FAQ

The potential for new disease research and treatments is expanding thanks to the global adoption of marijuana for medical purposes.

As more countries open the doors to the use and investigation of cannabis, medical applications for the drug are set to expand — indeed, the substance has already shown much promise.

However, in terms of treating skin cancer patients, currently the promise of cannabis outpaces any medically confirmed results or applications.

Though there may be individual cases crediting the drug, cannabis and its derivatives are not being applied to treat skin cancer — at least not yet. Read on to learn about the current situation and future possibilities.

Skin cancer, cannabis and medical research

According to the American Cancer Society, skin cancer is the most common type of cancer, accounting for over 5 million cases per year. This category holds many different variations, but the main three types are basal cell carcinomas, squamous cell carcinomas and melanomas; the rest are considered rare.

Melanomas develop in specific areas like the neck and face and can be more serious than their counterparts. Basal and squamous cancer cells, on the other hand, develop based on a person’s sun exposure and mostly appear on the head and neck.

The Canadian Cancer Society states that treatments for non-melanoma skin cancer include surgery, radiation therapy, photodynamic therapy and drug therapy, including the use of topicals.

In the future, cannabis and cancer could be paired up as more research across the globe begins to take place and companies look for new medications and formulations, boosted by the early successes of the drug.

Changes are happening slowly, with one serious improvement being when GW Pharmaceuticals (NASDAQ:GWPH) obtained approval in the US for its cannabidiol (CBD) solution, which treats seizures associated with Lennox-Gastaut syndrome or Dravet syndrome in toddlers.

After going through its clinical trials, the company’s Epidiolex drug received approval from the US Food and Drug Administration, signaling that top medical agencies are ready to confirm the medical prowess of cannabis and its derivatives for the benefit of patients.

Cannabis entering the skincare space

Looking more specifically at cannabis and skin ailments, the National Eczema Association has vouched for CBD as an option in the treatment of eczema, a skin disease that affects over 30 million people in the US.

“It has long been observed that cannabinoids possess anti-inflammatory, antimicrobial and anti-itch qualities,” the Independent reported.

A study from the the University of Colorado School of Medicine is looking further into the use of CBD for patients with psoriasis or eczema who have tried using topical steroids or topical immunomodulators.

Robert Dellavalle, professor of dermatology with the University of Colorado, told Inside Science that CBD products are growing in popularity, but the results are not being collected as properly as they could be.

“I believe it’s a wide-open horizon with tremendous potential that needs to be investigated, but there are a number of regulatory hurdles that need to be overcome and that’s where we are,” he said.

A medical study from the University of Colorado’s Anschutz Medical Campus shows the anti-inflammatory sensibilities of cannabinoids are the main reason why cannabis may be potent in combating skin diseases.

As part of its guide for healthcare practitioners, Tilray (NASDAQ:TLRY) indicates that medical cannabis could aid patients with inflammatory skin diseases such as dermatitis, psoriasis and pruritus.

“And while this research is still relatively formative, the results achieved so far clearly indicate its value and the promising potential of cannabis as effective medicine,” Tilray states.

Dave Berg, chief technology officer for software company Strainprint, told the Investing News Network the lack of sophisticated research has impacted the development of novel therapies for patients using cannabis.

“It’s been very difficult for people to study cannabis in a clinical way, but there’s been a ton observational data … There’s no really strong observational data set that allows us to make proper decisions,” Berg said.

In an effort to increase the research options available for cannabis, the Canadian federal government announced in 2018 that it would spend C$10 million over five years in order to assess the impact of cannabis use on the mental health of Canadians.

The government also promised C$10 million to the Canadian Center on Substance Use and Addiction for research purposes.

CBD skincare products getting traction

Amid developments geared at solving specific skin issues, more general CBD skincare products are also gaining popularity among many consumers.

For example, the introduction of cosmetics with cannabis elements, supported by Canadian licensed producers, is another upcoming element for the skin treatment segment of consumers. While not medical, this avenue does offer more options in terms of cannabis uses.

The endorsement from consumers for CBD ointments and other topicals for skincare has been documented with multiple products launched in the fractured US cannabis market.

One downside of the growth in these products is that it has led companies to make more and more claims about how these items can help with skin conditions. One study from the Journal of the American Medical Association warns that CBD products are often mislabeled online.

