From Potentials to Profits: Unearthing the Best Cannabis Penny Stocks Under $1
Are marijuana stocks a good investment in July? The birth of the cannabis sector has given rise to a new generation of trailblazing businesses leading the way in innovation, research, and development. These top cannabis companies in the United States have emerged as essential players in a rapidly expanding market. In general, these organizations have set new success criteria, tempting investors eager to ride the green growth wave with vertically integrated operations, cutting-edge technology, and branding skills.
Based on estimates, the marijuana market will continue to grow in the future years, just as it has. Many individuals believe that marijuana has numerous therapeutic and recreational applications and has the potential to be a very wealthy business. Until 2030, the marijuana market will increase at a compound annual growth rate of at least 25%. As a result, many investors are looking into chances in this sector.
Marijuana penny stock trading can be an exciting and potentially lucrative sector, but it is not without risks and obstacles. This article examines the world of cannabis penny stocks, examining the prospects, problems, and critical considerations for traders looking to enter this volatile market. Look at three of the best marijuana stocks to watch in July.
Navigating the Cannabis Market: Top-Rated Marijuana Penny Stocks Under $1
TPCO Holding Corp.
The Parent company is a consumer-focused, vertically integrated cannabis company with twelve retail locations, one delivery hub, and a carefully curated product line that includes Monogram by Shawn “JAY-Z” Carter, Caliva, Mirayo by Santana, and Cruisers.
The Parent Company is committed to leveraging its position to contribute to developing a more equitable cannabis sector. Its social equity venture fund aspires to remove systematic barriers to entrance and enable significant participation, growth, and leadership opportunities for minority entrepreneurs in the multibillion-dollar legal cannabis industry. In June, the Parent Company received approvals for a proposed business combination with Gold Flora.
Q1 2023 Financial Highlights
- Q1 2023 net sales from continuing operations were $18.1 million (excluding bulk wholesale business disposed of during Q4 2022).
- Gross profit from continuing operations grew 15.8% to $7.8 million, or 43% of net sales, compared to $6.7 million, or 30% of net sales in Q1 2022.
- Q1 2023 net loss from continuing operations was $16.5 million compared with a Q1 2022 net loss of $33.0 million.
- Adjusted EBITDA loss from continuing operations was $9.3 million in Q1 2023, an 57% improvement from a loss of $21.7 million in Q1 2022. Adjusted EBITDA removes the effects of changes in the fair value of financial instruments, impairment charges, stock-based compensation, and other non-cash items.
- Cash and cash equivalents totaled $76.1 million as of March 31, 2023.
GRAMF Stock Performance
GRAMF stock closed at $0.1587 on July 6th, up 0.47% in the last month of trading. In this case, the stock has a 52-week price range of $0.13-$0.98 and is up 8.70% year to date.
SLANG Worldwide Inc.
With a diverse portfolio of five separate brands and products supplied across the United States, SLANG Worldwide Inc. is the industry leader in branded cannabis consumer packaged goods. SLANG focuses on acquiring and expanding market-proven regional brands and creating unique new brands to grasp global market opportunities and fit shifting consumer tastes in 13 legal cannabis markets around the country. The Company has more than a decade of experience operating in the young and highly regulated cannabis sector, and its partners benefit from that knowledge by having access to the SLANG playbook for effective operations, sales, and marketing.
First Quarter 2023 Results
- Revenue from continuing operations for the three months ended March 31, 2023, was $10.82 million, compared with $8.37 million in the three months ended March 31, 2022, representing a 29% increase year-over-year. The primary drivers of the increase were due to an increase in our Core Market sales of $2.05 million in Vermont and $0.78 million in Colorado, offset by a reduction in Emerging Market sales.
