The cannabis sector is on fire and the ancillary CBD industry is experiencing explosive growth, investors across the globe are excited about companies like West Coast Ventures Corp. (OTC: WCVC)
Investor interest has shifted from large established cannabis companies to smaller, more specialized stocks. This is driven by a desire for greater profits that come without the baggage of many large stocks. Companies like West Coast Venture Corp. (OTC: WCVC) are poised to take the market by storm.
Supreme (TSX: FIRE), Neptune (TSX: NEPT) (NASDAQ: NEPT) and TGOD (TSX: TGOD) are finally getting attention. For those interested in investing in the cannabis sector, the three companies become alternative options.
WCVC is America’s First Restaurant Stock
West Coast Ventures Corp, Inc. (OTC: WCVC) represents an all-American CBD stock that marries two of the countries most promising industries, Fast Casual Dining and CBD. The CEO and Founder, Jim Nixon, became a CBD convert after seeing how it helped his son.
The company became America’s first restaurant to have CBD on the menu fulltime and all of their Illegal Burger and Illegal Pizza locations sell Illegal Brands CBD sachets and Illegal Brands CBD water. The menus of each restaurant dedicate space to educating consumers on the benefits of CBD.
The company has recently opened an Illegal Pizza restaurant in Florida which is anticipated to make $750,000 in revenue this year. Two of their Illegal Burger locations in Denver are expected to make $750,000 and $1 million in revenue respectively. WCVC is certainly a stock to watch.
Supreme is on FIRE
The Supreme Cannabis Company, Inc. (TSX: FIRE) is recovering after difficulties in mid-June. The company received a major boost after the conclusion of a Truverra takeover agreement. Supreme will manage two subsidiaries: Canadian Clinical Cannabinoids Inc. and Truverra Europe BV.
With this strategic acquisition, Supreme will be able to significantly increase its presence in the Canadian and European markets. Canadian clinical facilities will be used to produce high quality cannabis extracts, and Supreme will be able to use the same facilities to produce concentrates and evaporation oils.
Supreme has even more options once the company has finalized the acquisition of the licensed BlissCo cannabis, investors note: Supreme is not interested in gaining market share in the cheaper segment of cannabis varieties. The company will focus on high-end product markets where the brand is already known. FIRE is expected to explode in the coming months.
Cannabis nutraceuticals with Neptune
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) is one of the big winners in the cannabis industry. So far this year, it has grown by 101.7%, which proves that management’s decision to switch from nutraceuticals to cannabis was a wise one. Nutraceuticals are products obtained from natural sources whose effectiveness is based on science. The company’s expertise in extraction and purification will be the key to progress in the rapidly growing sector.
The company has signed an agreement to offer Canopy Growth extraction and purification services. As the volume requirements are enormous, Neptune will generate profits for this affiliate. Two other extraction agreements were signed with the cannabis companies Tilray and TGOD.
Health Canada has also authorized Neptune to process cannabis, which allows it to ship extracts from the Quebec plant. Since Neptune has taken over North Carolina’s cannabis supplier Sugarleaf, the company hopes to generate $150 million in revenue in U.S. markets over the next three years.
TGOD to conquer the global market
Investors are now under greater pressure to take the Green Organic Dutchman Holdings, Ltd. (OTC: TGOD) seriously. Health Canada has extended the licences for its facilities in Ancaster, Ontario, until August 2022, giving TGOD the authority to grow, process and sell cannabis from this site.
In addition, Ancaster’s state-of-the-art hybrid greenhouse is nearing completion. Starting in late August, TGOD can increase production and execute the company’s business plan. The 166,000 square foot facility will produce 17,500 kilograms each year. TGOD also looks at global exports.
In fact, TGOD is positioning itself to become the world’s leading high-end biological cannabis company. Activities are focused on the medical cannabis markets in Canada, Europe, Latin America and the Caribbean. TGOD will also be active in the Canadian market for adult use.
In Canada, the competitive advantage lies in the organic hemp CBD petroleum activities. TGOD grows certified high quality organic cannabis and medical patients can benefit from the sustainable and natural principles of hemp. TGOD plans to increase its production to 219,000 in processing facilities in three countries.
As investors increasingly turn their attention to small niche cannabis market players it is likely that we will continue to see success stories at the minnow end of this dynamic market.