Takeaway on cannabis and skin cancer

In order for skin cancer patients to see the potential benefits from treatment with medical cannabis, much still has to change in Canada and abroad.

As the medical and recreational sections of the cannabis space continue drifting apart thanks to legalization efforts, the medical space should get more time to properly research and investigate the drug’s applications.

The early position CBD has gained in terms of skin maintenance and treatment could lead to further research on its impact on more serious diseases.

What’s more, GW Pharmaceuticals’ success, along with increased awareness of the medical benefits of cannabis, is moving the needle on research efforts geared at finding out how capable the drug will be in the medical space.

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The growth of the cannabis industry has made it possible for companies to offer many different investment opportunities through the major exchanges in Canada.

Previously known as the Canadian Venture Exchange, the TSX Venture Exchange is the sibling of Canada’s main listings board, the larger Toronto Stock Exchange.

For those interested in investing in cannabis companies, this exchange offers a variety of cannabis-related businesses, from growers to biotech companies looking for cannabinoid therapies.

Here the Investing News Network offers investors a growing list of all cannabis-related companies listed on the TSXV. Read on to learn more about them and their businesses.

48North (TSXV:NRTH)

This company is a marijuana producer looking to offer a variety of products for the recreational market in Canada, including for the health and wellness industry. 48North is a licensed outdoor grower of cannabis.

Auxly Cannabis Group (TSXV:XLY,OTCQX:CBWTF)

Created by Chuck Rifici, co-founder of Tweed, Auxly Cannabis Group operates as a cannabis streaming investment firm looking to boost various plays related to the sector.

Avricore Health (TSXV:AVCR)

While Avricore Health operates as a healthcare technology company, in 2017 the firm made a deal with Emerald Health Therapeutics (TSXV:EMH,OTCQX:EMHTF) for the right to develop and sell endocannabinoid products in Canada to licensed pharmacies.

CanadaBis Capital (TSXV:CANB)

This cannabis company is targeting the Canadian market through a business model that is focused on cultivation, research, product development, retail and hemp.

Emerald Health Therapeutics

This Canadian cannabis company holds a variety of growing assets in the country. The firm holds a 50/50 joint venture for the management of a grower in BC with Village Farms International (TSX:VFF,NASDAQ:VFF).

EnWave (TSXV:ENW,OTC Pink:NWVCF)

EnWave is a technology company that has centered itself in the cannabis business thanks to its Radiant Energy Vacuum drying technology for organic materials. It effectively decreases the time from the harvest to the sale of cannabis products.

Elixxer (TSXV:ELXR,OTCQB:ELIXF)

Through its partners, investment firm Elixxer presently has significant interests in Australia, Jamaica, Switzerland, Italy and Canada.

Eve & Co. (TSXV:EVE,OTCQX:EEVVF)

Eve & Co. is a Canadian cannabis producer that, thanks to its subsidiary Natural MedCo, is targeting female consumers, specifically with premier brands.

Experion Holdings (TSXV:EXP,OTCQB:EXPFF)

Formerly known as Viridium Pacific Group, this cannabis investment firm holds a portfolio of assets, including its licensed producer Experion Biotechnologies in BC.

The Flowr Corporation (TSXV:FLWR,OTC Pink:FLWPF)

The Flowr Corporation is a vertically integrated cannabis company working on the cultivation and sale of medical and recreational marijuana in Canada.

FluroTech (TSXV:TEST,OTCQB:FLURF)

FluroTech is a technology company working on a cost-effective testing platform for the cannabis industry at large. The company’s proprietary CompleTest employs fluorescence spectroscopy technology to measure the specific contents of the product.

GTEC Holdings (TSXV:GETC,OTCQB:GGTTF)

This Kelowna-based cannabis company is vertically integrated, with operations in the cultivation, extraction and analytical testing sectors. The company is also pursuing retail operations through various investments.

Harvest One Cannabis (TSXV:HVT,OTCQX:HRVOF)

Harvest One Cannabis is a cannabis company with production and assets spread across Canada, Europe, Israel and Australia. The company gains its reach thanks to its three subsidiaries: United Greeneries, Satipharm and Dream Products.

Hill Street Beverage Company (TSXV:BEER)

This beverage maker has made its name thanks to its development of non-alcoholic beverages. Now the firm will offer consumers cannabis-infused drinks.

