The marijuana market has been extremely lucrative for some time now, but with new legislation across North America and abroad, many companies have come to the forefront of the industry showing new ways to grow and export cannabis that has never been done before.
The companies CannTrust Holdings (NASDAQOTH:CNTFF) and Organigram Holdings (NASDAQOTH:OGRMF), have both been some of the largest players in the cannabis growing space. The two companies share a large amount of similarities including being from Canada and sharing a similar trajectory, but both companies still present a very interesting case to investors.
The two companies are in no way the same, but investors have compared them greatly over the past year or so. CannTrust has been at the forefront of the weed revolution in Canada for some time now, and recently posted earnings of around $11.4 million Canadian dollars in their first quarter. This makes this quarter the third consecutive quarter of taking in profits.
One of the biggest factors of growth for CannTrust has been that they take in 60% of their sales from cannabis extracts, which has been a market that has frown very quickly. The sales are also growing very rapidly for CannTrust, which means that the next quarter’s revenue could potentially continue to show a large amount of profit.
The company has yet to move into the international market as many other Canadian giants have done, so currently, all of their profits have come from the domestic market in Canada. The company recently teamed up with another cannabis company known as Apotex, which is the largest pharmaceutical company of generic drugs in Canada, and listed as the seventh largest throughout the world. CannTrust has also been working to grow their business domestically due to the impending recreationally legal market that has been growing there for some time now.
In addition, CannTrust also has recently secured a 430,000 sq. ft. growing space with additional grow operations in the works. All of these factors combined help to illustrate the true nature of how much value CannTrust potentially has to investors.
Organigram has been another one of the most profitable growers of cannabis in the Canadian market. The company recently announced their highest earnings of all time back in their last quarter with around CA$1.1 million in earnings. Most of the sales that the company does comes from the sales of dried cannabis and its products. The company has also seen its cannabis-derived oils market grow rapidly, and could potentially become the largest part of their business in the future.
Organigram has also grown by as much as 472% in terms of active monthly patients over the last year-long period. This is quite a staggering amount of growth, and it helps to illustrate the amount of potential that the company has if they can continue upping their production of cannabis and its related products. Organigram has also lined up two partners to help move their business into the growing international market. Organigram recently stated that they will be buying a 25% stake in the German company Alpha-Cannabis. The two companies plan to move forward with approval so that they can begin to supply the German market with high-quality cannabis and cannabis-related products.
Both of these stocks represent a solid way to get into the cannabis market but in two varying directions. The hopes are high that both companies will continue to cement growth throughout the industry domestically and abroad over the course of near to not-too-distant future.
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