CANADA'S HIDDEN PENNY POT STOCK OPPORTUNITY - Amazon S3
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CANADA’S HIDDEN
PENNY POT STOCK
OPPORTUNITY
SEVEN FIGURE
PUBLISHING
Canada’s Hidden Penny Pot Stock Opportunity
Publicly traded marijuana companies continue to ride a wave of optimism. Before the decade is out, pot could be
on its way to being legal in many more states…
When that happens, the tiny pioneers of this market could balloon into industry giants — vastly rewarding anyone
who was brave enough to invest at the start of the wave.
But you don’t have to wait for other state governments to get their acts together to benefit from the next marijuana
investment surge. In fact, I predict the next big pop could happen in a matter of months, even weeks.
When it does, stocks that are trading today for just a few dollars, even pennies, could soar 773%… 1,120%…
maybe even as high as 9,108%. Of course, your only chance to see these kind of gains is to buy the stocks before
they take off.
The only hitch is that they don’t trade on the major U.S. stock exchanges.
That’s because the next major breakthrough in marijuana legalization is set to occur north of our borders…
Canada Moves Toward Full Legalization
Canada has a reputation for being more liberal than the United States… and its views on marijuana are no exception.
In 2001, Health Canada — essentially the Canadian equivalent of the Food and Drug Administration — approved
marijuana for medical use.
Lawmakers’ attempts to make cannabis legal for recreational use failed in 2003 and 2004. But legislation to increase
penalties for marijuana use also failed to make headway.
Things finally took a major turn in 2015, when Canada’s Liberal Party won control of Parliament. One of its
platforms was to legalize marijuana.
In the summer of 2016, Prime Minister Justin Trudeau formed a commission to map a path towards legalization.
In December 2016, it released a 106-page report with a framework for allowing marijuana for recreational use.
The report recognizes the need for some regulation, mostly to keep marijuana away from minors. But the com-
mittee believes they’ve figured out how to, “strike a balance between implementing appropriate restrictions, in
order to minimize the harms associated with cannabis use, and providing adult access to a regulated supply of
cannabis while reducing the scope and scale of the illicit market.”
Fast forward to this year, Canada is set to go full legal come July.
Smart investors are already preparing for the opportunity, taking advantage of the unique market Canada’s mari-
juana laws have already created.
An Exploding Customer Base
Health Canada’s 2001 decision to allow medical marijuana led to the creation of legal providers — companies
licensed to grow and sell marijuana products. At first, they were restricted to selling dried marijuana leaves, but
by 2015 the government allowed the sale of fresh buds and oils extracted from the plants.
Today there are 38 companies with government permission to grow and/or sell marijuana. Many have made their
2way onto Canada’s stock exchange, giving investors a chance to profit from their operations.
But there are several factors that have made these investments questionable. The first is the customer base. You
must have a valid prescription before you can buy from a medical marijuana dealer, and you have to register with
the company. That makes for a relatively small list of potential clients.
Despite that hurdle, the customer growth rate has been incredible. At last count, Health Canada reported at the
end of last year there were almost 130,000 registered users of medical marijuana. Which is a 32% increase since
the last recorded number of 98,000 last reported in September 2016.
That’s a lot of new revenue heading to just 38 companies. Now just imagine what will happen to revenues if
Canadians don’t need a prescription!
But there’s an even better reason to think these companies will benefit from legalization, because it will help with
another big problem distributors have — competition.
No More Illegal Competitors
As it stands, legal marijuana businesses are mail-order only. Meanwhile, patients are free to grow the marijuana
they need on their own… a right Canada’s Supreme Court upheld in 2016.
And, of course, there are plenty of illicit dealers out there who can sell their products on demand. In some
more-tolerant Canadian cities, stores selling marijuana products have cropped up. They’re technically illegal, but
authorities look the other way. So even someone with a valid medical prescription might prefer picking up pot
now instead of waiting a few days for delivery.
