billion by 2030.