Last week was a short but busy week for the cannabis sector after the United States stock market was closed on Monday for Memorial Day and we are monitoring the sector closely this week.
Although the week was short, cannabis stocks have been laser focused on execution and today, we have highlighted 5 important company developments that cannabis investors need to be aware of.
5 Company Developments to Know
- Innovative Industrial Properties (IIPR) is trading at new all-time highs after acquiring a property in Massachusetts and entering a long-term lease and development agreement with a subsidiary of PharmaCann for a 26,000 sq. ft. industrial facility and a 32,000 sq. ft. greenhouse facility on the property. The NYSE traded cannabis REIT represents a long-term opportunity and we are favorable on the continued execution. Over the next year, we expect IIPR to expand its reach and make new acquisitions.
- Cannabis Wheaton (CBW.V) (CBWTF) continues to trend lower after closing the previously announced $115 million bought deal financing. The company plans to use the net proceeds for capital expenditures relating to domestic and international operations and capacity expansion, for potential new investment opportunities and for general working capital purposes. When it comes to Canadian cannabis stocks, this is one we have taken a wait and see approach with. Before becoming favorable, we want to see how Wheaton continues to work to create value for investors.
- Radient Technologies Inc. (RTI.V) (RDDTF) has been trending higher and we are favorable on the recently announced operational update on its manufacturing facility expansion, pending ACMPR license, and future growth initiatives in Europe. Radient’s relationship with Aurora Cannabis Inc. (ACB.TO) (ACBFF) is an attractive aspect of the story. Aurora’s pending acquisition of MedReleaf is expected to be accretive, as the combined company will require significant additional extraction capacity from Radient.
- iAnthus Capital Holdings, Inc. (IAN.CN) (ITHUF) has been trading higher and the market responded favorably to the first quarter financial and operating results reported last week. In New York, Florida, Massachusetts, and Vermont, iAnthus now holds licenses to operate up to four cultivation and processing facilities and 34 dispensaries. We are favorable on the opportunity as we expect iAnthus to continue to be aggressive in ramping up production and dispensary openings across each of its operations.
- Canopy Growth Corporation (WEED.TO) (CGC) continues to trend higher and execute on previously announced initiatives. Last week, Canopy acquired Daddy Cann Lesotho, (trading as Highlands), marking the fifth continent of operations for Canopy Growth who has a presence in North and South America, Australia, Europe, and Africa. The marijuana producer is one of the best-run cannabis companies and continues to execute on all cylinders. We are favorable on Canopy’s growth prospects and view the company as a long-term opportunity.