TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
Recreational marijuana is coming to Canada and this will be a major catalyst for the companies levered to this opportunity.
There are many factors driving the Canadian cannabis market higher and we are bullish on this burgeoning market. From international growth initiatives to cannabis oils, there are a lot of exciting growth trends that investors need to be aware of.
Today, we have highlighted three recent company developments and investors should be keeping an eye on these three companies.
Hempco Surges After Aurora Increases Ownership Interest
After Aurora Cannabis (ACB:APH) (ACBFF) announced that it increased it its ownership interest in Hempco Food and Fiber Inc. (HEMP:APH) (HMPPF) to 35%, the market responded favorably and Hempco rallied more than 40%.
Prior to this decline, Hempco was trending considerably lower and the shares were looking for a bottom. This rally took place on very strong trading volume and momentum popped higher on this move.
Hempco’s position within the hemp based nutrition space makes it a strategic partner and attractive acquisition candidate. Industrial hemp grown under contract to Hempco contains efficient extractable quantities of cannabidiol (CBD). The CBD market is expected to show significant growth, and Aurora considers the proposed transaction with Hempco to be a strategic initiative to enable market share dominance in this attractive segment.
Although this rally was significant, Hempco has fallen more than 25% from its January highs and we are monitoring the shares closely. We are favorable on the relationship between Aurora and Hempco and see significant upside to current levels. Aurora’s CEO issued positive guidance when the company announced that it increased its investment level and we expect this relationship to benefit Hempco shareholders.
