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Green Growth Brands Inc. (OTCMKTS: GGBXF) Recovers After Aphria Inc (NYSE: APHA) Blow

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Green Growth Brands

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.

GGBXF Daily Chart

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.

Recent Developments

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.

Bottom Line

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.

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Is Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) A Good Bet Right Now?

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Neptune Wellness Solutions

There is no doubt 2019 was a tough year for the hemp/cannabis businesses. However, there are a few hemp/cannabis stocks that still managed to make their investors proud. Neptune Wellness Solutions Inc (TSE:NEPT)(NASDAQ:NEPT) is one of those stocks. Investors who put their bet on Neptune at a time like this saw their investment increase 130% by July of last year.

Neptune Wellness Solutions is already off to a strong start in 2020. The stock has gained more than 15% in the past week alone. Looking at how Neptune has positioned itself in the hemp/cannabis market, you cannot dispute 2020 is shaping up to be a great year for the stock. Then you notice that Neptune insiders are deeply invested in the stock. Insiders own more than 17% of all shares in the company. The company’s market cap of $280 million shows that insiders alone have sunk $48 million in the stock.

You are about to find out more reasons why Neptune Wellness Solutions looks to be a good pick right now. But first, here’s what you should know about the company we’re discussing.

About Neptune Wellness Solutions

Neptune Wellness Solutions has been around since 1998 and is headquartered in Laval, Canada. It is engaged in the extraction, formulation, and packaging of value-added cannabis products for both Canadian and global markets.

This is shaping up to be Neptune’s year for a number of…

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Is Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) A Smart Pick?

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Tetra Bio-Pharma

Investors will remember that 2019 wasn’t a great year for cannabis stocks, especially Canadian stocks. Issues from uncertainty over Canada’s national elections to shortage of cannabis retail stores in Ontario greatly weighed on Canadian cannabis stocks last year. These problems are largely out of the way and investors can now spot cannabis stocks with a promising outlook in 2020. Tetra Bio-Pharma (CVE:TBP) (OTCMKTS:TBPMF) is one play poised for a big breakout in 2020 as its drug products go on sale.

Tetra Bio-Pharma is one of the most promising cannabis stocks in 2020 and investors have really warmed up to the stock. At $0.50, Tetra stock has already gained more than 60% year-to-date. But that is just the beginning and we feel there is a great story to tell here. First, however, it is important for investors to understand the company we’re discussing.

About Tetra Bio-Pharma

For investors who may have just come across Tetra Bio-Pharma for the very first time, this is a Canadian cannabis company. It is focused on developing cannabis-based drugs for a variety of conditions, including cancer.

Tetra Bio-Pharma about to begin commercializing its drug products

As a drug company, Tetra Bio-Pharma is insulated from many challenges that face conventional cannabis companies. For example, companies that make adult-use cannabis products must cope with cutthroat competition in the market. Moreover, Canadian cannabis companies have Continue Reading

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Why Investors Are Warming Up To Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF)

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Fire & Flower Holdings

The disastrous 2019 taught investors the importance of carefully screening cannabis stocks for great picks that can withstand industrywide shocks. That explains why investors are warming up to Fire & Flower Holdings Corp (TSE:FAF) (OTCMKTS:FFLWF) in 2020.

Fire & Flower Holdings has positioned itself to take full advantage of the recently expanded cannabis market under Cannabis 2.0. Investors are realizing that FFLWF is one pick that can make a huge difference in their cannabis portfolio. Fire & Flower Holdings has already gained more than 25% year-to-date, a testament to the strong investor interest in the stock in 2020.

About Fire & Flower Holdings

Fire & Flower Holdings is a Canadian cannabis company. It operates as a cannabis product retail chain. It operates a network of dozens of cannabis retail outlets in Canada. FFLWF currently has licenses to operate cannabis retail stores in Alberta and Saskatchewan provinces. In addition, it runs a cannabis distributor business in Saskatchewan.

Investors will no doubt remember that 2019 was a tough year for the cannabis sector, with a widespread collapse of many cannabis stocks big and small. That shows why in 2020 investors are looking for cannabis stocks that can deliver excellent returns and make them forget the pain of the past year. FFLWF has emerged as one of the favorite cannabis stock picks for investors early on in 2020. There are several reasons behind that and here are…

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