Last Thursday (June 28), a medical cannabis company with business in the US and Canada received a rating and one-year price predictions from one of the leading cannabis banking firms.

Canaccord Genuity started its coverage of Sunniva (CSE:SNN) off by slapping the company with a “Speculative Buy” rating on its stock and a one year price target of C$7.80. Sunniva’s previous closing price on Tuesday (July 3) was C$8.10.


Sunniva owns a late stage applicant to legally grow medical cannabis in Canada, with the plans to develop a 700,000 square feet greenhouse facility–the Sunniva Canada Campus– with a target production of 100,000 kilograms of cannabis product at this facility, according to the report.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

In addition to the Suniva Canada Campus the company  Sunniva is also focused in the California market with the construction of a greenhouse facility expected to produce an additional 100,000 kilograms of cannabis per year.

“Although we believe our individual valuations are built on relatively conservative assumptions, the core value driver of our model rests in the assumed market penetration Sunniva will ultimately be able to secure in California and Canada,” the note from Canaccord analyst Matt Bottomley said.

As part of its Q1 financial results, Sunniva indicated it had obtained a confirmation of readiness from Health Canada about its licensed producer (LP) application.

The company also owns Natural Health Services, a cannabis clinic operator with seven locations in Canada offering patient consultations and has a 95,000 patient base, according to the note.

In February Sunniva signed a supply agreement with Canopy Growth (TSX:WEED;NYSE:CGC) to provide 45,000 kilograms of dried cannabis annually. Leith Pedersen, president of Sunniva, said by making this partnership the company was “de-risking” its business model.

According to the data presented by the report the company holds a “SOTP” (sum-of-the-parts) valuation of C$13.08 per share.

Bottomley wrote he believes Sunniva will have to “secure a portion of its market share in its own branded products to cement a longer-term market position and to safeguard against margin compression.”

Canaccord cited the potential for the company to not achieve its projected production capacity as a significant risk for Sunniva’s Canadian operations.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

US interest for the company adds value due to right momentum in the country

Despite holding an interest in the often volatile US cannabis market, Canaccord believes the momentum is swinging right for the drug at the moment, particularly in California with the legalization of adult-use cannabis this year.

As a whole, cannabis companies with US assets have been forced to raise capital in the Canadian Securities Exchange (CSE) due to the lighter restrictions around the interests below the border.

During panel at the Vancouver edition of the International Cannabis Business Conference (ICBC) Anna Serin, director of listings development for the CSE, told the crowd over the past year 58 percent of the capital raised by CSE-listed companies, close to C$2 billion, was in cannabis.

Since the report was issued to investors last Thursday the company’s stock has increased in value by 4.65 percent and is finished Wednesday’s (July 4) trading session at a price of C$8.10 per share.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Ayurcann Holdings Corp. (CSE: AYUR) (the “Company” or “Ayurcann”) an integrated Canadian extraction company specializing in the processing of cannabis and hemp for the production of oils and various derivative products, announces the granting of stock options and restricted share units.

The Company has announced that it has granted incentive stock options to directors, officers, employees and consultants of the Company to purchase an aggregate of 1,000,100 common shares under the Company’s Stock Option Plan. Each option is exercisable at a price of $0.16 per common share, expires three years from the date of grant and vest six months from the date of the grant.

Keep reading... Show less

A planned business merger between two leading cannabis producers hit a small delay this week as a critical vote got moved.

Meanwhile, a cannabis retail operator elected to celebrate 420 by auctioning a cannabis-themed digital art piece using blockchain technology.

Keep reading... Show less

Partnerships with Minardi Law , Minorities for Medical Marijuana, CultivatED, and the Georgia Justice Project will include clinics and virtual events across Florida , Georgia , and Massachusetts

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today a series of expungment clinics located throughout south and central Florida as well as virtual events in Georgia and Massachusetts . The clinics are part of the Company’s celebration of the 50 th anniversary of 420.

Keep reading... Show less

Seth Rogen’s New Cannabis Brand are Now Available at Apothecarium Dispensaries in San Francisco , Berkeley and Capitola

The Apothecarium is offering cannabis from Houseplant, the cannabis lifestyle brand founded by Seth Rogen and Evan Goldberg at its five California dispensaries. The Apothecarium has three San Francisco locations (Castro, SOMA and Marina ) and one each in Berkeley and Capitola (outside of Santa Cruz ).

Keep reading... Show less