Marijuana Stocks Getting a Boost From Big Deal News
CORAL GABLES, FL / ACCESSWIRE / December 7, 2018 / Marijuana stocks are in a very bright spotlight today as one of the biggest deals in the history of this emerging industry has been made. It was formalized today that Altria (MO), owner of Marlborough maker Philip Morris will be putting a near $2 billion bet on legal cannabis. Reports have been fluttering about all week long as to the legitimacy of this proposed deal. With this confirmation today, cannabis stocks are getting a big boost.
Four leading cannabis stocks to watch after this big development: Leafbuyer Technologies Inc. (LBUY), Cronos Group (NASDAQ: CRON; TSX: CRON), New Age Beverages (NBEV), and Innovative Industrial Properties, Inc. (IIPR).
Leafbuyer Technologies Inc. (LBUY) has been focused on the latest trend in the cannabis industry: partnerships. The company recently partnered with recreational and medical cannabis dispensaries throughout several legal markets to bring consumers the best deals for the 2018 Green Friday Deals Event in late November. ''Cannabis dispensaries are in the retail business just like clothing stores and technology outlets, and they understand the power behind offering great deals for consumers on the Black Friday shopping event,'' said Leafbuyer's COO, Mark Breen.
In additiona to this, Leafbuyer Technologies Inc. (LBUY) entered into a new partnership with The Stranger, a well-known media outlet and content site in Washington, to significantly expand the reach of Leafbuyer's deals platform in the region. The Leafbuyer Network reaches millions of cannabis consumers every month through other partner sites including LA Weekly, Voice Media Group (multiple properties), Grasscity and Weedtube to name a few.
In its most recent financial reports, the company recorded a quarterly sales increase of 67% in the quarter ending September 30, 2018. The increase reflects the revenue booked in the quarter versus the same quarter of the previous year.
''Our record growth this quarter is a function of our bolstered national expansion and the higher dollar value we are receiving for our bundled packages,'' said Mark Breen, COO of Leafbuyer. ''We are seeing a high demand for our loyalty services as well as our customer acquisition platform. We expect to see a significant increase in revenue coming from loyalty and order ahead products from our cannabis dispensary customers.''
For More Information On Leafbuyer, Click Here
Cronos Group (CRON) shook up the cannabis industry today after it was announced an approximately C$2.4 billion equity investment in Cronos Group by Altria. If you are unfamiliar with Altria, they are the owners of Philip Morris, the company that makes Marlborough Brand cigarettes.
Altria will also receive Warrants of Cronos Group (the ''Warrants''), that if fully exercised, would provide the Company with an additional approximately C$1.4 billion of proceeds. The Shares issuable to Altria pursuant to the Subscription Agreement will result in Altria holding an approximately 45% ownership interest in Cronos Group (calculated on a non-diluted basis), exercise of the Warrants would result in incremental ownership of 10% for a total potential ownership position of 55%.
''Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria,'' said Howard Willard, Altria's Chairman and Chief Executive Officer. ''We believe that Cronos Group's excellent management team has built capabilities necessary to compete globally, and we look forward to helping Cronos Group realize its significant growth potential.''
For More Information On Cronos Group, Click Here
New Age Beverages (NBEV) along with other cannabis stocks took off during pre-market trading on Friday. This momentum comes on the heels of its own deal news. New Age Beverages announced the signing of a definitive agreement to acquire Morinda Holdings, Inc., a Utah-based healthy lifestyles and beverage company with operations in more than 60 countries around the world.
The merger creates the 40th largest non-alcoholic beverage company in the world with $300 million in net revenue, $20 million in adjusted EBITDA, $200 million in assets, no debt, and $40 million in cash and working capital. It also provides New Age's Health Sciences products and portfolio of CBD-infused beverages immediate access into 60 countries, especially in China and Japan.
For More Information On New Age Beverage, Click Here
Innovative Industrial Properties (IIPR) is a bit different from its industry comps. The company is a real estate investment trust that buys medical cannabis growing and/or processing facilities, then leases these facilities back to growers for an extended period of time.
In its most recent financials, Innovative Industrial Properties showed that it had generated total revenues of approximately $3.9 million in the quarter, representing an increase of more than 150% from the prior year. As of November 7, 2018, the Company owned ten properties located in Arizona, Colorado, Maryland, Massachusetts, Michigan, Minnesota, New York and Pennsylvania, totaling approximately 952,000 rentable square feet, which were 100% leased with a weighted-average remaining lease term of approximately 14.7 years.
As of November 7, 2018, the Company had invested approximately $121.5 million in the aggregate and had committed an additional approximately $15.9 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at the Company's properties.
For More Information On Innovative Industrial Properties, Click Here
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Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. MAPH Enterprises LLC which owns www.MarijuanaStocks.com is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release.
MAPH Enterprises LLC, which owns www.MarijuanaStocks.com, may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. MAPH Enterprises LLC, which owns www.MarijuanaStocks.com, may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC (owners of MarijuanaStocks.com), Midam Ventures LLC and Leafbuyer Technologies Inc., Midam is being paid $50,000 for a period of 30 days beginning November 1, 2018, and ending November 30, 2018. Midam has been paid an additional $50,000 and 40,000 common restricted shares of Leafbuyer Technologies, Inc. extending the contract another 30 days ending December 31, 2018. We own 77,000 shares of Leafbuyer Technologies. We may buy or sell additional shares of (LBUY) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about Leafbuyer Technologies Inc. For previous compensation and disclaimer information, click here for our full disclaimer
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