INDIVA (TSXV:NDVA,OTCQX:NDVAF)

INDIVA is a company focused on the supply of medical cannabis. Through an acquisition, it holds a licensed producer with an indoor cannabis facility in Ontario.

Khiron Life Sciences (TSXV:KHRN,OTCQB:KHRNF)

Khiron Life Sciences is a Colombia-based cannabis company raising capital in Canada. The firm has declared that it will seek to expand its presence through Latin America, including Mexico.

Meta Growth (TSXV:META)

This company is a retail operator managing cannabis shops across Canada. Meta Growth manages two recreational store brands: Meta Cannabis Supply and NewLeaf Cannabis.

Namaste Technologies (TSXV:N,OTCQB:NXTTF)

After a tumultuous management change, Namaste Technologies has centered back on its investments and the development of its marijuana play, which includes its online platform of cannabis consumer information.

Naturally Splendid Enterprises (TSXV:NSP,OTCQB:NSPDF)

Naturally Splendid Enterprises is a biotech company developing hemp products for consumers in the health and wellness space. It plans to pursue a stake in the edible cannabidiol market as well.

Pharmacielo (TSXV:PCLO,OTCQX:PCLOF)

Pharmacielo is another cannabis company originally from Colombia raising capital in the Canadian markets. The company is headquartered in Canada, but operates part of its marijuana growing in Colombia.

Radient Technologies (TSXV:RTI,OTCQX:RDDTF)

Radient Technologies is an extraction technology company that has dabbled in the cannabis sector thanks to a partnership with licensed producer Aurora Cannabis (TSX:ACB,NYSE:ACB).

Relevium Technologies (TSXV:RLV,OTC Pink:RLLVF)

Thanks to its subsidiary Biocannabix, this company has a cannabis play in the development of pharmaceutical-grade products infused with cannabinoid formulations.

SugarBud Craft Growers (TSXV:SUGR)

Like some other Canadian cannabis producers, this Alberta company specializes in growing and developing craft-style premium cannabis products.

Target Capital (TSXV:TCI)

Doing business as CBi2 Capital, this Alberta-based company’s investment strategy focuses on developing and managing a diversified portfolio of predominantly early stage cannabis opportunities.

Tetra Bio-Pharma (TSXV:TBP,OTCQB:TBPMF)

Tetra Bio-Pharma is researching and developing medicines based on cannabis and its elements.

Therma Bright (TSXV:THRM)

Therma Bright is a medical device company that has a subsidiary seeking to carve up a space in the technology space for medical and recreational marijuana thanks to its pain relief device.

WeedMD (TSXV:WMD,OTCQX:WDDMF)

WeedMD is another Canadian cannabis producer making product for the medical and recreational markets in Canada. Its subsidiaries include WeedMD Rx and CX Industries.

YSS (TSXV:YSS,OTC Pink:YSSCF)

YSS operates as an adult-use cannabis retailer with 17 stores in Canada.

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Cannabis stocks are getting a lot of attention, but what about cannabis exchange-traded funds (ETFs)? 

Now that the cannabis industry is beginning to mature, these marijuana-focused investment vehicles have become a budding part of the overall financial market.

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The marijuana sector has experienced highs and lows over the past few years, with some cannabis stocks performing better than others.

Both new and sophisticated investors are interested in the cannabis market — legal marijuana has opened the doors for many new players in the industry looking to expand their investment options.

But before any investor makes the decision to buy shares in the cannabis stock market, there are a number of key decisions that need to be made.

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The goal of the Investing News Network (INN) is to educate investors and help them make key decisions with respect to their portfolios. To that end, we asked experts in the cannabis industry some of the most important questions to better understand how to invest in a cannabis stock. Here’s what they said.

How to invest in a cannabis stock: Does the company have a license?

One of the most crucial — if not the most crucial — components of any cannabis company is the type of license it may hold or a license it could be applying for in the future.

Following an arduous review process, Canadian companies can qualify to obtain licensed producer status from Health Canada. Companies can produce products for the medical and recreational spaces.

In order to capture the recreational marijuana market, a producer will need to sign a supply agreement with a province so its cannabis products can find a space on store shelves or online.

Going through the application process with Health Canada is intense, and the government body increased its initial requirements in 2019 when it announced that marijuana grower applicants will have to own a fully built site that already meets the health agency’s standards.

Health Canada said that after reviewing its licensing process, the government found its resources were being mismanaged and elected to enforce stricter initial standards for producer applicants.

