Cannabis Corner: These three have expanded their markets

Article Excerpt

First, the good news: cannabis legalization will eventually lead to some great business successes. The bad news is that only a few of the multitude of cannabis stocks today will pay off for investors. Consumer cannabis demand is high, but growing and distributing it across multiple markets is more difficult. With “Cannabis Corner,” we focus on quality stocks that are most likely to emerge as winners in the “Wild West” of marijuana investing. VILLAGE FARMS $7.56 (Toronto symbol VFF; TSINetwork Rating: Speculative) (www.villagefarms.com; Shares outstanding: 66.0 million; Market cap: $496.0 million; TSI Cannabis Quality Rating [CQR]:) plans to buy the 41.3% of Pure Sunfarms that it doesn’t already own from Emerald Health Therapeutics. The purchase price is $79.9 million. The move will let Village Farms own all of one of the lowest-cost greenhouse cannabis producers in Canada, Pure Sunfarms has been profitable for six consecutive quarters. It also produces the leading dried flower brand with the Ontario Cannabis Store—the provincial wholesaler and only…

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