Marijuana Stocks Mentioned Below:
Leafbuyer Technologies, Inc. (OTCQB:LBUY), Tilray, Inc. (NASDAQ:TLRY) & Aurora Cannabis Inc (NYSE:ACB)
It doesn’t matter where you stand on the issue;
the fact is that the trade wars that are being created right now are impacting the market. Mexico’s 5% tariff scare is dwarfed in comparison to the one between the U.S. and China. So where does that leave marijuana stocks?
This is a good question. In one school of thought, marijuana stocks may not even be impacted due to the little exposure most companies have to China. On the other hand, you could look at it and say, “Will it affect places like Europe or Australia?” Being that a few companies are already going international, where could be the segments and what could be the companies to keep an eye on?
For starters, one segment that will likely always be evolving no matter what the global issues may be is technology. We’re beginning to see the advent of cannabis and technology collide and that ranges anywhere from payment processing to on-demand applications and everywhere in between.
A company that’s been throwing around in the conversation has been Leafbuyer Technologies, Inc. (OTCQB:LBUY). The company initially focused on being the “Priceline of Pot” has evolved and that could spell more opportunity for the company & those looking at it right now.
Most recently Leafbuyer Technologies, Inc. (OTCQB:LBUY) signed a Letter of Intent to acquire CBD.io. According to the company, this deal could effectively double the company’s current revenue run rate. CBD.io is a successful expo operator for the CBD industry and plans to rapidly expand its offering this year. Kurt Rossner, CEO of Leafbuyer said directly, “Last year, CBD.io sold nearly 200 booths, this year we will cross-sell our platform of over 400 clients and look to double that.”
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And the likelihood of a trade war with China interrupting the cannabis deals market in North America may be less likely. On top of this, Leafbuyer Technologies, Inc. (OTCQB:LBUY) has also been expanding its national footprint, further insulating it from global waves. The company opened additional offices on the west coast and further, announced partnerships with outlets like the Oklahoma Gazette as well as dozens of dispensary clients.
The launch of its Greenlight Platform for ordering from dispensaries has been quickly received by consumers with over 80,000 users to date. Complementing this was the launch of its delivery mobile app feature to allow dispensaries in states like California, Arizona, Nevada, and Washington to add delivery to their offering all through Greenlight.
What About Marijuana Stocks In The Global Supply Chain?
We’ve seen a list of marijuana stocks enter a global arena through supply chain expansion. But then again, even though many of these pot stocks are operating globally, the cannabis market make-up doesn’t really expose these companies to China directly (and for the most part indirectly either).
Tilray, Inc. (NASDAQ:TLRY), for instance, has built a foothold in the cultivation, production, and distribution segment of the industry. The company operates in twelve countries across 5 continents. After the FDA hearing earlier this month, Tilray could be positioned to take on new regulations that may come from the FDA in the future. The bigger conversation was with regard to testing and consistency in the product. Tilray is a GMP-certified medical cannabis producer already, which helps. But again, the company has zero exposure to China.
The current footprint spans the UK, Germany, Croatia, Czech Republic, Cyprus, and then the only other “close areas” to China are Australia and New Zealand. Unless the government completely cuts off global shipping routes, the likelihood of Tilray being directly impacted by trade tariffs could be slim (but never say never). The bigger news coming from the company this month is with regard to its largest shareholder, Privateer Holdings.
Some concerns arose in the past when Privateer appeared to be a potentially large risk for retail investors due to the sheer size of its position and when the lock-up on that stock came to an end. This month, Privateer said it will extend for up to two years on 77% of Tilray’s total shares outstanding. They will also “provide for the orderly release of the 75 million Tilray, Inc. (NASDAQ:TLRY) shares held by Privateer to Privateer’s equity holders.”
Another marijuana stock “in the same boat” is Aurora Cannabis Inc (NYSE:ACB). Not only had the company initially focused on North America, but their growth has expanded relatively everywhere but China. Similar to Tilray, Aurora operates in multiple countries across 5 continents (24 countries to be specific). This has helped build a revenue stream that is growing by over 20% quarter over quarter.
Aurora Cannabis Inc (NYSE:ACB) is most likely prepared for further regulation on testing as it too has EU GMP-certified cannabis production facilities. If anything, the company has more of a likelihood of becoming a leader in CBD/hemp cultivation and sales in Europe than expanding into China at this current time.
In addition to this, Aurora Cannabis Inc (NYSE:ACB) was just named among a few other marijuana companies to sign on as a PAX Era brand partner. It effectively allows the company to offer products in pods that are compatible with PAX devices; a move that could enhance the current brand portfolio of the company.
What Will Come Of China Trade Talks?
There’s really no telling what will happen with this China trade deal. It seems to change each week. But one thing we can say is that for the most part, marijuana stocks are being driven by other forces that have little to do with global trade between the US and China. For this reason, not only are these some stocks to keep an eye on but it is also a sector that is likely to better navigate the waters when the talking heads are only chatting about China trade.
DISCLAIMER:
Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC (owners of MarijuanaStocks.com), Midam Ventures LLC and Leafbuyer Technologies Inc., Midam is being paid $50,000 for a period of 30 days beginning November 1, 2018, and ending November 30, 2018. Midam has been paid an additional $50,000 and 40,000 common restricted shares of Leafbuyer Technologies, Inc. extending the contract another 30 days ending December 31, 2018. Midam has been compensated an additional $50,000 by Leafbuyer Technologies and has extended its period of coverage to January 31, 2019. Midam has been compensated an additional $50,000 by Leafbuyer Technologies and has extended its period of coverage to March 1, 2019. Midam has been compensated an additional $50,000 by Leafbuyer Technologies and has extended its period of coverage to April 1, 2019. Midam has been compensated an additional $100,000 by Leafbuyer Technologies for a period of coverage from April 12, 2019 to June 12, 2019. We owned 77,000 shares of Leafbuyer Technologies. We may buy or sell additional shares of (LBUY) in the open market at any time (as of 3/29/2019) Midam Ventures no longer owns 77,000 shares of LBUY), including before, during or after the Website and Information, to provide public dissemination of favorable Information about Leafbuyer Technologies Inc. Please Read Our Full Disclaimer Here
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