- Gross profit of $5.72 million (53% gross margin) in Q1 2023, compared with $3.66 million (44% gross margin) in Q1 2022, representing a 56% increase year-over-year. Adjusted gross profit1 was $5.68 million (52% adjusted gross margin) in Q1 2023, compared with $3.64 million (43% adjusted gross margin) in Q1 2022, representing a 56% increase year-over-year.
- EBITDA1 of $0.68 million in Q1 2023, compared with ($2.36 million) in Q1 2022. The improvement in EBITDA is primarily attributable to a $2.06 million increase in gross profit and a $0.55 million decrease in share-based payments. Further reductions in operating expenditures, such as consulting and subcontractors, also improved EBITDA.
- Adjusted EBITDA1 of $0.74 million in Q1 2023, compared with ($1.64 million) in Q1 2022. The improvement in Adjusted EBITDA is primarily attributable to a $2.04 million increase in gross profit before fair value adjustments of biological assets. Further reductions in operating expenditures, such as consulting and subcontractors, also contributed to the improvement in Adjusted EBITDA.
- $11.67 million in cash and restricted cash on March 31, 2023, compared to $11.92 million on December 31, 2022. Excluding deferred cash consideration of $0.33 million paid in connection with the Company’s acquisition of High Fidelity Inc. (“HiFi”), the Company was operational cash flow positive in the three months ending March 31, 20231.
SLGWF Stock Performance
SLGWF stock closed at $0.0264 on July 6th, up 14.47% in the last month of trading. In this case, the stock has a 52-week price range of $0.014-$0.094 and is up 1.74% year to date.
Aleafia Health Inc.
Aleafia Health is a Canadian cannabis company that operates in Canada and in international markets such as Australia and Germany. The company runs a virtual medical cannabis clinic with physicians and nurse practitioners who provide health and wellness services across Canada.
The Company has three licensed cannabis production facilities in Ontario, including Canada’s largest outdoor cannabis cultivation facility. The Company manufactures a wide range of cannabis and cannabis derivative products, including pre-rolls, milled, dried flower, vapes, oils, capsules, edibles, sublingual strips, and topicals, for sale in Canada’s medical and adult-use markets, as well as in select overseas jurisdictions.
Aleafia Health Fourth Quarter and Full Year Results
- Revenue increased 9% to $11.7 million for the period ended March 31, 2023 (“Q4 FY2023”) versus $10.7 million for the period ended March 31, 2022.
- Net revenue increased 33% to $9.4 million for Q4 FY2023 versus $7.0 million for the period ended March 31, 2022
- Revenue increased 24% to $57.4 million for the 12 months ended March 31, 2023 (“FY2023”) over the twelve months ended March 31, 2022,
- Net revenue increased 19% to $42.8 million for FY2023 over the twelve months ended March 31, 2022
- #5 and #2 market share ranking in Divvy pre-roll and milled product formats in Q4 FY2023 in Ontario1
- 318% growth in international net revenue2 in FY2023 over the twelve months ended March 31, 2022
- A third consecutive quarter of positive Adjusted EBITDA3 was achieved in Q4 FY2023.
ALEAF Stock Performance
ALEAF stock closed at $0.0189 on July 6th, down 7.35% in the last month of trading. In this case, the stock has a 52-week price range of $0.0140-$0.0720 and is down 59.09% year to date.
Cracking the Code: How to Identify Promising Marijuana Penny Stocks Under $1
Cannabis is no longer taboo as more states and countries legalize marijuana for medical or recreational purposes. Instead, it has grown into a multifaceted sector that includes everything from lifestyle and fashion to health and wellness. In general, reviewing financials and press releases can assist you in identifying the most significant cannabis companies on the market.
Overall, Many experienced investors are actively exchanging short-term stakes in the biggest cannabis companies to capitalize on current market volatility. Use technical indicators and chart patterns to discover the best entry and take-profit zones before opening a position. In general, you can improve your ability to execute lucrative trades by carefully searching for relevant criteria. Because of their volatility, the top marijuana stocks may be among the most interesting to follow in 2023.
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