6 Unlikely Stocks That Have Jumped on the Pot Bandwagon

cannabis

The ever-growing popularity of the cannabis industry has caught the attention of investors around the world who are hoping to cash in on the green wave. The buzz has also led several companies in various industries to jump on the pot bandwagon.

Alcohol and tobacco industry giants like Molson Coors (NYSE:TAP), Constellation Brands (NYSE:STZ), and Imperial Brands (OTCQX:IMBBF) have all made sizable investments into the cannabis industry, while smaller stocks have transitioned completely.

From mining exploration companies and solar energy providers to lifestyle, health, and beverage companies, here are some of the companies that have moved into marijuana in hopes of cashing in on this lucrative industry.

Mining Stocks Moving into Cannabis

It’s not surprising that a handful of junior mining stocks have decided to move into new territory if you consider the dire state of the mining industry in the last few years. The cannabis craze has drawn significant investor interest and, in turn, has left the mining industry lacking in much-needed capital.

One mining company that decided to cash in on cannabis is California Gold Mining Inc. (CSE:CGM) (OTCQX:CFGMF), a gold explorer with a flagship property in California that has a resource of nearly 900,000 ounces of gold. In April 2019, the company revealed that it will be building a 27,000 square foot CBD greenhouse on its gold property after securing $3 million USD in debt financing.

In July, California Gold Mining increased its hemp cultivation footprint when it acquired agricultural farmland in Illinois and immediately commenced outdoor cultivation of high-CBD industrial hemp across roughly 40 acres.

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Then there is Cann Global Ltd (ASX: CGB), which was formerly Queensland Bauxite, which transitioned from a mining exploration company to a medical marijuana and hemp company. The company first entered the cannabis space in 2017 when it acquired 55% of Medical Cannabis Limited. The company then bought the remaining stake in 2018 and entered into a licensing agreement with Medcan Australia.

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Health Stocks Joining the Pot Market

When it comes to health stocks moving into the cannabis space, Colorado-based beverage company New Age Beverages Corp. (NASDAQ:NBEV) is one that has seen a lot of success in the last year. New Age was in the business of manufacturing organic and healthy beverages for two years before the debut of its CBD-infused sparkling waters and relaxation teas in October 2018.

The company then went on to merge with Morinda Holdings, a Utah-based healthy lifestyles and beverage company with operations in more than 60 countries around the world, creating the world’s 40th largest non-alcoholic beverage company with $300 million in net revenue. In April 2019, New Age launched a line of CBD-infused topicals, which are sold worldwide.

The integration of cannabis products has proved to be a smart move for New Age Beverages. The company released its second-quarter financial results last month, which boasted an all-time high net revenue of $66.3 million, which is 397% higher than Q2 2018.

Then, there is nutritional health product company Youngevity International Inc (NASDAQ:YGYI), which is entering the marijuana market with its HempFX™ line of full-spectrum CBD products, which even includes CBD coffee.

Tech Stocks Riding the Green Wave

Even tech stocks are getting in on the green rush. One of these is Virtual Crypto Technologies Inc, a software developer that created a system that allows the buying and selling of crypto through POS systems, ATMs, tablets, mobile devices, and PCs.

The Israel-based company announced last October that it was launching CannabitPay Software Solution®, a real-time, cost-effective, point-of-sale downloadable software that allows cannabis dispensaries to take crypto payments.

Payments-as-a-service company Net Elements Inc. (NASDAQ:NETE) also saw an opportunity to capitalize on the pot market through ancillary services. In October, the company launched a secure and compliant payment processing offering that was designed specifically for cannabis companies.

In short, companies from virtually every industry have found a way to gain a stake in the multi-billion dollar cannabis market. It remains to be seen which companies will stand the test of time in this nascent industry, but you can’t fault them for trying.

Are there any unlikely cannabis stocks you have on your watchlist? Let us know in the comments!

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Featured Image: DepositPhotos © Fotofabrika