How To Begin Investing In Marijuana

With the legalization of marijuana in specific areas of Canada and the United States, you may be interested in investing in this high-growth industry. To understand the best way to do this, you need to know about the different types of marijuana stocks and what you should look for when you’re investing.

Understanding the Different Types of Marijuana Products

Over 30 US states have legalized marijuana for medical use, and in some states, it can be sold recreationally. If a person wants to purchase medical marijuana, they’ll need a prescription from a healthcare provider, which is usually for symptoms such as depression, anxiety and stress.

Medical marijuana is available in different forms that can be smoked, vaped or consumed via beverages or edible products. Cannabidiol (CBD) is a common product that comes from the cannabis plant. It doesn’t contain delta-9 tetrahydrocannabinol (THC), which has psychoactive properties. These products are usually used for health benefits.

Marijuana products that contain THC are typically used by recreational users who want to feel the effects of psychoactive properties. They tend to smoke cannabis flowers, vape concentrates or consume edibles.

Different Types of Marijuana Stocks

When you’re looking for the best marijuana stock to invest in, it’s important to understand the different types available, which include the following:

Cannabis Retailers and Growers: Companies involved in this category are involved in cultivating cannabis, which is usually done in greenhouses or large indoor facilities. They will harvest their crops and distribute end products in the form of concentrates, flowers or edibles. These companies or other independent companies can also choose to operate retail stores, which sell recreational and/or medical cannabis.

Ancillary Services and Products: It takes specific equipment to grow marijuana. The companies in this category supply lighting and hydroponic systems to marijuana growers. Large fertilizer companies can also be included in this niche.

Biotechs Focusing on Cannabis: Some biotech companies focus primarily on creating cannabinoid drugs.

Basics of Cannabis Investing for Beginners

When you invest in marijuana stocks, it’s important to apply the same type of basics that you would for any stock investment. You may want to check out the management team of a company and examine their track record. It’s best to find companies that have a strategy put in place for growth, which might include an organic plan or expansion via acquisitions.

You’ll also want to analyze competition when you’re looking for the best marijuana stock to invest in. Try and find a company that differentiates itself. You can do this by seeing if a company is working with top partners or producing a profit. The marijuana industry is still in its infancy, which means you will probably find companies that aren’t generating profits. This can be a good plan if they are focusing on growing their operations.

It’s also helpful to learn if a company is focused on targeting specific geographic markets. Each geographic market will present a unique opportunity, which can be highly beneficial to a company if they are the leader in that area.

Benefits of Investing in Marijuana

When you’re investing in the stock market, you can choose to purchase stocks and industries that are riskier than others. Marijuana stocks provide this opportunity. They can be more volatile than a lower risk energy stock or stocks related to companies selling consumer products such as household detergents. The benefit of investing in marijuana stocks becomes apparent when you look at the rewards and profits they can create.

Like any investment, you need to look at your risk profile and decide how much you want to invest in your first position. If your risk profile allows you to invest 30 percent in the category of higher-risk stocks, you may want to include one or more marijuana stocks in that part of your portfolio. To do this, it’s usually best to begin with a small position. If you recognize an uptrend in the stock or stocks you’ve invested in, you can always add more shares in the future.

Now that you have learned more about the basics of the marijuana industry and how to find different marijuana stocks, it’s time to do some research and decide on the type of company you’d like to invest in. This will help you pinpoint your decision when you are ready to make a purchase.

Tips For Investing In Marijuana Stocks

The hype for the marijuana is not dying soon. A lot of People are seeking to invest in the marijuana industry. The companies in the marijuana industry that you can invest stocks in are the marijuana growers companies in large scale using greenhouses and other indoors growing methods, the companies that provide ancillary products and services such as the greenhouse lighting, hydroponics or packing. Another company you can invest in stocks are the biotech companies that are geared towards cannabis. The cannabis industry is growing and investing in its shares is worthwhile. The following are ways you can invest in marijuana stocks:

1. Know the Company You Want To Invest In

As you can see, there are three types of marijuana companies you can invest in. Your financial goals and personal interests in marijuana should guide you in picking the right company to invest the stocks in. Research about the company you want to invest in. There is a lot of information online. Make an informed decision before you invest.

2. Know the Possible Risks

Investing is stocks can be highly profitable. However, the chances of risks are very high too. Investing in marijuana stocks has even higher risks. The possible risks that can greatly influence the marijuana stocks negatively are the political and legal issues, imbalances in the demand and supply of marijuana and the over the counter stocks.

piggybank3. The Amount You Want To Invest

How much money are you willing to invest in marijuana? Stocks are volatile and unpredictable. So do not invest too much of your money. Invest only in what you are willing to lose. If you are not an aggressive investor, do not invest too much of money on marijuana stocks. If you want to learn how to invest in highly risky stocks such as the marijuana stocks, join the forums such as the Investors Hangout. There is so much to learn in these stock investors forums.

