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

Canopy Growth (TSX:WEED / NYSE:CGC) is the world’s largest legal marijuana company and it just made another major move to further cement its leadership position.

Yesterday Canopy declared it was going to get Hiku Brands (TSXV:HIKU / US OTC:DJACF) for C$1.91 a share.
 
The entire 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 investors…
 
It’s an even bigger deal for Seed Investors.
 
Here’s why.
 
This acquisition was a significant step into recreational use marijuana for Canopy Growth.
 
Hiku Brands is among the latest 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 shops and was in the process of building out a series of coffee shop-style shops for marijuana consumers before this takeover.
 
The purchase gives Canopy a direct stake in the legal recreational marijuana market when it opens up in Canada later this year.
 
This information also confirms the Seed Investor’s thesis that investors searching for the big gains in marijuana have to be focused on businesses in the recreational use industry.
 
There are two major factors which will maintain these recreational use marijuana stocks on the scale.
 
The first element is the recreational use marijuana market is so much bigger than the medicinal use industry.
 
When you see predictions of the potential marijuana market reaching $50 billion in the US and $7 billion in Canada, that’s that recreational use industry. The use marijuana is a fraction of that.  
 
The second element is a big problem major marijuana businesses are facing.
 
The Seed Investor clarified this problem and how it was going to push 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 absence of recreational use market focus is a major and increasing problem for legal marijuana companies in Canada. ”

 
It’s a big problem and the significant marijuana companies will have to cover big to resolve it.
 
The Hiku acquisition in a 30% premium over market price is simply further evidence of this problem and the big gains investors can make by getting in on the companies with the solution. 
 
Expect more information in this way in the weeks and months ahead.
 
Recreational use marijuana will start rolling out across Canada in October and you’re going to want to get positioned for it before it comes.
 
After all, the world’s largest legal marijuana company is aggressively getting positioned.
 
Best regards,
 
 
The Seed Investor
 

Published at Wed, 11 Jul 2018 16:15:49 +0000

Posted in: News

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