When it comes to pot stocks, things are no different. There are dozens of cannabis stocks trading under a dollar and many are not worth investing in at this point, but here are three stocks that could be undervalued at their current prices.

Harvest One

Harvest One Cannabis (TSXV:HVT) is a global cannabis company based in Canada. The company operates two cultivation facilities, which, once fully licensed, will produce over 11,000 kg of cannabis. The company is expecting to bring that up to 20,000 kg of annual production.

Recently, the company announced the acquisition of Satipharm, a health and wellness company that specializes in CBD-based products. Satipharm’s signature Gelpell technology for cannabis products has the potential to make Harvest One a global leader in the medical cannabis industry.

Harvest One has signed an agreement with Holland & Barrett, Europe’s largest retailer of wellness products, to supply 841 retail stores with Satipharm CBD 10 mg Gelpell capsules. The company also owns Dream Water, the number one selling natural liquid sleep shot. Dream Water has sold over 30 million units and is available in over 30,000 stores across North America.

VIVO Cannabis

VIVO Cannabis (TSXV:VIVO) is a Canadian licensed producer of premium medical-grade cannabis with over 100 years combined experience in international pharmaceuticals. The company offers high-quality cannabis and premium medical products through its Fireside, Beacon Medical, and Lumina brands.

In March of 2019, VIVO received approval for expansion at both its British Columbia and Ontario facilities, adding 4,000 kg of production. This brings the company’s total annual production to 8,000 kg by the end of 2019 and expects to increase that to 13,500 kg by 2020.

VIVO is a leader in the Canadian medical market with the company’s wholly owned Harvest Medicine operating five clinics in four provinces with over 27,000 patients. In Europe, the company has received a wholesale licence in Germany and already has 30,000 patients.

By 2022, the company expects to be making $350 million in domestic and international medical cannabis sales revenue with an additional $150 million in recreational sales. With a net selling price of $7.70 per gram, VIVO premium cannabis remains within the top tier of the industry.

48North

48North Cannabis (TSXV:NRTH) is a vertically integrated cannabis company with two indoor cultivation facilities in Ontario. These two facilities together will provide 5,000 kg of organic dried flower annually. The company has secured distribution agreements with the Ontario Cannabis Store and the Societe quebecoise du cannabis.

48North is seeking to develop its own proprietary health and wellness products with an engaging and trusted brand. The company created Latitude, a publication focused on empowering women to connect and engage with cannabis culture, and developed a cannabis Nanospray under the company’s Mother & Clone brand.

The company is also expanding into cannabis oils with premium pre-filled vape cartridges that will be available soon. With all of these products and two operational facilities, 48North already looks attractive, yet these are not the main reasons you should look into this company.

Recently, 48North has become the first publicly traded, licensed producer approved by Health Canada to open an outdoor cannabis farm in Brant County, Ontario. The “Good Farm” will provide an extra 40,000 kg of annual production.

The organic sun-grown cannabis at the Good Farm is expected to be cultivated at the lowest cost per gram in the county, maybe the world. At $0.25 a gram, the company can produce cannabis for almost four times cheaper than the next greenhouse producer and eight times that of indoor producers.

The post The Top 3 Cannabis Stocks Trading Under a Dollar appeared first on The Motley Fool Canada.

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Organigram not only leads all Canadian cannabis producers with the lowest production costs, but it also recently received organic certification from Health Canada. This makes the company one of the largest producers of organic cannabis in Canada with an expected 113,000 kg of annual capacity by the end of 2019.

In comparison, Flowr has much higher costs and is banking on branding high-quality products that are expected to return much higher prices. FlowrRX, Flowr’s medical cannabis brand, is exclusively distributed by Shoppers Drug Mart and is the highest-priced cannabis sold by Shoppers.

Premium dried flower and derivatives

It may be the highest-priced cannabis on the market, but it is also more potent and of higher quality than most other products in Canada. Flowr argues, “high price is not what is driving consumers to the black market; poor quality is.”

Flowr is the only legal cannabis supplier in Canada that can produce dried flower that passes Health Canada testing “without the need for a decontamination ‘kill step.’”  Decontamination is a process where irradiation is used to reduce microbes to acceptable levels.

This makes the company stand out from the rest of the pack — something that helped Flowr gain an R&D partnership with one of the largest agricultural companies in North America: Scotts Miracle Gro.

Organigram may not be able to match the higher quality of Flowr, but it certainly has many advantages over its smaller competitor. Organigram is making large investments into CBD oils, edibles, and vaporizer technology.

In the fall of 2019, Organigram is expected to have an annual production of four million kgs of chocolate edibles and have invested $15 million into the project. The company is partnering with Canada’s Smartest Kitchen to assist in the production of cannabis-infused chocolate and to expand R&D into edibles.

When it comes to branding, both companies have made some interesting agreements. Flowr is working with the makers of Ace Hill Beer to develop Ace Valley, a luxury cannabis brand. Organigram has partnered with Canadian pop-culture icons the Trailer Park Boys to develop Trailer Park Bud.

Foolish bottom line

Both of these stocks have great potential. In the end, both of these companies will likely do very well. Flowr will likely dominate the premium high-grade market and has been working to reduce its production costs, which could put it over the top.

Organigram already has the lowest costs in the industry and is set to reach well over 100,000 kg of annual production in 2019. The company is set to burst into the edibles market in the fall of 2019 and is actively seeking beverage companies to partner with.

Overall, Flowr will do well catering to its niche market and may even be profitable, but it cannot match Organigram production or derivative sales. This could change if Holigen Global Health receives licensing to begin production in its Alentejo facility in Portugal.

Flowr owns 19.8% of Holigen, which is building the largest cannabis-cultivation facility in the world. Once licensed and fully operational, Alentejo will produce 635,000 kg of cannabis annually.

