Canada will Officially Legalize the Use of Cannabis Flower

This year in October, Canada will officially legalize the use of cannabis flower. By doing so, they would be able to produce and manufacture a wide range of products and make use of their advantages.

The cannabis flower helps in maintaining health and also quickens the healing process. Its legalization will urge the investors as well as provide opportunity to them to invest more in this venture. It will also furnish more opportunities to the manufacturing industries of the cannabis products. These companies would manufacture CBD edibles and dried sales of these flowers.

HEXO Corporation

Hexo Corporation is a major cannabis flower products manufacturer. This company had a major drop down in shares by at least 50%. This gave investors a chance to invest in the lower priced shares. Hexo’s competitor Horizons marijuana life sciences had a fall of shares by 39.1%.

The cannabis manufacturing companies were restricted due to the supply issues. Due to this reason, fewer products were manufactured which ultimately led to a drop in sales and shares.

Hexo Corp. may be down at the moment but they are a strong company and they can become a leader in the sales of the cannabis flower. They have an agreement with Molson Coors Brewing to produce CBD infused products and beverages. Hexo Corp. owns about 600,000 square feet land to grow and process CBD products. They expect to have a sales growth from $59.7 million in 2019 to almost $400 million in 2020.

OrganiGram

Organigram Holdings sales fell by 30% in August. Canada’s health department has been extremely slow in approving sales license for the company. The Organigram Holdings postponed the launch of CBD derivative products till December rather than the October.

Organigram is different from others for couple of reasons. While most manufacturers are located in Ontario or British Colombia, Organigram is located in the New Brunswick. At the moment, Organigram is the only cannabis company to have supply agreements with all the provinces in the country.

MediPharm Labs

Unlike the two companies mentioned above, MediPharm labs is an extractor and provider rather than a cannabis producer. An extraction-based provider like MediPharm has been a self-relying and convenient producer as told by the experts.

If an investor has to choose between many extractor stocks, he/she would definitely pick MediPharm for a couple of reasons.

One reason is that MediPharm is already gaining good profits margins. Medipharm’s sales may not be as expected by an investor but they seem quite impressive when you consider that it had very few sales in the last year.

MediPharm has also gotten extraction contracts with big companies such as Canopy Growth and Cronos Group. These agreements will cost millions of dollars and would also assist the firm to flourish over the next few years. As CBD derivative products are offering a greater profit as compared to dried flowers, much more firms are initiating the services of extraction like medipharm.

With the legalization 2.0 of cannabis, medipharm may have a hand in many more extraction agreements and projects with massive profit margins.

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