One of the many growing niches In the cannabis industry that is gaining a lot of attention are companies that provide extraction services. Although a heavy amount of attention has been paid to the companies that grow marijuana, it seems as though these new services has brought a new wave of investors and capital into the market. Because of this, we have seen these extraction service providers begin to grow with heavy market caps behind them. One of the interesting factors about these types of companies comes as they happen to be less volatile than the largest marijuana stocks in the industry.
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This is because the pure-play pot stocks tend to see the highest amount of fluctuations where it then trickles down in smaller doses. This is not to say that these types of marijuana stocks are not volatile at all, because they most certainly are. The extraction market has grown substantially in both the U.S. and Canada. Canada only recently legalized the use of extractions despite marijuana itself being legal for quite some time. So with legalization in Canada and a rise in usage of these products in the U.S., the extraction market is continuing to look up.
Marijuana Stock To Watch: A Key Extraction Service Provider
MediPharm Labs (MEDIF Stock Report) (LABS) is one of the most prominent producers of extracts in the market. The company has heavy ties to the Canadian market which it sees as having an extreme amount of potential for the next few years. But, MediPharm Labs is not only interested in producing extractions for itself. The company has been working off of several contracts it has that are mostly a year or longer at the least. 
With this, it is able to produce various resins, distillates, concentrates, and other products for use by these key market players. MediPharm has stated that it is working on being able to process as much as 500,000 kilograms when working at peak capacity. With this, it should be considered one of the largest providers of these extractions in the whole of the market. For this reason, the company remains a key pot stock to watch.
Marijuana Stock To Watch #2 This Company Offers Extraction Service Solutions
The Valens Company (VLNCF Stock Report) (VLNS) is another one of the leading producers of cannabis extraction services and products in the market. The company has stated that its production run rate should reach as much as 425,000 kilograms per year when operating at peak capacity. What’s really interesting is that the Valens Company has several large contracts with some of the biggest pot stocks in the industry.
This includes both HEXO and Tilray which both have signed a two-year commitment for purchasing products. As a Canadian pot stock and extraction provider, the company has all the opportunities in the world at its fingertips. As stated before, Canada is one of the fastest-growing markets for these extractions. This makes Valens a key pot stock to watch going forward.
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