Cannabis Corner: Buy this profitable ‘cannabis 2.0’ leader

Article Excerpt

Consumer cannabis demand is high, but growing and distributing it across multiple markets is more difficult. Valens, in contrast, has now turned a profit by signing long-term contracts with marijuana producers to extract highly concentrated cannabis oil from cannabis flower. The company has also moved into the lucrative business of buying flower at the best price from those producers and making its own “white label” extracts. Producers and retailers then buy those products and put their own brands on them. All this saves its customers time and the big upfront cash outlays required to extract THC and CBD from flower in-house. Meanwhile, “Cannabis 2.0” is now here. That’s the legalization of a second wave of products, such as edibles, extracts and topicals, following Canada’s initial October 2018 legalization of cannabis. These 2.0 products also include cannabis-infused chocolates, cookies, soft chews, mints, tea and vapes. Most of those products use cannabis extracts, and that sets up Valens—and its investors—for stock price gains. VALENS GROWORKS CORP. $1.99 (Toronto…