4. Watch Out for the Changes in the Industry

Before you invest in this industry, learn and watch out for the market trends. This is a fairly new industry and the dynamics keeps on changing every now and then. You need to consider and predict what could happen in the near future before you invest in the marijuana stocks. You need to keep watch on the industry very closely.

5. Know the Different Types of Marijuana Products

Marijuana is used for two major purposes, the Medical and Recreational marijuana. One of the major reasons for the legalization and the continued legalization of marijuana is the medical properties. There are a few countries that have legalized it for recreational use. More than 30 countries in the USA have legalized the use of marijuana for medical use. This information should guide you towards the direction you want to take in investing in the marijuana products.

The marijuana stocks are volatile and unpredictable, just like any other type of stocks. However, they show promise of a good future. The industry is a bit young and fast growing. Start investing now in this industry.

MJ – The ETFMG Alternative Harvest ETF Surpasses $1 Billion In Assets

NEW JERSEY: ETF Managers Group (ETFMG) announced that the ETFMG Alternative Harvest ETF, better known as MJ, has officially joined the “billion dollar club.”  After less than 14 months of trading on the NYSE the Fund achieved an impressive milestone by passing $1 billion in assets under management on February 4, 2019.

MJ is now the largest cannabis ETF in the world and remains the first and only U.S. listed ETF to target the global cannabis industry directly. The Fund provides investors unrivaled exposure to this constantly evolving sector which continues to see medicinal advancements, regulatory changes and M&A activity, highlighting the long-term, outsized investment opportunity in the cannabis industry.

Despite elevated market volatility in 2018, MJ managed to retain and grow assets by 9,600% within its first year. After a nearly 9-million-dollar dividend distribution (equivalent to a 1.36% yield per share)* for the quarter, investors that held MJ throughout Q4 of 2018 were essentially paid to own the fund as the income exceeded the total expenses of owning it.

Sam Masucci, CEO and Founder of ETFMG said “When we launched MJ I talked about how at ETFMG we look to impact the ETF industry evolution with products that innovate and provide investors exposure to new markets, in fact 75% of our products are first to market. MJ is not only proof of our ability but also as to the power of the ETF wrapper and that thematic products can have a place in the average investor’s portfolio while generating significant returns.” Sam continued by saying “…the tremendous success seen in the global cannabis industry shows no signs of slowing down and we are proud to be a part of it with MJ.”

As of Tuesday, February 5, 2019 MJ is up 46.6% YTD due in large part to the performance of three of the largest holdings within the fund.

  • Cronos Group (CRON has a positive 121% return this year, in large part due to the M&A news involving tobacco giant Altria (MO).
  • Canopy Growth (CGC), one of the largest ($16b in mkt cap) innovators in the cannabis space, up 85%.
  • Cannabis conglomerate Aurora Cannabis (ACB), with a return of 62% since 12/31/18.

Tilray Launches Initial Public Offering

CANADA: Tilray, a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, announced that it has launched an initial public offering of its Class 2 common stock pursuant to a registration statement on Form S-1 previously filed with the United States Securities and Exchange Commission. Tilray has applied to list its common stock on the Nasdaq Global Select Market under the ticker symbol “TLRY”.

 

Agreement represents major milestone recognizing medical cannabis as a conventional medicine for patients in need

Tilray is offering 9,000,000 shares of Class 2 common stock at an initial price to the public between US$14.00 and US$16.00 per share (approximately CAD$18.40 to CAD$21.00 per share1). Tilray intends to grant the underwriters a 30-day over-allotment option to purchase up to 1,350,000 additional shares.

In order to qualify the offering of securities in Canada and to ensure that purchasers in Canada are not subject to restrictions on resale, Tilray has also filed a preliminary prospectus for a proposed IPO in Canada with the securities regulatory authorities in each province of Canada other than the Province of Quebec. Tilray does not intend to list on any stock exchange in Canada.

Cowen and BMO Capital Markets are acting jointly as book-runners for the proposed IPO. Cowen is acting as the sole book-running manager for the IPO in the United States, and BMO Capital Markets is acting as the sole book-running manager for the IPO in Canada. Eight Capital is acting as lead manager for the IPO in Canada. In the United States, Roth Capital Partners is acting as lead manager and Northland Capital Markets is acting as a co-manager for the IPO.

The offering will be made only by means of a prospectus. Copies of the U.S. preliminary prospectus may be obtained from the SEC’s website or from Cowen by contacting Cowen c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, NY, 11717, Attn: Prospectus Department. Phone: (631) 274-2806. Copies of the Canadian preliminary prospectus may be obtained from www.sedar.com or from BMO Capital Markets by contacting BMO Capital Markets, Brampton Distribution Centre c/o The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 or by telephone at (905) 791-3151 Ext 4312 or by email at torbramwarehouse@datagroup.ca.

