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These opportunities do not come around every day… be one of the first to learn about five investments that are flying under the radar!
Ten years from now, we will be able to look back at what happened in the cannabis industry during 2016 and understand the significance of this time period in the history of cannabis.
From the world’s first successful Stage 3 FDA clinical trial on GW Pharma’s cannabis-derived treatment to the passage of legislation to legalize recreational cannabis in California, this year will always be one to remember.
The landscape of the cannabis industry has changed over the last two years and this has vaulted the industry into almost every mainstream media channel. Although this exposure is fantastic, it has also made it more challenging for investors to find investments that may be flying under the radar.
Today, we want to highlight five of such companies (public and private).
Top Private Canadian Licensed Cannabis Producer to Watch
In late November, Canadian licensed medical cannabis producer the Green Organic Dutchman announced plans for an equity financing to raise a minimum of $10,000,000. The company saw remarkably high interest from the market and its order book for this proposed offering was more than two-times oversubscribed in less than two days. The Green Organic Dutchman is a private company that intends to go public in the back half of 2017.
The Green Organic Dutchman produces farm grown pharmaceutical grade organic cannabis. The company grows premium grade organic medical cannabis in small batches through all natural craft growing techniques and organic principles.
The Green Organic is uniquely positioned within Canada’s rapidly growing medical and recreational cannabis industry. We are favorable on the company for the following reasons: 1) It produces a premium organic product which will see high demand from consumers, 2) The equity financing was oversubscribed and generated incredible market interest, 3) The company received its cultivation license in August and continues to execute on its business plan, 4) It is led by a management team that has a proven record of success, and 5) Its current valuation is attractive when compared to its peers.
Green Organic is able to differentiate itself from the competition through its high-quality organic product that sells for a higher price and has better profit margins. The company is led by a management team that has a proven track record of success with licensed Canadian medical cannabis producers such as OrganiGram and Emblem Corp.
Market Responds Favorably to Cannabis Biotech Acquisition
Vinergy Resources (VIN.CN) has been a stock to watch following a very bullish reaction from the market after the company announced the acquisition of MJ Biopharma in an all-stock deal on December 14th.
MJ Biopharma is a private cannabis technology company based out of British Columbia that is currently focused on manufacturing breath strips, time release capsules, extract oils, food products such as infused juices, teas, coffee and extract drinks, as well as the development of pharmaceutical grade delivery systems.
MJ Biopharma is also focused on licensing and partnering on the development of technologies and products for the medical and recreational cannabis market in Canada and abroad.
At the time of this announcement, Vinergy also announced a non-brokered private placement offering of up to 10,000,000 units at $0.20 per unit. Each unit will consist of one common share and one-half of one transferable common share purchase warrant. The warrant has a 12-month term and is exercisable into one additional share at $0.40.
Vinergy’s market sentiment has improved significantly following the acquisition and investors were able to acquire stock at a more than 50% discount to the current price through the private placement. The offering generated incredible interest and is very oversubscribed. Investors should keep an eye on Vinergy as we expect to see the company build off of this momentum during 2017.
Dual Leverage to the Canadian Cannabis and Hemp Industry
Although licensed cannabis producers have taken most of the headlines this year, there are more places to invest and other attractive sub-industries within the Canadian cannabis industry. LiveWell is a leading Canadian cannabis and functional food company. The company’s three divisions are fresh produce (Sole Produce), food manufacturing (Delisse), industrial hemp (O-Hemp), and medicinal cannabis (Artiva).
We are favorable on the company’s focus on the North American industrial hemp industry through its O-Hemp division. We expect to see the industry grow at incredible rates and by 2020, the Hemp Business Journal expects the United States CBD market to increase to a $2.1 billion market with $450 million of those sales coming from hemp-based sources.
O-HEMP is a wholly owned subsidiary of LiveWell that was created to capitalize on demand for hemp-based foods within the retail grocery market, specifically in the health food space. The company’s method for success is easy, efficient and it works.
The benefits associated with hemp are endless. A number of products which are used by people every day can be created from hemp. These include paper, clothing, building materials, fuel, and nutrition. O-HEMP creates new products by simply adding hemp as a new ingredient to the food items its manufacturing partners already produce.
