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The United States cannabis market represents a major opportunity and we have seen several Canadian cannabis companies plant their flag in this market. We are favorable on this focus and view the United States as a rare opportunity for companies.
Today, we have highlighted 3 Canadian cannabis companies that are focused on the United States market. These companies have attractive leverage to high growth markets and investors need to keep an eye on these players.
MPX: Responds to the Decision in Arizona
MPX Bioceutical Corporation (MPX.CN) (MPXEF) has been under pressure after the sale of its cannabis concentrates came under question by the State of Arizona. We are favorable on the North American cannabis company due to the attractive leverage to the United States.
Last week, MPX issued a statement in response to the decision by the Arizona Court of Appeals from late June, affirming the decision convicting Rodney Christopher Jones of possessing a jar containing 0.05 ounces of hashish.
MPX believes the ruling will likely be met with an appeal or other legal action which will hopefully resolve once and for all an issue that has been the subject of contention, and conflicting court rulings, for several years going back to at least 2012.
The shares have been under pressure following this development and we are monitoring the recent decline. We are bullish on MPX due to continued execution, strong fundamentals, and growth initiatives. MPX possesses several catalysts for growth and this is an attractive aspect of the story. Investors need to keep an eye on this one.
CROP: Continues to be an Execution Story
Last week, we highlighted CROP Infrastructure Corp. (CROP.CN) (CRXPF) as an undervalued United States cannabis company and the shares have performed very well since then. The recent rally has taken place on very strong volume and comes as the company continues to execute on previously announced initiatives.
On Friday, CROP surged higher on very strong volume after announcing a member interest purchase agreement with Elite Ventures LLC, of Nevada, to acquire a 49% of a Nye County agricultural property. The company’s tenant has negotiated a contractor to clear 120 acres and will plant approx. 900,000 seeds of high CBD strain of hemp. The property is expected to yield approx. 120,000 pounds of flower and CROP expects the planting to take place prior to July 15th and expects an early fall harvest.
Last week, CROP also announced an agreement with Ocean Green Management of California, to partner on multiple applications for cannabis retail locations with the option to purchase the commercial real estate. The company agreed to finance the purchase of real estate on the grant of a license and the dispensaries will operate under the brand, Emerald Heights.
CROP has been executing flawlessly and is focused on becoming a leading vertically integrated cannabis firm that has exposure to all aspects of the supply chain. The company has been making use of its stronger balance sheet for investments and acquisitions, which we expect to be accretive. CROP has several potential catalysts for growth and we are keeping a close eye on this one
High Hampton: A California Cannabis Stock to Watch
Last month, we highlighted High Hampton (HC.CN) (HHPHF) as an attractive California cannabis opportunity and continue to keep a close eye on this one. The shares have come under a little pressure in the last month and have come off its recent lows. With the number of catalysts that High Hampton has for growth, this is a cannabis stock that investors need to keep an eye on.
In May, High Hampton singed a binding term sheet to acquire 8 Points Management LLC and its Bravo Distro subsidiary in an all-stock deal. 8 Points Management is a proven operator that offers a full-service distribution model that will help High Hampton access major distribution centers in strategic locations across California, including a prominent location in Sacramento. Bravo is a California cannabis distributor that has been recording significant growth and provides immediate access to a major distribution center in California
The assets help create the foundation for building out a leading distribution network in California as High Hampton plans to unify these assets and create centralized hubs that will maximize value for shareholders. High Hampton has made several additions to its management team and we are favorable on the ability to execute.