Top 4 Marijuana Stock To Watch This Month
By: Small Cap Reporter
Tags: Stock Market, Stocks, Marijuana, Investing, Cannabis

The first quarter for the cannabis industry has been a bountiful one, while the stock market is also off to its strongest start to the year since ’91. The broad-based S&P 500 (SPY) tacked on 13% for the first quarter, but the Horizons Marijuana Life Sciences ETF, a basket cannabis stocks, grew 54% in the same period.

The North American legal cannabis market generated $12 billion last year, and analysts predict that the market will reach $25.5 billion by 2021, according to a report by Cannabis Business Plan. The growth can be contributed to increased legalization and the increased use of cannabis in medical applications. As the cannabis sector continues to grow, investors continue to place their bets on several cannabis stocks.

ParcelPal Technology Inc. (PTNYF) (PKG) (FSE: PT0), a technology-driven logistics company purposed with connecting consumers to the goods they love within an hour, announced cannabis deliveries with Vancouver-based cannabis brand Kiaro will launch in Saskatchewan on April 15th. The two companies have completed integrations and have been actively marketing the on-demand cannabis delivery service. ParcelPal also has a cannabis distribution agreement inked with adult and medical cannabis company Choom Holdings, Inc. (CHOOF).

President and CEO Kelly Abbott stated,”We are extremely excited to go live with our first partner in the cannabis space, Kiaro. Customers no longer have to wait for upwards of a week to safely receive their product. We are now one step closer to becoming the Uber of Cannabis in Canada. I would like to thank both the ParcelPal and Kiaro team for all the hard work completing this project for our upcoming launch. We will also be rolling out several verticals in the month of April within the city of Saskatoon. We look forward to expanding into additional cities in Saskatchewan and beyond with Kiaro.”

Towards the end of March, ParcelPal announced it had achieved a major milestone of completing 2 Million deliveries. The company will be hosting an investor update conference call on May 17th to review recent progress and stated will be releasing its quarterly financial statements for Q4 FY2018 by April 30, 2019.

Aurora Cannabis Inc. (ACB), a world leading cannabis company, announced an update on the status of Aurora Sun, its latest and largest Sky Class facility, which is currently under construction in Alberta. To support rapidly growing global demand for high-quality medical cannabis, the facility will be expanded to 1.62 million square feet, a 33% increase from its original plans. Aurora predicts that production capacity at Aurora Sun will be more than 230,000 kg of high-quality cannabis annually.

“Aurora Sun represents the next evolution in our Sky Class facility design, delivering massive scale, low cost production, and consistent, high-quality cannabis,” said Terry Booth, CEO. “The increased scale of Aurora Sun reflects our expectations for the long-term growth in global demand, especially the higher margin international medical markets which will be faced with significant supply shortages for the foreseeable future. Sun is also designed with flexibility in mind to enable us to quickly meet changing market demands, particularly as breeding and cultivation technologies evolve and as customer preferences and requirements change.”

Following the announcement of the addition of activist investor Nelson Petlz in March, Aurora most recently hired Carey Squires as Executive Vice President of Corporate Development and Strategy to focus on global growth and partnership strategies and investor development.

Valens GroWorks Corp. (VGWCF) (VGW.CN) is a multi-licensed, provider of cannabis products and services focused on various proprietary extraction methodologies, distillation, cannabinoid isolation and purification. The company recently entered a two-year agreement to provide hemp and cannabis extraction services to The Green Organic Dutchman Holdings Ltd. (TGODF). The agreement details, TGOD will supply Valens with an annual minimum of 30,000 kilograms of cannabis and hemp biomass for Valens to process into quality resins and distillates for TGOD to then use to produce oils, sprays, edibles, beverages and topical products.

“We are excited to work with TGOD, Canada’s premier certified organic producer,” said Tyler Robson, CEO of Valens GroWorks. “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.”

This followed the news of Valens inking a two-year deal to provide cannabis and hemp extraction services to Tilray Canada Ltd. (TLRY) to receive and process the cannabis and hemp on a fee for service basis into crude, distillate or other cannabis oil derivatives prior to shipping the desired product back to Tilray for final processing and sale.

New Age Beverages (NBEV), a health-focused organic and natural beverage company, announced it has expanded its Marley brand’s partnership with Walmart (WMT). The deal represents the its first national account penetration and shipments of Marley brand coffee and relaxation drinks have begun to Walmart distribution centers across the US.

Craig Thibodeau, VP of Key Accounts commented, “This is such a great accomplishment for New Age to gain its first national distribution, and to do so with the world’s largest retailer in Walmart. This is just the first initiative that we expect to do with them on the Marley brand and other New Age products on which we are in active discussions. We know Walmart is equally as committed as New Age to providing healthier products for their customers, and we expect to make the full portfolio of New Age’s better-for-you products available as we expand the relationship.”

New Age recently has filed a registration statement with the SEC to issue common shares, preferred shares, warrants, and units totaling $200 million. The company intends to use the proceeds for general corporate purposes, which may include acquisitions and working capital, according to the company.