Over the next three weeks, Canada will unleash an opportunity cannabis investors can’t ignore.
In fact, on October 17, 2019, they’ll legalize edibles, beverages, and topicals just a year after legalizing dried cannabis flower, oils, and sprays.
Granted, the selling of those products won’t be permitted until December 2019. But, according to Deloitte, the market holds multi-billion-dollar spending potential, especially when you consider that up to 60% of Canadians would use cannabis edible products.
Analysts at Deloitte also believe Cannabis 2.0 could create a $2.7 billion opportunity, adding that the legalization of edibles containing cannabis and cannabis concentrates will “create new product mixes that will reach consumers who may have been reluctant to try traditional cannabis consumption methods that are currently available.”
Three of the Top Beneficiaries of Cannabis 2.0:
Top Stock No. 1 – Aurora Cannabis (ACB)
Aurora Cannabis recently expanded into edibles, vapes, and concentrates in late June 2019.
"Aurora is the world's leading producer of high-quality cannabis and we're ready to introduce high-value product additions to this improved, federally legal market," said the Company's CEO Terry Booth. "From the beginning, we've invested in industry-leading production and distribution technology, and in consumer research to drive products to market that consumers will desire. These things, together with the dynamic partnerships we've entered into on the accessory and technology fronts, position us well for this new market launch in December as per Health Canada's recent regulatory amendments."
Top Stock No. 2 – Canopy Growth Corp. (CGC)
Canopy Growth announced at the Barclays 2019 Global Consumer Staples Conference that Cannabis 2.0 would be a major catalyst for the company over the next 12 to 18 months. In addition, the company highlighted its focus on increasing its store count in Canada from 460 stores in September 2019 to 600 by early 2020.
Better, the company will launch edibles, beverages, and vape products after Canada legalizes CBD all over again this October.
Top Stock No. 3 – HEXO Corporation (HEXO)
Companies like HEXO Corporation are major beneficiaries, too. HEXO’s partnership with Molson Coors Brewing will allow it to profit from cannabis-infused drinks. HEXO has also gotten involved with gummies and premium vapes.
By: Ian Cooper of Wellington Insights