Shares of MedReleaf increased a huge 148 percent in 2017. Besides, the company issued the biggest Initial Public Offering (IPO) in North America. Ironically, the MedReleaf stock price slightly declined. Aurora Cannabis acquired MedReleaf for only $2.5 billion in an all-stock deal. It was one of the largest cannabis transactions so far. Reports stated the merger reinforces production capability from more than 32,200 to possibly more than 570,000 kilograms annually.
One probable reason for MedReleaf’s sluggish stock this year is the slight delay in the legalization of recreational weed. The Canadian government scheduled it for July, but this extended until October 17. Notwithstanding the postponement shows a substantial development potential for this enterprise. It continues to expand by adding another 164 acres in the province of Ontario. The purchase means a fully-subsidized production capacity of around 140,000 kg’s annually.
Before the merger with Aurora, MedReleaf forged an arrangement to allocate Quebec Province with at least 8,000 kilograms of adult cannabis every year. The manufacturer of marijuana pharma products made significant progress in the medical weed industry globally, according to published articles.
Sales of medical pot went up during the last quarter. Likewise, the company partnered with counterparts in Germany, Australia, and Brazil. MedReleaf garnered several awards like top licensed maker in the 2017 Lift Canadian Cannabis Awards. This Canada-based firm entered into an agreement with CannaMedical Pharma GMBH as their biggest supplier of medical marijuana.
MedReleaf launched a unique topical cream in the world market in October 2017. It became the very first licensed manufacturer to attain this milestone. The move was the response to patient demand for Cannabidiol topical solutions. The sector can attain significant growth in the United States and other countries. Incidentally, an office in Canada’s Parliament predicts MedReleaf’s capacity to gain a fair share of the dried weed market. This development can boost sales to roughly $1 billion yearly.
The stock may not have performed well during the last nine months. However, observers forecast a bounce back once adult cannabis becomes legal in Canada. The legalization will also push other stocks like Organigram, Canopy Growth, Aphria, PharmaCan Capital and Hydropothecary up.
MedReleaf maintains an advantage when it comes to production capacity. It also manifests a good chance in the world cannabis marketplace, for example, the transaction with CannaMedical helps MedReleaf draw near competitors with a foothold in countries like the Federal Republic of Germany.
MedReleaf seems a good buy among shares of Canadian marijuana pharmaceutical corporations. Even then, investors remain cautious about putting money in cannabis stocks. Risks are high. Possibilities and opportunities depend completely on how sales meet expectations.
Good Stake for Investors
Marijuana happens to be a commodity regardless of the excitement. Medical and adult weed will become commoditized long-term. The upside in this scenario will benefit the short-term prospects of MedReleaf. Likely investors willing to take a chance in the recreational or medical pot industry have a better chance with pharma firms like MedReleaf.
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