Canadian Cannabis Stocks Betting On Cannabis Derivatives To Boost Sales; Canopy Growth, Cronos Group, OrganiGram

The COVID-19 pandemic has wreaked havoc across equity markets but Canadian Cannabis stocks have been lucky. The anxiety and chaos resulting from the pandemic led to most people turning to cannabis for relief which created high sales for some Canadian cannabis companies. Here are some stocks expected to continue growing sales from cannabis derivatives.

Cronos among Canadian stocks focusing on “Cannabis 2.0” products

Cronos Group (NASDAQ:CRON) is among the stocks that had outstanding performance amid the COVID-19 pandemic. The company is expected to boost its sales with the uptick of cannabis derivative sales in the second half of this year. Its partnership with Altria Group (NYSE:MO) will focus on growing sales of derivatives.

The company has been using its cash on developing cannabis derivatives and R&D instead of going on acquisition spree like other operators. This is the main reason why it had a solid balance sheet at the end of Q1 with CA$1.3 million in cash and investments.

OrganiGram’s large customers accounted for 10% of Q2 sales

Another operator that has been on recovery in recent times is OrganiGram Holdings (NASDAQ:OGI) after exiting unprofitable activities. The company has also bet big on cannabis derivative after investing CA$15 million in the production of cannabis-infused chocolates. With more dispensaries opening in Canada and the easing of lockdown restrictions, the company will benefit from growing demand for adult-use products. Most importantly the company depends on large customers for its sales and in Q2 three of its largest customers accounted for more than 10% of sales.

Canopy backed by Constellation Brands to produce infused beverages

Canopy Growth Corp (NYSE:CGC) which is the largest Canadian cannabis stock by market capitalization is also poised to continue growing its sales, especially from derivatives. The operator is backed by beer maker Constellation Brands (NYSE:STZ) to produce cannabis-infused drinks. Its new CEO David Klien has reduced expenses and stopped its aggressive acquisition. The opening of more cannabis stores will play a role in canopy growing its sales as well as the international market.

This article by Money News National is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Money News National has no position in the stocks mentioned. Thank you for reading.

__________________

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

LEAVE A REPLY

Please enter your comment!
Please enter your name here