Jan 11, 2021 (IAM Newswire via COMTEX) -- It's no secret that small caps offer the potential for greater returns for those who can recognize companies trading at discounts to their intrinsic values. But many small-caps are unknown, leaving investors with an information shortfall. One way to mend this problem is by attending conferences to learn more about them. One such small cap conference was held in virtual form in December by Benzinga. With several categories and industries, medical cannabis emerged with a need to be differentiated from regular cannabis companies and for good reason. Here are four small caps which are endorsing a medical versus recreational divide within the cannabis industry.
Avicanna /zigman2/quotes/213943528/composite AVCNF -4.22% is a Canadian vertically-integrated biotech biopharmaceutical company. Despite being Toronto-based, it is present also in the US, Europe and LATAM. Its hemp-derived products range across cosmetics, medical and pharmaceutical fields. More importantly, the company owns all intellectual property it is utilizing. Its established and proven low-cost vertical integration is what makes the company both organic and sustainable. Its R&D efforts began at Johnson and Johnson's /zigman2/quotes/201724570/composite JNJ -2.64% innovation center JLABS. Its hemp-derived cosmetics under the range skincare CBD derma have clinical trials like acne and anti-aging behind it with results undergoing publication. The company claims this is the only known CBD trial with human application programme data. Its medical cannabis 2.0 products including CBD and THC are easy use, consistent and have a pleasant flavor. They treat anxiety, depression, appetite and sleep disorders. Although secondary, these are all major clinical symptoms that are frequent in oncology and neurology patients. It is also one of the two companies that has the licence to operate in Colombia with plans to launch in the UK this year. 91% of medical cannabis products on the market are oil-based whereas Avicanna claims their formula is much more advanced. Its pharmaceutical drugs address a pipeline of rare diseases such as neuropathic pain and inflammation related to COVID-19. To sum up, this intellectual powerhouse has diversified, scalable and high margin revenue streams across several segments.
HempFusion Wellness Inc is a full spectrum CBD company that utilizes hemp plant with four brands in its portfolio. The company just completed its $17,000,000 IPO and commenced trading on the Toronto Stock Exchange. As the industry unfolds, this company is well positioned, taking the 2 [nd] largest cash position as a CBD company prior to its IPO. The company is aggressively expanding to doctor/practitioner and convenience channels. With a wide distribution channel including Amazon /zigman2/quotes/210331248/composite AMZN +1.17% , it covers 50 states. But the OTC-drug listed topical products are what separates them from others. The company differentiates itself with its certified organic oils. It is also part of largest US liver toxicology study ever done with ground-breaking research on CBD and human safety and is working with the EU on its application. The company claims to be the most compliant company in the industry.
Clever Leaves /zigman2/quotes/223394880/composite CLVR -4.56% is built around a very simple idea: to be the largest lowest cost cannabis company in the world but pharma quality cannabis production through its Colombian and Portuguese operations. It is best known for Latin America presence for medical cannabis in Colombia but it has a global cultivation footprint. The company went public through a SPAC in mid-December. It has the EU GMP certificate that only a few other companies including Aphria /zigman2/quotes/207425803/composite APHA -2.09% have. Also, it is counting on the first mover advantage in Europe, with the opportunity being even bigger if you count Russia. In April last year, it announced a LATAM supply agreement with Canopy Growth /zigman2/quotes/200603886/composite CGC -1.39% Corporation foreshadowing yet another B2B opportunity.
Khiron Life Sciences /zigman2/quotes/201704261/composite KHRNF +6.02% is a patient-focused global medical cannabis company from Latin America. This pureplay health and wellbeing company is the first company to reach more than 3,5000 medical prescriptions in Colombia, combining a traditional pharma approach, wholly owned clinics and telehealth solutions. Its vision is to reach 1 million patients and consumers by 2024. It is the first company to sell approved medical cannabis products in Peru through pharmacy chains. It focuses on six countries: Colombia where it is based, Mexico, Peru where it is already selling, Brazil, the UK and Germany. Its medical strategy consists of high quality cannabis products, doctor educations to drive prescriptions, wholly-owned clinics, accessible telehealth for all, focus on distribution and Khiero medical cannabis patient program in Peru and Colombia with more than 1,500 subscribers that 94% of patients found beneficial so far.
Despite a global pandemic, many cannabis stocks had a great run in 2020 with some companies were even lucky enough to be deemed an essential business during the lockdowns. With greater expansion on the horizon for the cannabis sector, the life-changing potential for medical cannabis could be even greater. The above four small caps seem to have what it takes to catch that wave.
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