But these off-the-books dealers would probably come to an end with any proposed legalization. The framework
laid out by Trudeau’s committee stresses the importance of regulating the market as much as possible, which
would mean even stronger penalties for flouting the system.
So the licensed marijuana dealers would have an automatic leg-up on their illicit competition. The framework also
recommends the establishment of storefronts — giving licensed producers more direct access to their customers.
The framework also makes allowances for people to grow cannabis at home. But licensed companies could see
this as an opportunity — selling the tools to help folks cultivate the plant on their own. In fact, the committee
suggests regulations create “a legal source for starting materials (e.g., seeds, seedlings, plant cuttings).”
What’s a better place for starting materials than the companies that are already legally growing the stuff?
Of course, without knowing the actual proposed legislation, this is all speculative. And that’s good news for you,
because it means investors haven’t bid Canada’s public marijuana stocks to ridiculous heights yet.
All it will take is one piece of good news…
Why Canada’s Marijuana Stocks Will Skyrocket (Again)
Canada’s public marijuana companies are highly reactive to any news that points toward legalization.
They spiked when Trudeau affirmed he was in favor of allowing marijuana for recreational use. His election
caused another upward blip, as did the announcement that he had formed a committee to study the matter.
Obviously the committee’s final results bolstered investors’ confidence as well.
But don’t think you’ve missed out on all the profits yet. Remember, as of this writing, no one has proposed any
legislation. The people who’ve bought the marijuana stocks are just speculating. The rest of the investment world
is waiting for more confirmation before getting in.
3And that’s why you still have an opportunity to buy these stocks at a good price. All of our trend analysis has us
convinced that nothing can stop the legalization process.
When it happens, it’s going to open up a huge market.
Right now, Canada’s medical marijuana industry is valued at over $200 million. And while it’s tough to put a
number on the illegal market, some put the total marijuana market at C$3 to C$4 billion.
To get an idea of how quickly sales could ramp if legalization occurs, we can look at Colorado in the United
States. Voters passed a law allowing marijuana for recreational use in 2012, and the first legal sales started in
January 2014.
According to ArcView Market Research, Colorado’s retail marijuana market brought in $675 million in revenue
in 2014. By 2016, sales had nearly doubled to $1.3 billion.
There’s every reason to believe legalization in Canada would lead to even better results. After all, Colorado is
just one state… Canada is an entire country. By some estimates, the Canadian marijuana market could balloon to
C$5 billion in short order. CIBC projects that sales could grow to top C$10 billion a year.
That’s a lot of room for growth!
Of course, those sales won’t be equally distributed among the licensed marijuana producers. Some stand to make
more than others. So we’ve sorted through the list of publicly traded marijuana companies to pinpoint the ones
that haven’t been overbought yet still offer oversized profit potential.
But before I reveal their names, I should warn you that investing in these Canadian companies might be slightly
more challenging than investing in American marijuana stocks.
How to Buy Canadian
The four companies I have for you today don’t trade on the major U.S. stock exchanges. Instead, they all trade on
the Canadian stock exchange.
The Canadian stock exchange has two major components. There’s the Toronto Stock Exchange, where shares of
larger, more established companies generally trade. Smaller or emerging companies are generally listed on the TSX
Venture Exchange. (In some ways, it’s similar to how we have the New York Stock Exchange and NASDAQ.)
Unfortunately, not every American broker lets you buy stocks on foreign exchanges. You’ll have to check with
your brokerage company to see if they do. In some cases, you may need to open another account. There may also
be additional commissions and fees for trading Canadian stocks.
If your broker doesn’t allow you to buy and sell foreign stocks directly, check to see if they allow you to trade
over-the-counter stocks. All of our recommendations today offer over-the-counter alternatives.
Over-the-counter stocks tend to have a bad reputation, because they’re usually for companies that can’t meet the
requirements to list on a regulated exchange. But listing on a U.S. exchange is also pricey, so foreign companies
often use the OTC markets as a way to reach U.S. investors without jumping through a lot of hoops.