Sean Gercsak, an investment advisor with Canaccord Genuity Group (TSX:CF,OTC Pink:CCORF), said licensed producers in Canada enjoyed impressive share price gains during the ramp up to marijuana legalization in October 2018.

According to Mason Brown, a director with Stoic Advisory, licenses are good indicators of where a company may be located in the marijuana supply chain.

The knowledge of what type of license — if any at all — a company holds can paint a clearer picture of where it is heading and if it’s worth investing in.

invictusmd-lo-rez-web_-blackfont1623x420-e1440617697416Invictus MD (TSXV:IMH  OTC: IVITF) is a cannabis company which represents a platform of licensed producers, under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”), dedicated to providing high-quality, regulated pharma-grade cannabis for medical and recreational use. Our growers are supported by over 250 acres of buildable property with full access to our team of industry-leading horticulturists, biochemists, and project managers.   Successful Realized Return on Investment.

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“Depending on the stage of the licensing process, generating revenue could be anywhere from days to months to years away,” Brown said.

How to invest in a cannabis stock: Does the management team have experience?

Like any other industry, an investor should have a solid awareness of a company’s management team. For marijuana companies, this is especially important given the emergent nature of the space, the quick rise in options of stocks to buy and their market capitalizations.

“These are people you’re entrusting your money to, and if you can’t be confident about that, then by all means, don’t invest,” Alan Brochstein, a cannabis financial analyst with 420 Investor, told INN.

Brochstein suggested the first thing an investor should find out about the people leading a marijuana company is their experience in the market and their relationship to the industry.

For his part, Brown said two key indicators of an experienced management team are that some of the members have “strong, large-scale greenhouse growing experience” or executive experience from the pharmaceutical world — preferably someone involved with the launch of a blockbuster drug.

“Is management only here to make money, or do they have previous experience on the other side of the table, where cannabis made a material impact on their symptoms?” he said. “Together, these give a strong backing towards management’s passion for the industry and building their company.”

As the variety of available cannabis products branches out into other subsectors such as edibles, beverages and wellness products, it’s imperative to have a few team players on the roster that are well versed in these industries inside and outside the marijuana realm.

While interest and excitement for the marijuana industry continues to grow, pitfalls are still present in the space for those investing in marijuana stocks. A strong management team can mitigate investors exposure to such risks.

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How to invest in a cannabis stock: What does its capital structure look like?

Brochstein said a quick review of any public company’s financial sheets will provide a lot of information on the company’s model, such as warrants and options.

What’s more, Brown recommended that investors find out how many shares management holds, if they have been buying or selling their own shares and how much capital the founders put into the company.

Brown added that investors should check if there are dilutive securities and what their exercise prices are, as well as the prices and valuations previous financings were done at, if a financing closed recently. He also said investors should know if the shares have a free-trading hold period, as it’s worthwhile knowing when that period ends.

An important fact to know is whether the company is currently facing any debt. This could prove important as the marijuana company continues working towards its goals. Investors might also want to ask a firm how much it has in cash savings, and how long that will keep the company afloat before it needs to raise more capital.

As cannabis companies mature into a world marked by increasing periods of economic upheaval, a strong balance sheet is a must. In the midst of the COVID-19 crisis, Nawan Butt, portfolio manager with Purpose Investments, told INN that in the Canadian marijuana sector in particular, attention is shifting to the sales performance of public cannabis producers.

Butt said in order to evaluate their ability to survive such pressure, he’s been dedicating a lot of attention to the balance sheets of public cannabis companies.

John Zamparo, an analyst with CIBC Capital Markets, appears to agree with this strategy. In a note issued to investors, Zamparo stressed that in times of economic uncertainty, investors should have “a hyper-focus on balance sheet strength,” which he believes helps in the long run to protect against potential downturns in the space.

Being cash flow positive and earnings before interest, tax, depreciation and amortization (EBITDA) positive, or at least on the path there, are in turn positive signals for investors that these companies will have a better chance at accessing capital than their peers.

“Capital has been very challenging for companies lately,” Andrew Udell, a financial expert with the Cannalysts, a popular research group, said to INN. “Companies that have demonstrated earnings and demonstrated EBITDA-positive status are going to be able to access capital.”

How to invest in a cannabis stock: What is the company’s strategy and its target markets?