A registration statement on Form S-1 relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

1Based approximately on the Bank of Canada daily exchange rate on July 5, 2018 of C$1.3129 = US$1.00

Small Cannabis Companies Capitalize on Market Growth

NEW YORK: The Cannabis Sector has been heating up for a number of years now. In the past few years, there has been a huge surge in new companies stepping in because of user growth. According to a Gallup poll on August 8th, 2016, one in eight U.S. adults say they smoke marijuana. The report elaborates even further that thirteen percent of U.S. adults currently smoke marijuana, which is roughly up almost double that from 3 years ago. This indication is why small Cannabis companies are trying to capitalize on the sector growth. Medical Marijuana, Inc. (OTC: MJNA), Terra Tech Corp. (OTCQX: TRTC), General Cannabis Corp. (OTCQB: CANN), South American Gold Corp. (OTC: SAGD),CV Sciences, Inc. (OTCQB: CVSI)

Many states along with the current ones that are now legal for medical or recreational use of marijuana have also grown in the past few years. As a result, lots of entrepreneurs and business savvy companies have been trying to capitalize on the market growth.

Small companies are looking to make a name for themselves in this space. The current ones in the public equity markets that have been tremendous attention grabbers are Medical Marijuana, Inc. (OTC: MJNA), their mission is to be the premier cannabis and hemp industry innovators, leveraging their team of professionals to source, evaluate and purchase value-added companies and products, while allowing them to keep their integrity and entrepreneurial spirit. Terra Tech Corp. (OTC: TRTC), operates through multiple subsidiary businesses, including: Blüm, IVXX Inc., Edible Gardens, MediFarm, LLC and GrowOp Technology. Blüm’s retail medical cannabis facilities focus on providing the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions.

Golden Leaf Holdings Announces Q2 2016 and June 2016 Preliminary Results For Oregon And Washington State Brands

OREGON: Golden Leaf Holdings Ltd. (“GLH” or the “Company”) (CSE: GLH), a leading cannabis oil solutions company built around recognized brands, today announced preliminary revenue results for Q2 2016 and June 2016 for the respective brands of the company in Oregon and strategic partner BMF Washington.

GLH Oregon Revenue Overview

Preliminary results show that GLH generated US$3,011,000 in estimated and unaudited revenue for Q2 2016 as compared to unaudited revenue of US$2,476,688 for Q1 2016, representing a quarter over quarter increase of 21.5%.

The Company posted preliminary results for June 2016 showing UD$923,000 in estimated and unaudited revenue as compared to US$1,067,000 (updated and revised from previously published number) in May 2016, representing a month over month decrease of 13.5%. GLH sold all of the products that it produced in the month of June.

GLH experienced lower than anticipated revenue in June 2016 due to a variety of unexpected challenges. The Company is developing plans to address these variables as shown below:

Issue Proactive Response
Production obstacles, including cash constraints that impacted trim and flower purchases, trim quality issues and product testing delays from 3rd party vendors made it more challenging to source material inputs and produce product in a timely manner. GLH is leveraging cash from current convertible debenture funding to fulfill raw material requirements. The Company has developed a strategic trim supply agreement program focused on contracting with selected farmers to obtain low cost supply of high quality flower and trim with specific strain and genetic characteristics. GLH purchased new testing equipment to ensure the quality of trim and efficiency of testing timelines. The Company is building relationships with testing vendors to effectively manage testing bottlenecks.
The Oregon cannabis market saw slower than expected recreational consumer adoption of oils and extracts. The concept of using a vape pen for delivery and usage of marijuana is still relatively new for the average recreational user. The Company is working with dispensaries to provide merchandising tools that educate the consumer on the benefits of cannabis oil and new delivery systems.
The retail buying process at medical marijuana dispensaries, including effective purchasing and supply chain management is still evolving. Not all dispensaries stocked the appropriate inventory to meet new recreational consumer demand. Dispensaries are becoming more familiar with customers buying behavior, but room for improvement exists with raising the level of sophistication as it relates to inventory management and regular purchasing patterns. GLH is working closely with dispensary customers to help manage stock levels and ordering cycles.

Don Robinson, Chief Executive Officer of GLH, commented, “While June 2016 Oregon sales results were lower than expected, we were encouraged by the strong sell through of all available inventory produced. We were also pleased with the positive consumer response to the relaunch of the Golden brand and the new product launch of Private Stash. Our sales and marketing team worked with dispensaries across the state to not only introduce new products but new merchandising tools that elevated the consumers’ shopping experience and increased brand awareness.”

BMF Washington Revenue Overview

Preliminary results show that BMF generated US$1,370,445 in estimated and unaudited revenue for Q2 2016 as compared to unaudited revenue of US$904,359 for Q1 2016, representing a quarter over quarter increase of 51.5%BMF’s June 2016 unaudited and estimated revenue in Washington state was US$537,880, a month over month increase of 13% from May 2016 of US$475,457.