The worldwide cannabis market is expected to grow to $4 trillion. And two Canadian cannabis stocks have the jump on it.
Canada legalized weed for all purposes last year. Now, the country looks at it differently than in the United States. The restrictions, and even the stigma, are gone.
They have everything else a company needs to succeed. But that is just scratching the surface.
Now, Canadian firms are using these advantages to get a jump start on their rivals by expanding into Europe.
And it could mean a big payday for investors who jump on this trend early.
The pace of cannabis legalization in Europe is somewhat slower than in the United States. It’s virtually all medical use only, though tiny Luxembourg has confirmed it will legalize recreational use.
And contrary to popular belief, cannabis is not actually legal in the Netherlands. It’s sold in coffee shops simply because it’s better tolerated. But the Dutch are rolling out a legal experiment. In 10 Dutch cities, nationally approved growers can cultivate cannabis legally for coffee shop owners.
So legalization is coming, and Canadian marijuana stocks are ready to profit from this.
Smart companies are not idly sitting by. In fact, these two companies are already putting the pieces together to capitalize on this wave…
Watch These Canadian Cannabis Stocks Take Off
Money Morning Director of Cannabis Investing Research Greg Miller has two Canadian cannabis stocks to give you a head start.
The first is MPX International Corp. (OTCMKTS: MPXOF), headquartered in Toronto. MPX operates across the global cannabis industry with an emphasis on cultivating, manufacturing, and selling CBD products.
MPX just acquired a cannabis company based in Malta that gives it the ability to produce cannabis oils and cannabis derivative products. It also enables MPX to distribute medical cannabis through Europe and Africa.
Earlier in the year, MPX gained a premiere brand presence in Europe when it acquired Holyweed. Holyweed is the only CBD brand officially designated “Swiss Certified Organic.”
Investors should be aware that this stock trades for less than $1 in the United States and volume averages 40,000 shares. That means it is not a stock for quick trading. But this stock is great for the long term.
Greg’s second pick is TerrAscend Corp. (OTCMKTS: TRSSF). It has profitable operations at every step in the cannabis vertical. It takes part in cultivation, pharmaceuticals, and hemp products. It’s also the only company licensed to sell cannabis in the United States, Canada, and Europe.
It recently completed its first international shipment of dry cannabis to Germany. And Germany is the biggest medical-cannabis market in Europe.
Also on the medical front, TerrAscend provides support to patients through many subsidiaries. Solace Health Inc. produces medical cannabis. TerraHealth Network Inc. supports health education. And SolaceRx prepares drugs mostly unrelated cannabis.
Last month, TerrAscend agreed to acquire ABI SF, LLC. It’s a San Francisco–area cannabis cultivation facility operator and owner of the State Flower brand.
These stocks give you a jump on the competition. Both already have footholds in Europe. And they’ve both backed that up with supply chain improvements.
The even better news is that the market has not really given these companies their due. No one’s accounting for their penetration of the European market. Their current values don’t reflect inroads they’ve already made.
Again, it is a shortsighted domestic view that provides globally oriented investors with the advantage.
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Source: Money Morning