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

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

Yesterday Canopy declared it was going to acquire Hiku Brands (TSXV:HIKU / US OTC:DJACF) for C$1.91 a share.
It is a huge deal for Hiku shareholders…
It is a much 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 that are exclusively focused on the soon-to-be-legal recreational-use marijuana market in Canada.
Hiku obtained the Tokyo Smoke brand of marijuana stores and has been in the process of building out a series 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 information also confirms the Seed Investor’s thesis that investors searching for the huge gains in marijuana need to be focused on companies in the recreational use market.
There are two big factors that are going to keep these recreational use marijuana stocks on the scale.
The first element is that the recreational use marijuana market is so much bigger than the medicinal use market.
When you see predictions of the potential bud 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 element is a huge 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 firms in How To Get In On The Next Leg Of The Marijuana Bull Market Today.

“The absence of recreational use market focus is an important and increasing problem for legal bud companies in Canada. ”

It’s a big problem and the significant marijuana companies are going to have to cover big to resolve it.
The Hiku acquisition at a 30% premium over market price is just further evidence of this problem and the huge gains investors can make by getting in on the firms with the solution. 
Expect more information like this in the weeks and months ahead.
Recreational use marijuana will begin 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 biggest legal marijuana company is aggressively becoming positioned.
Best regards,
The Seed Investor

Posted in: Investing

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