The post 2 Canadian Pot Stocks Uplisted to the Nasdaq: Which Is a Better Buy? appeared first on The Motley Fool Canada.

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Zenabis currently operates three facilities strategically located on the East and West Coast of Canada, with a fourth facility expected to receive its production licence by Q2 2019. At full capacity, Zenabis could become one of the largest producers of cannabis in the world with 131,283 kg of capacity expected by early Q3 2019.

In February, it was announced that Zenabis had signed an agreement to supply Shoppers Drug Mart with dried marijuana and cannabis oil. Zenabis has also signed supply agreements with Pharmasave and National Access Cannabis along with distribution agreements with eight Canadian provinces and one territory.

Internationally, Zenabis has secured supply agreements to deliver up to 6,000 kg to Europe by 2020. The company has ventures to supply dried flower and cannabis oil to Panama and Paraguay, once legalized, and has agreed to ship CBD isolate to Germany.

In addition to the impressive list of supply agreements, Zenabis is focused on reducing its price per gram and overall production costs. Currently, they are average $1.10 per gram at the company’s Atholville facility. Zenabis expects to average $0.70 per gram once its Langley facility is operational.

One of the main methods of obtaining this goal is the utilization of greenhouse production as opposed to indoor cultivation. Zenabis’s facility in Langley, British Columbia, is almost fully dedicated to greenhouse production, with 450,000 sq. ft. of cultivation space and a 96,000 kg capacity.

Zenabis is well positioned to become a leading licensed producer in Canada and is planning on taking advantage of the potential market for THC/CBD-infused drinks. The company advertises a ginger and cannabis-infused lemonade on its website and has partnered with Hillsboro Corp., maker of True Buch Kombucha drinks, to produce cannabis-infused tea.

Zenabis currently employs +600 Canadians and has partnered with First Nations communities, who have invested $10 million into Zenabis. On May 24, 2019, Zenabis announced that it had received approval to begin trading on the Toronto Stock Exchange under the symbol “ZENA.”

Andrew Grieve, CEO of Zenabis, mentioned how this milestone “elevates our profile as a quality issuer … this will open the door to a broader range of investors and provide us with improved liquidity.”

As of late May 2019, Zenabis is down 72% on the year, and this is why it is potentially a steal at the current price. Zenabis reached its 52-week high of $6.85 in late 2018 and hit the 52-week low of $1.48 a week ago. Anything under $2 may be a bargain for Zenabis stock.

Zenabis will likely not sit at these levels for long. It might be good for investors to keep an eye on this stock, especially if other international markets begin to legalize cannabis. Once its facilities in Nova Scotia and British Columbia are fully licensed and optimized, the green sky’s the limit.

The post Why Zenabis (TSX:ZENA) Stock Is a Steal at the Current Price appeared first on The Motley Fool Canada.

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In Aleafia’s video manifesto, it asks the question, “What does it mean to grow?” To Aleafia, the word growth is not relegated to the realm of marijuana flower production alone. Aleafia has established a vertically integrated company that focuses on health and consumer wellness; it is dedicated to providing the best patient experience possible.

Focusing on cannabis research and development to establish cannabis as an alternative to opioids, alcohol, and other harsh drug addictions, the company states that in 2017 the global prescription opioid market was $23 billion and it has clinically proven that “45% of patients stopped using Benzodiazepines after medical cannabis treatment.”

The Government of Canada has announced that Canada is facing an opioid crisis, and Aleafia’s Canabo Clinics are at the forefront of this war. Canabo Medical Clinics are the largest network of referral-only cannabis clinics in the country with 20 locations “from St.John’s to Kelowna” and are already servicing tens of thousands of patients with plans to expand.

Recently, Aleafia has announced that it has completed phase one construction of its Niagara Greenhouse and plans to complete phase two by early Q2. This will be in addition to its indoor and outdoor production facilities in Port Perry. The company’s total assets as of September 2018 were $76 million with a gross profit of $3.1 million, while its stock price is up 60% since January 1, 2019.

Aleafia has been named TMX Group’s 2019 TSX Venture 50 Top Performing Company of the Year. Aleafia may likely be the best pick for the near future, but there are two other companies that cannabis investors should keep an eye on.

The first company is Green Organic Dutchman (TSX:TGOD) and, after a rough end to 2018 and the cancellation of two major agreements, the company looks to have rallied after the announcement of a secured supply agreement with the province of Ontario.

TGOD also owns 49% of Epican Medicinals, a Jamaican vertically integrated cannabis company, allowing it access to the Jamaican market. TGOD has facilities in Quebec and Ontario, plans to be operational by the summer of 2019, and is also looking to expand into European markets. TGOD stock is up 40% since January 1, 2019, but it is still not making any significant income and most likely will not until late 2019.

Canopy Rivers (TSX:RIV) is the other stock I want to highlight. Many have referred to this stock as “Canopy Growth 2.0,” and for good reason. Canopy Rivers is actually a subsidiary of Canopy Growth and is more of a financing and development company.

Rivers acts like a hedge fund for smaller cannabis companies to utilize their growth potential and partner with Canopy. This enables them to share in the growth of these companies and help to fill supply agreements. Smaller cannabis companies like James Wagner Cultivations, LiveWell, and TerrAscend partner with Rivers and gain access to a network of affiliated companies that work together to develop and execute their individual goals.

Canopy Growth has pledged another $30 million to Rivers and has upped its shares 0.56% in Rivers, showing its desire to continue supporting its sister company.

The post Which Ontario Cannabis Companies Are Challenging for 2nd Behind Canopy Growth Corp (TSX:WEED)? appeared first on The Motley Fool Canada.

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