The cannabis space is on fire once again, with pot stocks racing ahead of the broad market as the growth theme lights up on new legislative and demand factors, including an increasing level of confidence that the US is heading for an eventual step of full legalization.
With that in mind, we take a look here at a handful of compelling names in the space, including: Sundial Growers Inc (NASDAQ:SNDL), FutureLand Corp (OTCMKTS:FUTL), and Village Farms International Inc (NASDAQ:VFF).
Sundial Growers Inc (NASDAQ:SNDL) is a licensed producer that crafts cannabis using state-of-the-art indoor facilities. The company cites its ‘craft-at-scale’ modular growing approach, award-winning genetics, and experienced master growers as the factors that set it apart from the competition in the rapidly growing cannabis space.
Sundial’s brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto and Grasslands. Our consumer-packaged goods experience enables us to not just grow quality cannabis, but also to create exceptional consumer and customer experiences.
Sundial Growers Inc (NASDAQ:SNDL) most recently announced that it has launched high-quality cannabis derivative products under the Top Leaf brand in response to rising consumer demands for solventless cannabis extracts. This most recent launch is consistent with Sundial’s focus on premium inhalables, following branded retail offerings of flower, pre-roll and vape cartridges.
“We made a strategic decision to produce these premium products based on demand for solventless, flavorful, pure, and potent cannabis concentrates from a growing group of consumers,” said Andrew Stordeur, President and Chief Operating Officer of Sundial. “Our control of the entire manufacturing process from cultivation to extraction enables us to deliver premium quality products on a consistent basis. Adding bubble hash and other advanced concentrates to our product portfolio will expand Sundial’s share of this rapidly expanding market segment.”
If you’re long this stock, then you’re liking how the stock has responded in recent action. SNDL shares have been moving higher over the past week overall, pushing about 4% to the upside on above average trading volume.
Sundial Growers Inc (NASDAQ:SNDL) managed to rope in revenues totaling $9.7M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -62%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($19.7M against $76.6M, respectively).
FutureLand Corp (OTCMKTS:FUTL) promulgates itself as a cannabis and hemp land leasing company based in Colorado and formed to capitalize on the emerging global cannabis market.
FutureLand focuses on target acquisition, zoning, license fulfillment, site plan preparation and financing of cannabis or hemp grow facilities throughout the United States.
FutureLand Corp (OTCMKTS:FUTL) has been dark of late in terms of its company communications, but shares of the stock have been on the move suggesting that some insider activity may be on the rise, which could mean some new catalysts are on the way.
The stock has been heavily shorted, and the fact that it’s on the move is a good sign. Shares are ripping in a breakout that has taken FUTL up nearly 2,000% in the past six weeks.
FutureLand Corp (OTCMKTS:FUTL) had no reported sales in its last quarterly financial data. But, as noted, some new information could be coming soon. And we would keep this one on the radar.
Village Farms International Inc (NASDAQ:VFF) bills itself as one of the largest and longest-operating greenhouse growers in North America. The Company leverages decades of experience in large-scale, low-cost intensive agriculture as a vertically integrated produce supplier to pursue high-value, high-growth plant-based Consumer Packaged Goods opportunities in cannabis and CBD in North America and select markets internationally.
The Company’s wholly-owned Canadian subsidiary, British-Columbia-based Pure Sunfarms, is one of the single largest cannabis operations in the world, the lowest-cost greenhouse producer and one of the best-selling brands in Canada, and has generated profitability for seven consecutive quarters.
Village Farms International Inc (NASDAQ:VFF) announced that it has repaid in full the C$19.9 million (approximately US$15.6 million) promissory note, plus accrued interest of C$621,534.25 (approximately US$486,849.78), that it originally issued to Emerald Health Therapeutics, Inc. as partial consideration for the November 2020 acquisition from Emerald of the 36,958,500 common shares of Pure Sunfarms Corp. that Village Farms did not own. Village Farms no longer owes any amounts to Emerald with respect to the Pure Sunfarms Transaction.
“The Altum team is making strong, steady progress on the execution of its business plan and we are pleased to be able to increase our equity stake in the company on similar terms to that our of original investment,” said Michael DeGiglio, CEO, Village Farms International. “Our international cannabis/CBD strategy is to target select emerging markets with significant long-term potential through partnerships with local experts who are early movers in their respective regions. Our investment in Altum represents a capital efficient means by which to participate in the significant opportunity in the Asia-Pacific region, which represents approximately one-third of the world’s GDP.”
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. Shares of the stock have powered higher over the past month, rallying roughly 31% in that time on strong overall action. Village Farms International Inc (NASDAQ:VFF) pulled in sales of $57.3M in its last reported quarterly financials, representing top line growth of 13.4%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($73M against $31.2M).
