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Opportunity of the Decade for Canada's Cannabis Companies

Wednesday, July 19, 2017 Drug News
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OilPrice.com News Commentary

LONDON, July 19, 2017 /PRNewswire/ --
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This little-known marijuana company is the only real entry point into the multi-billion-dollar Canadian pot market, and it's also the first marijuana company to pay a dividend to its shareholders. Active companies in the market include: Innovative Industrial Properties, Inc. (NYSE:IIPR), INSYS Therapeutics, Inc. (NASDAQ:INSY), GW Pharmaceuticals plc (NASDAQ:GWPH), OrganiGram Holdings Inc. (TSX-V: OGI.V), Emerald Health Therapeutics, Inc. (TSX-V: EMH.V)
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Pot stocks were already skyrocketing-in some cases beyond 1700% - in anticipation that the Canadian government would put legislation on the table to legalize marijuana for recreational use in April. That's already happened, and now stocks are going wild because it should all be legal by July 1st, 2018. This is the making of a multi-billion-dollar market overnight. And this company could be the way in.

Meet Invictus MD (IMH.V; IVITF)-a small-cap that has redefined savvy in this sector and will be walking with the jolly green giants by this time next year-when high valuations will slam doors shut and only billionaires will emerge.

The Fast-track to Profits-The Lucrative Pot Pre-approval  

In what will prove to be the biggest multi-decade opportunity for investors, Invictus has already won pre-approval by the Canadian health authority to produce 15 strains of marijuana. And this is only one of many firsts for this small-cap.

Right out of the gate, Invictus MD, owner of two of only 50 licenses, has demonstrated that it will lead the way. And it's cashed up and already generating dividends-a feat unheard of in the pot industry.

That's why it's called 'Canada's Cannabis Company' -it's already cemented market share for medical marijuana use, and now it's one of the first in and ready to fill the supply gap for a massive recreational push.  

It's also the first licensed medical marijuana company to pay a dividend to shareholders, and with its strains reaching into everything from pain management, cancer, epilepsy, anxiety and - most lucratively of all-recreation, the sky is the limit here.

Supply Deficit Looming-This is Bigger Than Beer 

We're now just shy of a year away from the start date of legal recreational use, and there are already predictions of a looming supply shortage.

The industry is scrambling to add greater capacity once these legal barriers are tossed aside.  

Deloitte estimates this industry could be worth a whopping $22.6 billion annually. That's more than the combined sales of beer, wine and spirits.

We're going to be playing some serious catch-up, which is a producer's dream.

  • Legalizing recreational marijuana could result in demand of about 400,000 kilograms of cannabis in its first full year in Canada, according to Canaccord Genuity analysts. (And that's just for recreational use.)
  • Demand for medical cannabis is also growing at a significant pace, and the total combined demand for the first year could be 575,000 kilograms.
  • Arcview Market Research of San-Francisco predicts that legal marijuana sales will reach close to $22 billion by 2021-up from nearly $7 billion last year. That's an annual growth rate of 26 percent, and it's in line with Deloitte's own estimations.
  • In Canada alone, Canaccord Genuity predicts that the recreational marijuana industry could reach $6 billion in sales by 2021.
That's what happens when you end 'prohibition' for a market that is already huge-it's just hiding under the table. But this will blow away the billion-dollar industry that was reborn the moment alcohol prohibition ended on December 5, 1933.

Investors get it. That's why shares of medical marijuana producers more than tripled last year-just at the anticipation, and now that it is set to become legal, there is no telling what could happen.

• AXIM Biotechnologies: exploded 1,720 percent • Corbus Pharmaceuticals was up 431 percent • Aphria grew 381 percent • Aurora Cannabis was up 299 percent • Canopy Growth Corp. up 259 percent • Medical Marijuana  up 254 percent • GW Pharmaceuticals  was up 64 percent

In early April, Canada launched its first marijuana exchange-traded fund (ETF), giving investors diverse exposure to this tantalizing sector. The Horizons Medical Marijuana Life Sciences ETF launched on the 4th of April on the Toronto Stock Exchange with 11 Canadian-listed stocks and four U.S.-listed stocks.

On 23 June, Invictus was included in the ETF.

Way Ahead of the Game, with a Massive Pot Pipeline 

Invictus MD (IMH.V; IVITF) has multiple projects in its Canadian investment pipeline-all of them bolstered by some extremely savvy acquisitions. And they're not afraid of picks and shovels; they're all about hard work, if it's smart.

Prior to October, when it entered the license producer market, Invictus MD was busy acquiring all the 'picks and shovels' of the cannabis space. Invictus MD has made one smart move after another, and it's always the 'pick and shovel' guys who have real longevity. First, they acquired a fertilizer company that was cash-flow positive, and then they sold one of its lighting divisions for $5 million, having paid only $900,000 for it, less than a year before. That's how they managed their first shareholder dividend.

