The legalization of cannabis for recreational use in Canada has presented unique investment opportunities. The friendly regulatory frameworks is one of the catalysts behind the country’s burgeoning cannabis sector. Going forward investors may have to pay close watch to Aurora Cannabis Inc. (TSE:ACB), Canopy Growth Corp (TSE:WEED) and Nextleaf Solutions Ltd (CNSX:OILS) given their solid patents relating to cannabis production.
Cannabis Technologies Push
Focus for the longest time has been on companies that have ramped up cannabis cultivation and production capacities to take advantage of the growing demand. However, as it stands, Canada may not be able to hold on to the monopoly of cannabis cultivation and production.
The passing of the U.S farm Bill calls for a change of tact if Canadian cannabis companies are to hold on to their competitive edge. The removal of hemp from a list of prohibited substances under federal laws has opened the door for companies to experiment with cannabidiol.
Big brands such as Coca Cola and Molson Coors Brewing have already inked deals with Canadian Cannabis producers to develop CBD infused drinks. As it stands, the smart money may not be on the production of the actual commodity going forward.
Canadian companies with robust technologies for the development of unique cannabis products stand a better chance to generate significant value going forward. In addition, companies offering services to the cannabis sector also stand to generate significant returns.
Data and intellectual property stand to be the key driver of the Canadian cannabis sector going forward. For investors, this is the right time to take interest on Cannabis plays with robust IP portfolios, as valuations for cannabis cultivators and producers appear to be sky high and out of sync with revenues.
Going forward, cannabis growers will need improved hydroponics as well as lighting systems and software to be able to produce high-quality yields. Companies providing such technologies would be the biggest beneficiaries.
Canadian Cannabis IP stocks
Canopy Growth is a perfect example of a company providing broader exposure to the Canadian cannabis sector. In addition to being one of the biggest producers, the company has also built a robust portfolio of patents for the cannabis sector, poised to generate significant value through licensing going forward.
The company also boasts of innovations in beverage production as well as medical treatments and plant genetics. Any company looking to gain a head start on the cultivation and production of cannabis will have to contact Canopy growth.
 Aurora Cannabis is another company that has invested heavily on cannabis technologies. While the company is, yet to detail how many patents it had obtained and how many it is working on, it is one of the companies investing big on research and development.
The company is also working on analytical science related to terpenes profiling as well as plant science. Aurora working on clinical studies as well as cannabinoid applications also affirms its core business diversification from cannabis cultivation and production.
 Nextleaf Solutions though a wild card has developed a portfolio of issued and pending patents that could be extremely valuable in future. The technologies in question relate to a unique industrial scale process of producing purified cannabinol distillate. It is also the only publicly traded cannabis company with a cannabis-specific extraction patent granted in the U.S.
