Major Marijuana Acquisition Points Marijuana Investors To Top Stocks To Buy Now

2018-07-11 The Seed Investor The Seed Investor
Major Marijuana Acquisition Points Marijuana Investors To Top Stocks To Buy Now
Major Marijuana Acquisition Points Marijuana Investors To Top Stocks To Buy Now
by is licensed under

Canopy Growth (TSX:WEED / NYSE:CGC) is the world’s largest legal marijuana company and it just made another big move to further cement its leadership position.
 
Yesterday Canopy announced it was going to acquire Hiku Brands (TSXV:HIKU / US OTC:DJACF) for C$1.91 a share.
 
The total deal is valued at right around US$200 million and represents a 30% premium over the closing price of Hiku shares.
 
It’s a big deal for Hiku shareholders…
 
It’s an even bigger deal for Seed Investors.
 
Here’s why.
 
This acquisition was a major step into recreational use marijuana for Canopy Growth.
 
Hiku Brands is one of the newest breed of marijuana companies which are exclusively focused on the soon-to-be-legal recreational-use marijuana market in Canada.
 
Hiku acquired the Tokyo Smoke brand of marijuana stores and was in the process of building out a chain of coffee shop-style stores for marijuana consumers before this takeover.
 
The acquisition gives Canopy a direct stake in the legal recreational marijuana market when it opens up in Canada later this year.
 
This news also confirms the Seed Investor’s thesis that investors looking for the big gains in marijuana need to be focused on companies in the recreational use market.
 
There are two major factors which are going to keep these recreational use marijuana stocks on the climb.
 
The first factor is the recreational use marijuana market is so much bigger than the medicinal use market.
 
When you see forecasts of the potential marijuana market reaching $50 billion in the US and $7 billion in Canada, that’s that recreational use market. The medicinal use marijuana is a fraction of that.  
 
The second factor is a big problem major marijuana companies are facing.
 
The Seed Investor explained this problem and how it was going to drive up the value of branded, recreational use marijuana companies in How To Get In On The Next Leg Of The Marijuana Bull Market Today.
 

“The lack of recreational use market focus is a major and growing problem for legal marijuana companies in Canada.”

 
It is a big problem and the major marijuana companies are going to have to pay up big to solve it.
 
The Hiku acquisition at a 30% premium over market price is just further evidence of this problem and the big gains investors can make by getting in on the companies with the solution. 
 
Expect more news like this in the weeks and months ahead.
 
Recreational use marijuana will start rolling out across Canada in October and you’ll want to be positioned for it before it comes.
 
After all, the world’s largest legal marijuana company is aggressively getting positioned.
 
Best regards,
 
 
The Seed Investor
 

Tags
["Choom", "Investing", "Opinion"]
Thumbnail Photo Credit: by is licensed under
The Seed Investor Report disclaimer

The Seed Investor (TSI) SAFE HARBOR STATEMENT: Statements contained in this online report and document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. TSI provides no assurance as to the subject company’s plans or ability to affect any planned and/or proposed actions. TSI has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by TSI to be reliable, but TSI provides no assurance, and none is given, as to the accuracy and completeness of this information.

Disclaimer
Please see full disclaimers at www.TheSeedInvestor.com applicable to all content provided by TSI, wherever published or re-published: http://theseedinvestor.com/about/disclaimer.

Disclaimer: This release/advertorial is a commercial advertisement and is for general information purposes only. This release/advertorial does not constitute an offer or solicitation to buy or sell any securities or individualized investment advice. This is a native advertisement, meaning it is an informational paid marketing piece. THESEEDINVESTOR.com (TSI) makes no recommendation that the securities of the companies profiled or discussed on this website should be purchased, sold or held by viewers that learn of the profiled companies through our website. Please review all investment decisions with a licensed investment advisor. TSI receives payments ranging from approximately $25,000 to $150,000 to publish and/or distribute advertisements on behalf of a company. TSI retains any excess sums after expenses as its compensation. TheSeedInvestor.com and its owners, operators and affiliates may benefit from any increase in the share prices of the profiled companies. TheSeedInvestor.com may be paid for services using options or free-trading shares. TheSeedInvestor.com and/or its owners, operators and affiliates may be selling shares of stock at the same time the profile (or other information) is being disseminated to potential investors; TheSeedInvestor.com will not advise when it or its affiliates decide to sell. Investors must make all investment decisions based on their own judgment of the market and the particular securities.
 
This advertorial contains forward-looking statements that involve risks and uncertainties. This advertorial contains or incorporates by reference forward-looking statements, including certain information with respect to plans and strategies of the featured company. As such, any statements contained herein or incorporated herein by reference that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believe(s),” “anticipate(s),” “plan(s),” “expect(s),” “project(s),” “will,” “make,” “told,” “could,” “might,” and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause actual events or actual results of the company to differ materially from these indicated by such forward-looking statements. Certain statements contained herein are forward-looking statements as defined in Section 27A of the Securities Act of 1933 and 21E of the Exchange Act of 1934. Such statements include, without limitation, statements regarding business, financing, business trends, future operating revenues and expenses. There can be no assurance that such expectations will prove to be correct. Investors are cautioned that any forward-looking statements made by the company, or contained in this advertorial are not guarantees of future performance, and that the issuer’s actual results may differ materially from those set forth in the forward-looking statements. We undertake no obligation to update any statements made herein except as required by law. Differences in results can be caused by various factors including, but not limited to, the company’s ability to be able to successfully complete planned funding agreements, to successfully market its products in competitive industries or to effectively implement its business plan or strategies. To reiterate, information presented in this advertorial contains “forward-looking statements.” Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. More information on the company may be found at http://www.sec.gov where readers can review all public filings submitted by the company. TheSeedInvestor.com is not a certified financial analyst or licensed in the securities industry in any manner. The information in this advertorial is subjective opinion and may not be complete, accurate or current and was paid for, so this could create a conflict of interest.