They've been targeting small- and mid-size companies with significant growth potential and direct their strategies towards profitability. And this business savvy gives them everything they need to produce cheaply and to corner this market-but still maintain a valuation far below their peers. That's why this is a very real entry point into this market for potential outsized gains.

The pipeline is impressive:

  • 33% ownership in AB Laboratories Inc., which received its cultivation license in the third quarter of last year. A sales license is expected any day.
  • The AB facility has a capacity for 1,000 kilograms, with active expansion plans underway.
  • Invictus just closed its acquisition of 100 acres with AB Ventures Inc., and is targeting production here of 25,000 kilograms by 2020.
  • In Alberta, Invictus owns 100% of Acreage Pharms, which has a license to cultivate under ACMPR and has a purpose built 7,000 square foot facility and a 30,000-square-foot phase 2 expansion plan with capital to expand an additional 75,000 square feet.
So, what we're looking at here is a wildly undervalued company that has an amazing set of assets and a pipeline to produce which is poised to explode onto a recreational market that is already bursting at the seams.

They Actually Pay Dividends. Need We Say More? 

No one expects pot producers to pay dividends-yet. Its still early days, even with medical marijuana. Even so, Invictus has already rewarded its shareholders, to everyone's surprise. It was a Christmas bonus no one expected, and it speaks volumes about this company and its management.

In the words of Invictus Chairman and CEO, Dan Kriznic, "It made sense to give back to those who supported us." Kriznic has been rated one of Business in Vancouver's 'Top 40 under 40', and he's put Invictus on the fast track to the market.

This CEO has turned $10-million companies into $150-million annual revenue generators. They've got a license to grow in more ways than one, and while they might not be a 'green giant' just yet, their undervaluation suggests they could be.

Why Invictus? 

This company's not only rewarding shareholders early, but it's not afraid of hard work, and it has prime real estate for a cash crop that's going to keep growing.

  • The company has a funded production capacity of about 18,000 kilograms. Compared to its peers, this suggests significant undervaluation.
  • And not only are its strains pre-approved by the health authorities, but they will reach into every corner of the market. It's a marijuana octopus that has left no stone unturned.
  • Invictus MD's market cap to funded capacity is about 5 times the industry standard.
This is the only door to walk through to the land of marijuana profits, but it won't be open much longer. You can find out more on Invictus MD at the following links (IMH.V; IVITF) More companies worth watching: - GW Pharmaceuticals (NASDAQ:GWPH): GW is one of the bigger pharmaceutical companies in the medical marijuana space. The company focuses on biotech, finding cures to rare diseases, which prove to be both promising for investors and life changing for patients. Its flagship product is GW's Epidiolex, a CBD based extract used to treat a number of disorders. FDA approval of this drug could be a huge boon for the medical marijuana industry.

- Insys Therapeutics (NASDAQ:INSY): While Insys isn't your average pot stock, it is generally known as a 'marijuana stock'. Insys' main product is a sublingual pain medication known as Subsys. However, using the same proprietary sublingual (yes, that's under the tongue) spray technology and their advanced knowledge of synthetic cannabinoids, the company is a first mover in the medical marijuana industry.

- Innovative Industrial Properties Inc. (NYSE:IIPR): Engaged in the acquisition, ownership and management of specialized industrial properties for medical-use cannabis facilities, Innovative Industrial Properties Inc. is one of the few ways to get exposure to the marijuana industry on the NYSE. As legalization continues, the demand for these specialist properties looks set to spike, along with this stock price.

- OrganiGram Holdings. (TSX-V: OGI.V): Organigram Inc. is a licensed medical marijuana producer in Canada, while it managed to maintain its production license this year, the company saw its stock price fall somewhat year-to-date, but we see strong upside for this stock as the changing Canadian cannabis legislation could give a massive boost to the market.

- Emerald Health Therapeutics (TSX-V: EMH.V): Botanicals, a wholly owned subsidiary of Emerald, is authorized to cultivate and sell both dried medical cannabis flowers and medical cannabis oils in Canada. Botanicals currently operates an indoor cultivation facility in Victoria, British Columbia, and plans to construct a much bigger growing project in Vancouver. Emerald can be considered a serious growth stock as Canada's marijuana legislation changes. By Joao Peixe Legal Disclaimer/Disclosure from OilPrice.com: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Oilprice.com only and are subject to change without notice. Oilprice.com assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report. All content contained herein is subject to the terms and conditions set forth in the original article posted on Oilprice.com and subject to the terms and conditions therein.

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