California has been a leader in medical marijuana for nearly two decades. The state recently opened the adult-use market on January 1st, gaining investor interest. California, unlike other states with legalization, permits publicly-traded cannabis companies, and investors who want to capitalize on this market several companies to consider.
Before we discuss those companies, we would like to mention that stocks include in this article should not be considered a recommendation to buy the stock. This information is simply a starting point for your own research in cannabis investing. Now on to the five companies with potential in California cannabis investors should investigate.
- CannaRoyalty (CSE: CRZ) (OTC: CNNRF) is based in Canada and invests in royalty agreements, equity stakes, licensing deals, debt, and strategic partnerships. CannaRoyalty has built a large platform in California, which includes an equity interest in River (RVR), a quality craft distributor. The company also has 100% ownership of GreenRock Botanical, Soul Sugar Kitchen edibles, and Alta Supply and an exclusive distribution deal with Bhang, California’s best-known brands for edibles and concentrates. This company is fairly newCannaRoyalty look at their website and recent corporate deck.
- LifeStyle Delivery Systems (CSE: LDS) (OTC: LDSYF) is also based in Canada and was originally intended to license its own CannaStrips product, but became a vertically integrated producer out of its 20,000 sq. ft. Southern California growing and processing facility. The company had over C$6.8 million invested in the facility at the end of September 2017. For more information on the company visit lifestyledeliverysystem.com
- MedMen is not publicly traded as of yet, but it announced its intention to go public through a Canadian listing in the next few months. The company has several operations in Southern California and runs a retail store in Las Vegas. It also plans to build three more stores in Vegas and operates two medical dispensaries in New York. To learn more about the company, look at this annual report.
- Sunniva is a relatively new company that started trading this year. It’s based in Canada and is pursuing a license for a large facility in British Columbia. Sunniva is developing a 325,000 sq. ft. cultivation facility in Cathedral City, California. It believes this facility will produce 60 million grams per year. Check out Sunniva’s investor deck to get more information.
- Terra Tech is one of the original cannabis stocks and began publicly trading in 2012. It started recognizing sales from California cannabis products in 2016 with its IVXX brand. The company reported its full results for 2017 on March 15 and is expected to see major growth in 2018. For more information visit terratechcorp.com.
There are several other companies you could invest in, but with any company, you need to be cautious and research them thoroughly before investing. Cannabis is one of the fastest growing industries in the United States and is definitely worth looking into.