OTC stocks have symbols just like U.S. stocks do. But they tend to be five letters long, and the letters often seem
chosen at random. You could probably guess that AAPL is the U.S. stock symbol for Apple, or that MSFT is for
Microsoft… but I doubt you could figure out that TWMJF is the symbol for Canopy Growth Corp.
While the behind-the-scenes mechanics of buying over-the-counter stocks are a little different than buying stocks
listed on major exchanges, you don’t have the sweat the details. Your broker should handle it all for you.
Keep in mind that your broker may charge you more to buy OTC stocks, and there may be other restrictions. For
instance, Canada’s stock exchanges require you to buy shares in specific increments known as a board lot size.
4That is, instead of buying, say, 75 shares, you may need to buy them in 100-share increments. A stock’s board lot
size is based on its share price.
You’ll also need to keep the currency exchange rate in mind. You can buy and sell the OTC shares using U.S.
dollars, but the shares themselves will be priced in Canadian dollars. So your total costs and profits will depend
on the stock’s Canadian price and the value of a U.S. dollar against the Canadian dollar when you buy and sell.
Finally, when you buy over-the-counter, you will technically be buying the actual shares of the Canadian company.
But that doesn’t mean the OTC share prices will exactly mirror their price on the Canadian stock exchange — and
it’s not just because of the currency differences. U.S. brokers often mark up the OTC share price a bit to cover the
costs of trading foreign stocks.
Still, the prices you see on the OTC markets shouldn’t be too far off from what you see on the Canadian ex-
changes. (Again, adjusting for the exchange rate.)
Ultimately, whether you buy the shares on the Canadian stock exchange or the U.S. OTC markets is up to you
and your broker. While we’ll give you the Canadian symbol, our pricing advice will be for the OTC shares, and
therefore in U.S. dollars.
With that out of the way, here are four Canadian pot companies you can consider buying before marijuana legali-
zation sends them soaring into the stratosphere.
Hidden Penny Pot Stock #1: Canopy Growth
TSX Symbol: CGC; OTC Symbol: TWMJF
To be fair, Canopy Growth doesn’t really qualify as a penny stock. In fact, with a market cap approaching C$1
billion, it barely counts as a small-cap stock.
Still, if you want to make money from Canadian marijuana companies, Canopy is the best place to start.
It was one of the first companies licensed to legally sell medical marijuana. It was also one of the first marijuana
companies to be listed on the Canadian stock exchange.
In 2015, when Trudeau was first talking about legalization, shares were trading for $1.54. As excitement built,
they reached a high of $13.45 — a 773% gain in about a year. While they have fallen back a bit, Canopy is still
the largest public medical marijuana company.
Canopy offers a variety of dried marijuana and oils under different brand names. Its Tweed brand is considered
one of the world’s most recognized marijuana brands… similar to how Marlboro is a well-recognized cigarette
brand. Another brand focuses on the therapeutic benefits of marijuana, with products engineered to deliver a
uniform “high” every time.
Canopy even has a brand with a celebrity spokesman, marketing products featuring rapper and musician
Snoop Dogg.
The fact that it has so many different brands is important. While the company can only legally sell its products
to people with medical marijuana prescriptions, it’s clearly laying the groundwork for the retail market. After all,
Snoop Dogg — a noted proponent of legalization —probably isn’t someone that folks associate with pain relief.
In addition, the company has set up store fronts to help people fulfill their medical marijuana prescriptions. It
won’t take much work to convert them to full-on retail stores if Canada’s Parliament votes the way we expect it to.
While it waits, the company has been raking in revenue — with its most recent numbers coming in 22% higher
than the previous quarter. Even better, the company reported a profit… one of the few marijuana companies that
can make that claim.