We believe that the industrial hemp and medical cannabis industries are in the first inning of a multi-decade growth cycle and are favorable on LiveWell’s leverage to these rapid growth industries through its wholly-owned subsidiaries.
Reach out to us at support@mushroomstocks.com to learn more about investment opportunities in LiveWell.
2017 to be a Banner Year for Leading Cannabis Consultant
The United States cannabis revolution continues to expand. Medical cannabis is now legal in 28 states while recreational cannabis is legal in eight states and in the District of Columbia. This revolution is not just taking place in the United States. We are seeing cannabis reform taking place all around the world. During the last two years, Brazil, Mexico, Paraguay, Puerto Rico, Canada, Uruguay, Jamaica, Portugal, and the Netherlands have taken steps to legalize or decriminalize cannabis.
As deregulation continues to occur, new opportunities emerge for companies within this rapidly growing industry. One company that has capitalized on these opportunities is Medicine Man Technologies (MDCL), a full-service cannabis consulting firm.
Earlier this month, Medicine Man said it will end the year with at least 23 new clients in eight states and more than half of these clients were signed during the current quarter. We are favorable on this explosive growth and believe it is a testament to the management team’s track record. Since inception, the company has assisted more than 45 clients across 14 states to secure licenses, to avoid mistakes, and to be able to consult with an experienced team.
We are favorable on Medicine Man Tech and believe it is one of the highest quality OTC traded cannabis companies for the following reasons: 1) It is led by a management team that has a proven track record of success for its clients in 14 different states, 2) The company continues to increase its market share while also improving its geographic diversity, 3) It has a strong parent company that owns and operates an iconic and one of the best-known dispensaries in Colorado, and 4) The valuation has improved following a 40% decline since September 1st.
Significantly Underappreciated and Undervalued Health Care Disruptor
Reliq Health Technologies (RHT: TSX Venture) (RQHTF: OTC) is a healthcare technology company that specializes in developing innovative secure mobile software solutions for the multi-billion-dollar community care market.
Reliq offers a state-of-the-art platform that allows patients to receive high-quality care at home, which leads to improving health outcomes, a better quality of life for patients and a lower cost of care.
We are favorable on Reliq due to its ability to disrupt a multi-billion-dollar market, its strong management team that continues to execute on its initiatives, its four pilot programs, and its attractive valuation.
Reliq has a very small market capitalization, but with pilots in progress with multiple large hospital networks in North America and Europe, it is poised for tremendous growth and associated increase in market cap. For this reason, we believe Reliq is significantly undervalued and underappreciated by Wall Street.
If Reliq is able to close at least one of the pilot programs, the company will be positioned for significant growth. Reliq currently has four pilot programs and this is very attractive since we expect to see them secure deals from at least two of these clients.
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Important Investor Disclosures
Disclosure. Compensated Affiliate. This report was authored by and is property of StoneBridge Partners LLC. All information and data relied upon in drafting this report is publicly available. The author believes and considers its sources to be reliable, but does not guarantee the accuracy or completeness of any information contained in this report. Any and all information, data, analyses and opinions are provided for informational purposes only and is not intended, in any manner, as investment advice. Any projections or other information generated by StoneBridge Partners LLC regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. None of the material contained in this report is intended as a solution or offer to sell or purchase a specific stock or any other investment. This report is not directed to, or intended for distribution or use by, any person or entity that is a citizen, resident or located in any municipality, state, country or other jurisdiction where the distribution, publication, availability, or use of this report is contrary to any governing law or regulation. The securities discussed in this report may not be eligible for purchase and/or sale in certain jurisdictions or by particular individuals. It is important that you check any and all governing laws and/or regulations that may be applicable in your jurisdiction. Investing in securities of issuers organized outside of the United States, including ADRs, entail certain risks. The securities of non-United States issuers may not be registered with, nor be subject to the reporting requirements of the United States Securities and Exchange Commission. Please contact a Financial Advisor for professional advice regarding any and all securities investments. This report is intended for informational purposes only. StoneBridge Partners LLC’s officers, directors, employees, affiliates, or subsidiaries may have positions in securities covered by StoneBridge Partners LLC. StoneBridge Partners LLC receives compensation from the company and/or has a position in the securities mentioned in this report
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