NEWSROOM

Opportunity Lights Up in Cannabis Stocks (NASDAQ: KERN) (NASDAQ: TLRY) (OTC US: MEDH) (OTC US: GRWG)

While there are some knuckle-whitening formalities to traverse, the political environment has resolved in favor of a pro-cannabis regime now in control of both houses of Congress and the White House.

The upshot momentum has already stoked positive results and investor sentiment in the space.

According to Akerna (NASDAQ: KERN), the Christmas and New Year’s holidays marked the single biggest cannabis sales period of the year to close out last year. The final period of the year generated roughly $427 million in sales in the space.

The largest sale day of the period was Wednesday, Dec. 23, with $87.3 million, making it the third largest cannabis sales of the year, just behind Green Wednesday with $87.4 million. Exceeding all expectations, New Year’s Eve was the single biggest sales day of 2020 with $89.4 million.

With this in mind, we take a look at some of the most interesting names in the space, including: Tilray Inc. (NASDAQ: TLRY), MedX Holdings Inc (OTC US: MEDH), and GrowGeneration Corp (OTC US: GRWG).

 

Tilray Inc. (NASDAQ: TLRY) offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa.

One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations.

Tilray Inc. (NASDAQ: TLRY) most recently announced that it has been selected by the French National Agency for the Safety of Medicines and Health Products (ANSM) to supply Good Manufacturing Processes (GMP) certified medical cannabis products for experimentation in France.

According to the release, Tilray will supply GMP-produced medical cannabis products to serve patients in need for the duration of the French experiment (18-24 months), due to begin in the first quarter of 2021.

Even in light of this news, TLRY has had a rough past week of trading action, with shares sinking something like -5% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.

Tilray Inc. (NASDAQ: TLRY) pulled in sales of $51.4M in its last reported quarterly financials, representing top line growth of 0.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($155.2M against $133.5M).

 

MedX Holdings Inc. (OTC US: MEDH) recently issued a corporate update related to an interesting legislative session in Texas earlier this month. The company is a recent pivot into the cannabis space and may deserve a close look given its strong outlook and the promising context offered by the cannabis space as momentum drives new capital toward this growth theme.

MEDH is based in Texas, so the state’s shifting legislative context has had an important impact on the company’s outlook. According to its recent update, there are currently 16 state-level jurisdictions that permit marijuana for adult recreational use and 36 states that allow it for medical purposes. Ahead of the January 2021 legislative session, Texas lawmakers have pre-filed several bills that would expand the state’s medicinal cannabis program and add it to the list of states legalizing adult-use.

MedX Holdings, Inc. (OTC US: MEDH) also notes that it “continues to prepare for these impending legislative changes, finalizing agreements and advancing relationships that will support its growth-by-acquisition strategy and vertical integration.”

More to the point: the company is anticipating that full legalization in Texas is “inevitable” and its franchise development team is “preparing an aggressive growth campaign to re-introduce cannabis to an expanded marketplace”. Management projects that the convergence of coffee and cannabis products will be an effective way to reach consumers previously hesitant to cannabis consumption – which is no doubt the big point.

“We hope to complete our plans to merge and acquire internal and external brands and entities in Q2 and throughout the remainder of 2021,” stated MEDH CEO Hans Enriquez. “We look forward to a favorable outcome of the legislative session and expect expansion to the hemp and medical program in Texas. We are excited to execute our operational strategies in 2021 and prepare for the next phase of growth.”

MedX Holdings Inc. (OTC US: MEDH) just regained OTC Markets access, got its last three periods of quarterly filings caught up, and achieved Pink Current status. That now sets up a refresh where MEDH is ready to begin executing its operational strategy for 2021. Given the dramatic strength in the group, that shift stands to potentially pay off for existing stakeholders, especially given its outlook on the Texas legislative context and the steps already underway to capitalize.

 

GrowGeneration Corp (OTC US: GRWG) trumpets itself as a company that, through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States.

GrowGen carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.

GrowGeneration Corp (OTC US: GRWG) just announced the acquisition of Indoor Garden & Lighting, a two-store chain of hydroponic equipment and indoor gardening supply stores serving the Seattle and Tacoma, Washington area. The Company will be consolidating its current Seattle operation into the acquired stores. This acquisition brings the total number of GrowGen hydroponic garden centers nationwide to 40 stores.

“We’re thrilled to kickstart 2021 with our acquisition of Indoor Garden & Lighting, which boasts a strong commercial customer base and a talented team of grow professionals,” said Darren Lampert, GrowGeneration’s CEO. “This deal expands our footprint in the Pacific Northwest and puts us in close proximity to Tacoma’s large commercial operators. With the addition of Indoor Garden & Lighting, we expect Washington’s thriving adult-use market to generate annual revenues of $10 million for GrowGen.”

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action GRWG shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -8% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.

GrowGeneration Corp (OTC US: GRWG) pulled in sales of $55M in its last reported quarterly financials, representing top line growth of 152.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($55.3M against $20.9M).

 

DISCLAIMER:  EDM Media LLC (EDM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels.  EDM is NOT affiliated in any manner with any company mentioned herein.  EDM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  EDM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities.  The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material.  All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks.  All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release.  EDM is not liable for any investment decisions by its readers or subscribers.  Investors are cautioned that they may lose all or a portion of their investment when investing in stocks.  For current services performed EDM has been compensated four thousand dollars for news coverage of the current press releases issued by Medx Holdings Inc. by a third party.

EDM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and EDM undertakes no obligation to update such statements.

 

 

 

 

 

Media Contact:

EDM Media LLC

Email: IR@EDM.Media

Office: 800-301-7883

EDM.Media

Categories

Mcap MediaWire - Costumer Service