5In December 2016, it announced plans to acquire Mettrum Health Corp., adding its assets — including licenses
— to its own. The move instantly boosts Canopy’s revenues 50%.
And Canopy is looking to expand beyond Canada. In July 2016, it received permission to export medical marijuana
to Germany. Considering that Germany just approved recreational marijuana, Canopy already has a leg up getting
its products on German shelves.
The company is also expanding into Brazil and Australia. So even if Canada backs off on full legalization, Canopy
still has clear paths to growth.
Action to take: Consider buying Canopy Growth (OTC: TWMJF).
Hidden Penny Pot Stock #2: Aphria Inc.
TSX Symbol: APH; OTC Symbol: APHQF
Aphria wasn’t one of the first companies authorized to sell medical marijuana, nor was it the first to publicly trade.
It was, however, the first Canadian marijuana stock to report positive cash flow as well as back-to-back profitable
quarters. And its first 2018 reported numbers show that it has no signs of slowing down anytime soon.
But what we really like about Aphria is its price. Despite its incredible growth, the company’s shares and market
cap are half what Canopy trades for.
The company sells several varieties of dried cannabis and cannabis oils. Unlike Canopy, it is strictly focused on
marijuana’s medicinal value. Each product is clearly labeled to show how much tetrahydrocannabinol (THC) and
cannabidiol its plants are bred to contain.
Both are cannabinoids that are affect the human body. THC is generally the one associated with being “high.”
Aphria sells marijuana with cannabidol but little-to-no THC. That means its customers can enjoy marijuana’s
therapeutics effects without the usual side effects of smoking pot.
Another advantage Aphria has is that a majority of its plants are grown in greenhouses. Many other marijuana
producers use practically windowless warehouses, growing their plants under bright lights. But Aphria saves
money using natural sunlight — making it one of the lowest-cost public marijuana companies you can find. It
continues to add to its acreage, giving it the ability to boost its inventory.
With plenty of supply and low costs, it can pass the savings along to customers. That, plus its award-winning
customer service, should mean a steady stream of new clients for a long time to come.
The only real question is how well it would be able to capture the recreational market.
There’s no strong indication that it’s thinking of entering that space. But it shouldn’t have much of a problem
pivoting that way when the time comes. It already has a reputation for selling a quality product at a lower price
and making its customers happy.
That could generate the kind of word-of-mouth that will power even more growth if full legalization becomes a reality.
Action to take: Consider buying Aphria Inc. (OTC: APHQF).
Hidden Penny Pot Stock #3: Aurora Cannabis
TSX Symbol: ACB; OTC Symbol: ACBFF
Like Aphria, Aurora Cannabis boasts low production costs. But it’s not a matter of how Aurora grows its product;
it’s where.
6The company built Canada’s second-largest marijuana facility in rural Alberta. That lets it take advantage of
cheaper water, electricity and tax rates — while claiming some of the province’s tax credits for farmers.
So far, Aurora is the only marijuana company with a production facility in Alberta. Not surprisingly, it’s building
a second location in Alberta — this time at the Edmonton International Airport. It will not only benefit from the
abundant infrastructure surrounding the airport, but it also puts it literally inside a major distribution hub.
The company offers a variety of dry marijuana blends, each boasting different levels of THC and cannabidiol. It
does not yet offer anything else, such as marijuana oils, which limits its potential customer base. (Remember, some
patients prefer ingesting marijuana to smoking it.) But in January 2017, Aurora received a license to produce and
sell oils and hopes to have the products ready to market soon.
The company also seems to putting things in place to take advantage of the retail market as soon as possible.
Over the summer of 2016, Aurora purchased CanvasRX, which counsels patients on marijuana use. It currently
has about 25 locations throughout Canada, and it’s benefited from the rapid rise in the number of people seeking
medical marijuana.
But it’s not hard to imagine these “knowledge centers” becoming full-blown retail outlets if Canada’s government
approves recreational marijuana.
