3 Undervalued US Cannabis Operators To Be Aware Of

The cannabis sector has been trending higher during the last week and we attribute the move to the introduction of favorable legislation in the United States (US) Congress.

Earlier this week, GOP Congressman Greg Steube introduced a bill entitled “Marijuana 1-to-3 Act” which would move cannabis from Schedule I to Schedule III under the federal law. The development was a catalyst for the cannabis sector and we will monitor the progress of the legislation.

Cannabis legalization is coming in the US and it is only a matter of time until there is legislative reform at the Federal level. We believe this is the biggest potential catalyst for the cannabis sector and have worked to identify companies that would benefit from this.

Today, we want to highlight 3 operators that would benefit from legislative reform in the US and want our readers to be aware of these companies.

1. We consider Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) to be an undervalued multi-state operator (MSO) due to the significant potential catalysts that it has for growth. The company has active retail operations in Ohio, Arkansas, Michigan and California. The MSO also has pending retail operations in Illinois and New Jersey, and craft cultivation and/or processing operations in Nevada, Ohio, and Arkansas. We are bullish on the markets that Body and Mind is levered to and want our readers to be aware of the business.
2. Earlier this year, we highlighted Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) as a North American cannabis operator that is flying under the radar. Currently, the company is capitalizing on Missouri and West Virginia in the US and we are favorable on this part of the business. Although Missouri and West Virginia are not considered to be high-profile markets in the US, we expect Heritage to use the markets to gain early-mover advantage as well as a launchpad to expand into other states in the US. The management team has already proven its ability to execute on a large-scale in Canada and we expect its expertise to play a key role in the growth in the US. We believe the business has significant potential catalysts for growth and are of the opinion that the market is discounting the growth prospects that are associated with the business.
3. Cresco Labs Inc. (OTCQX: CRLBF) (CSE: CL) is a larger scale US MSO which has lost more than 70% of its market cap from its 52-week high. During the most recent quarter, the company generated $210 million of revenue and reported to have $130 million of cash on hand. We like Cresco due to the markets it is levered to and its leadership positions in Illinois, Pennsylvania, and Massachusetts (according to BDSA). The states that Cresco Labs is levered to include Arizona, California, Utah, Colorado, Missouri, Illinois, Michigan, Ohio, Pennsylvania, New York, Connecticut, Florida, West Virginia, New Jersey, Virginia, Delaware, Maryland, and Washington DC. With a market cap that is close to $600 million, we find the valuation to be attractive after the current decline. Due to the growth prospects that are associated with the business, we plan to create a small position in both portfolios. The position we will create is equal to approx. 15% of our total planned investment and we will monitor how the stock continues to perform.

If you are interested in learning about these US operators, please send an email to support@technical420.com with the subject “Undervalued US Cannabis Operators” to be added to our distribution list.

Company Relationship Disclosure

T420 is responsible for the T420 opinions provided in this disclosure except all sources or information provided by other parties were not verified or authenticated and T420 does not undertake to confirm or substantiate or be responsible for such information provided by other parties.

Any Content posted regarding a Profiled Issuer is not a solicitation or recommendation to buy, sell or hold securities. We cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. All information should be independently verified. We are not responsible for errors or omissions in our publications, and any opinions expressed are subject to change, without notice. We do not, nor are we under any obligation to undertake due diligence or investigation or authenticate and verify whatsoever regarding Profiled Issuers or any Content posted in relation thereto and we do not receive any verification from the Profiled Issuer regarding the Content we disseminate. Similarly, while we endeavor to facilitate the provision of quality information, we are not responsible for any loss or damages caused or alleged to have been caused by its use nor verify or authenticate or update such information.

Pursuant to an agreement between Spotlight Media Corp and Heritage Cannabis (CANN) we have been hired for a period of 90 days beginning December 1, 2022 and ending March 1, 2023 to publicly disseminate information about CANN including on the Website and other media including Facebook and Twitter. We are being paid $3,000 per month by CANN and were paid “ZERO” shares of unrestricted or restricted common shares. We plan to sell the “ZERO” shares of CANN that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of CANN in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

Pursuant to an agreement between StoneBridge Partners LLC and Body and Mind Inc. we have been hired for a period of 360 days beginning September 15, 2021 and ending September 15, 2023 to publicly disseminate information about (BAMM) including on the Website and other media including Facebook and Twitter. We are being paid $1,000 per month (BAMM) and were paid “ZERO” shares common shares. We hold “ZERO” shares common shares. We will not sell or purchase shares during the Term. We reserve the right to buy or sell shares after the Term in accordance with State and Federal securities laws. See “Disclosures” below which is to be read in conjunction with this release.

This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, state, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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