2 Marijuana Stocks To Add To Your October Watchlist Right Now
A good amount of investors are looking at marijuana stocks from a different lens. What this means is a lot has changed in the sector in regards to how most cannabis stocks have been performing. Especially in the last year. Many investors at one point felt pot stocks were unstoppable in 2020 and early 2021. During this time many cannabis companies were able to see consistent upward trading in the market. Yet from 2018-2020 much of the momentum was built from how new and explosive the cannabis sector was.
Meaning between Canada and the United States there were companies that were just starting to become publicly traded. When this happened there was a lot of excitement and some unknowns at the time. But these factors made people more curious about investing in legal cannabis. Due to how unregulated the cannabis industry was along with the focus being more state-level reform.
So when a company would let say open a new dispensary in a new legal state between 2018-and 2020 it would create upward momentum. This momentum would also resonate among other marijuana stocks as well. The reason was people felt if one company had a certain type of success that other companies would follow suit. So naturally, it would intrigue investors to look for other marijuana stocks to buy that may break out the same way.
This Is How Cannabis Stocks Are Currently Performing In The Market
Fast forward to right after February 2021 and things have drastically changed. Now the growth of the sector is up but most cannabis stocks are down. This is due to the uncertainty of federal reform and other factors to how the industry is becoming more controlled. Some feel that the sector was climbing way too high and was ultimately going to drop and level off. But there are some who feel once the right catalyst comes into play that the sector will run back to previous highs.
Top Marijuana Stocks To Watch Right Now In 2021
Village Farms International, Inc.
Village Farms International, Inc. together with its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes. As well as bell peppers, and cucumbers in North America. It operates through three segments: Produce Business, Energy Business, and Cannabis and Hemp Business. The company also owns and operates a 7.0-megawatt power plant. This power plant generates and sells electricity to British Columbia Hydro and Power Authority. In addition to producing and supplies cannabis products.
In some of the company’s more recent news Village Farm has made some updates. On September 28th the company announced it has entered an options agreement to acquire 80% of Leli Holland. This made Village Farms one of ten applicants eligible for a Netherlands cannabis production license. What’s amazing about this ordeal it’s expected to be the first legal recreational market in Europe.
Leli is one of the ten applicants selected by lottery to receive a license to legally cultivate and distribute cannabis to retailers. The Option Agreement provides for Village Farms to acquire 80% of Leli’s shares for a total of EUR3,950,000 million. The EUR950,000 is due and payable to Leli’s shareholders upon the exercise of the Option. To which the remainder is due and payable in three installments. Which is as well subject to the achievement of certain project development milestones. The option is exercisable at the sole discretion of Village Farms.
Words From The Company
“We view the Dutch Supply Chain Experiment as a critical step toward the broad legalization of recreational cannabis in Europe, and our majority ownership of Leli as both an opportunity to participate in the first recreational market in Europe and a springboard to becoming as major participant in a broader recreational market in Europe,” said Michael DeGiglio, CEO Village Farms.”
WM Technology, Inc.
WM Technology, Inc. provides SaaS subscription offerings to retailers and brands in the United States and Canadian cannabis markets. The company operates Weedmaps listings marketplace that provides consumers with information regarding cannabis retailers and brands. As well as the strain, pricing, and other information regarding cannabis products; and offers WM Business SaaS solution.
In September the company announced it has acquired a top cannabis CRM & marketing platform Sprout. This is a big move for WM technology this will allow for more growth and efficiency in the company’s performance. As well this further enhances Weedmaps’ marketing solutions for managing and thriving cannabis businesses.
Words From CEO of Sprout And WM Technology, Inc.
“We’re incredibly excited to join WM Technology. We look forward to leveraging the breadth and scale of users, retailers and brands on the Weedmaps marketplace to accelerate the reach of Sprout as part of WM Business,” said Jaret Christopher, Founder and CEO of Sprout.
Chris Beals, CEO and Chairman of WM Technology, Inc. said “This acquisition will allow our clients to better target, reach, acquire and retain customers at scale. I also want to welcome Jaret Christopher, Sprout’s exceptionally talented Founder and CEO, and everyone at Sprout to our team.”