Green Growth Brands Inc (OTCMKTS: GGBXF) has struggled for direction after seeing its proposed takeover of Aphria Inc (NYSE: APHA) fall through. The stock has been the subject of wild swings after starting the year on a roll, rallying to highs of $4.5. The stock did tumble as uncertainty over the proposed takeover continued to cause havoc.
Catalysts And Share Price Analysis
However, the stock has shown signs of resurgence, in recent weeks, depicted by a bounce back in share price. The bounce back has come even on the Company confirming its deal for Aphria has expired resulting in a charge of $89 million on a repurchase of shares.
Even on the Aphria setback, Green Growth Brands has continued to strengthen its prospects in the cannabis sector by making strategic moves. Expansion into Milwaukee with the opening of a first Seventh Sense CBD shop has already come into play.
The Company has also set sights on Indiana and Kentucky cannabis marketplaces with the opening of two new CBD shops as it continues to expand its retail network.
While the stock did take a hit on the Company failing to seal a deal for Aphria, it has once again started surging in continuation of a bull trend that began late last year. A bounce off the $2.80 level has opened the door for the stock to make a run for this year highs.
The immediate resistance standing in the way of the emerging uptrend is the $4 mark, above which the stock should be able to make a run for 52-week highs. Conversely, a sell-off followed by a close below the $2.80 mark could result in Green Growth Brands plunging back to the $2 a share level.
What Does Green Growth Brands Do?
Green Growth Brands is a company seeking to dominate the cannabis market with a portfolio of emotion-driven brands. The Company boasts of a robust portfolio of cannabis products that it is using to target the broader cannabis market in the U.S.
Green Growth Brands market sentiments did take a hit after it became clear it would not be able to secure a deal to acquire Aphria. The takeover bid failed to meet the statutory minimum conditions prompting its termination. The Company had already entered into a definitive agreement to accelerate the termination of certain arrangements for consideration of $89 million payable in future
Under the terms of the deal, Green Growth Brands is to repurchase 27.3 million of its common shares held by GA opportunities. The shares are to be paid through a combination of cash and secured promissory note.
“We are bringing our offer to an end on good terms with Aphria and are excited to turn our focus to our CBD personal care and retail cannabis businesses. We are actively continuing to review other partnerships and M&A opportunities to accelerate the build-out of our Company,” said Peter Horvath, CEO of Green Growth Brands.
Retail Network Expansion
While Aphria blow is a big setback, Green Growth Brands remains well positioned for robust growth in the cannabis sector. The Company is increasingly expanding its retail footprint by expanding into new markets with vast opportunities for growth.
The Company has already set foot in Milwaukee with the opening a Seventh Sense Botanical Therapy CBD shop at Mayfair Mall. The new store brings to six, Seventh Sense Shop opened so far across the U.S. According to the CEO, Physical shops are the Company’s strongest marketing assets. Plans are underway to have at least 100 CBD shops by mid-summer.
The new store in Milwaukee will retail high-quality botanical therapy infused care and beauty products. On offer at the store will also be CBD-infused body lotions as well as muscle balm, body wash, and bath salts.
While Green Growth Brands is still reeling from the Aphria disappointment, one cannot dispute the fact that its long-term prospects are as solid as ever. Expansion into new markets allows the Company to diversify its retail footprint ideal for reducing reliance on a particular market.
The stock bouncing after a steep pullback also attests to renewed investor interest as the Aphria dust continues to settle. The stock is likely to continue surging after a recent bounce back as there is a lot of ground to cover ahead of 52-week highs.
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Disclosure: We have no position in GGBXF or APHA and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?
For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the…