In addition, Aurora is the first Canadian medical marijuana company to create a smartphone app. It lets customers
learn about Aurora’s products and reorder their prescriptions wherever they happen to be. At last count, 17,000
people had downloaded the app, and the company noticed that phone orders dropped 33% soon after. Not only
does that lower its customer service costs, but it could also become an important tool for recreational smokers to
buy their pot.
Of course, all of this innovation and growth comes at a price — but it looks like that price may be finally paying
off. They reported $8.2 million in revenues for Q1 of 2018 and a total of 2,880 active registered patients.
According to the company’s CEO “Aurora is performing brilliantly, with powerful domestic and international
revenue growth, record harvests, decreasing per-gram production costs, industry-leading integration of technology,
and exceptional execution, which is a testament to the outstanding team we’ve assembled”
With all the potential and confidence here, it’s safe to say that they’re a great way to play the canadian cannabis
market.
Action to take: Consider buying Aurora Cannabis (OTC: ACBFF).
Hidden Penny Pot Stock #4: Marapharm Ventures
TSX Symbol: MDM; OTC Symbol: MRPHF
We’ll be completely honest with you — Marapharm Ventures is the riskiest idea in this report. But that risk is
also the reason you can pick up the OTC shares for under $1. The risk comes from the fact that Marapharm
is currently more of a business plan than an actual business. It is building production facilities and acquiring
licenses to sell medical marijuana in Canada and the United States. So unlike the other companies in this report,
it has no real revenue to speak of yet.
Marapharm will operate mostly as a holding company. That is, it will oversee various subsidiaries. Among them
is Maragold, a line of products — including shampoos and body lotions — that are infused with marijuana oils.
It has also has a division focused on automatic vending machines that will allow people to buy marijuana just as
easily as they buy sodas. It expects to receive 2 million of the machines by the end of January 2017.
The company recently acquired licenses and facilities in California, where pot is already legal for recreational use. It ex-
pects those deals to close soon, meaning it should start producing soon. It is also awaiting approval to build facilities in
7Washington state and Nevada. Those production warehouses will use vertical farming techniques, which help maximize
crop yields. It has a letter of intent to furnish medical marijuana to three distributors in Nevada.
With so little concrete information to go on, however, Marapharm is tough to recommend. Its business strategy
seems solid, and its commitment to innovation — including vertical farming and automated vending machines —
bode well for capturing market share. Its California operations will give it experience in the retail market, which
should help it when Canada inevitably votes for full legalization down the road.
So if you decide to buy this stock, you could see tremendous profits as it ramps up operations. Just expect a volatile
ride, and pay attention to the company’s news to see if there are any potential hiccups that will cause Marapharm to
fall behind the pack.
Action to take: Consider buying Marapharm Ventures (OTC: MRPHF).
Keep in mind that these stocks are bonus suggestions for our most valued readers. We will not be tracking them
or updating them in Technology Profits Confidential. So please explore them further before investing, make sure
you understand the risks and don’t use money you can’t afford to lose.
Also remember that we’re focusing on the U.S. over-the-counter shares because they should be easier for you
to buy. But they also may be less liquid than the Canadian shares, and therefore more volatile. If you decide to
invest in them, try to buy in small batches to avoid causing artificial price spikes.
And always be on the lookout for a good exit price. When Canada does go in favor of full legalization, these
stocks will quickly spike. Once that happens, a correction may not be too far behind… so look for any signs the
wave is cresting, then get out.
Thanks once again for becoming a lifetime member of Technology Profits Confidential. Stay tuned for your next
regular issue and alert!
To a bright future,
Ray Blanco
Copyright by Seven Figure Publishing a division of Agora Financial, LLC. 1117 St. Paul Street, Baltimore, MD 21201. All rights reserved. No
part of this report may be reproduced by any means or for any reason without the consent of the publisher. The information contained herein
is obtained from sources believed to be reliable; however, its accuracy cannot be guaranteed.
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