These questions add to the concept of how much room for growth the company still has. Investors should be aware of the size of the company they are looking at, its specific market and where it can go after its initial strategy has been completed.

Brown told investors to evaluate the company’s aspirations and how likely it is to achieve those. “Does the company want to be a massive player in a small pond or a small player in a massive pond?”

He said a big distinction, and often an easy way to identify differences in companies, is the medical vs. recreational aspirations they may have.

“If a company is only focused on the medical segment then its total addressable market is going to be smaller than if it wanted to participate in both the medical and recreational markets,” said Brown.

Gercsak approves of investors being speculative and taking a look at cannabis stocks that may have aspirations to enter the recreational market — but only if they have a clear path to permitting and are well defined within the market.

How to invest in a cannabis stock: In summary

As any investor can see, the cannabis market has a lot to offer now and in the future. In fact, the North American cannabis market as a whole could grow at a compound annual growth rate of 15.5 percent to reach as much as US$104.9 billion by 2027.

Investors interested in the area are encouraged to look around by experts like Aaron Salz, founder of Stoic Advisory, who said the unique marijuana industry is growing extremely fast.

“It’s not just a national movement; rather, it’s a global movement, with many large countries enacting regulations that will provide legal access to marijuana to tens of millions of people,” he said.

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So, you’ve taken the plunge by investing in marijuana stocks. Now what?

After adding marijuana stocks to your portfolio, it’s important for to make sure these cannabis companies are delivering shareholder value.

If you’ve read the Investing News Network’s (INN) guide on ways to invest in cannabis, then you know the basics on how to select the best publicly traded companies.

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But after investing in marijuana companies, some questions that are commonly asked are: How do you keep track of marijuana stocks? What should investors be aware of when they go through a company’s latest news? And what kind of marijuana stock metrics can investors look to when tracking their picks?

Since the legal cannabis market offers a blend of different types of companies, there isn’t a clear industry to compare it to. For example, in the life science sector, investors can look at the results of clinical trials; approvals certainly move things along for companies involved with drugs and biotech products.

In the marijuana sector, what are the metrics available to investors? Before detailing what these metrics may look like today, it’s important to understand that in the grand scheme of things the legal cannabis industry is still quite young and carries an inherent risk.

Licensed producers (LPs) in Canada lead the way with business models that have endured, gained recognition and granted these firms considerable market capitalizations; however, even for these marijuana growers, metrics aren’t as clear cut as they are in other sectors.

With that in mind, here INN provides an overview of the key metrics investors should look at after investing in a cannabis stock.

Marijuana stock metrics: Look at revenue and cash flow

Alan Brochstein, a cannabis financial analyst with 420 Investor, has said the key metrics he uses to evaluate any cannabis company are revenue, cashflow, liquidity and tangible equity.

He believes a lot of companies in the space are capable of generating revenue, which in return gives investors a direct opportunity to have an active role in the growth of the industry.

“The level of revenue, as well as the growth rate, are important criteria to track,” Brochstein told INN in an email. “Additionally, it’s a good idea to adjust for revenue acquired through acquisition, as this can overstate the growth rate of the underlying business.”

Brochstein continued, stating that he tracks operational cashflow, which is information investors can look for in a company’s public financial sheets, to get a clearer picture of resources compared to cash.

“If a company doesn’t have sufficient cash, it will need to raise cash, which can put pressure on the stock price,” Brochstein explained.

The rush of the cannabis industry provided many success stories, but it also opened the floodgates for companies seeking to make quick gains. As such, investors should be more aware of the fundamentals of a company, especially after investing. “Many of the companies in the public cannabis space have little or no tangible equity, which can make raising additional capital even more challenging,” Brochstein said.

CIBC Capital Markets analyst John Zamparo also leans heavily on balance sheets, cash burn rates and available liquidity in his cannabis stock evaluations. This strategy is especially important when the market environment is proving challenging for raising capital, such as in recent years.

“We believe focus among cannabis investors has shifted to minimizing downside; in other words, evaluating cannabis stocks from a liquidation perspective, simply comparing market capitalization to net cash balances,” Zamparo wrote in a note to investors in early 2020.

He further stressed attention to “a hyper-focus on balance sheet strength” to help mitigate risks in the long run against potential downturns in the cannabis space.

Marijuana stock metrics: EV and EBITDA projections

Russell Stanley, a special situations analyst with Echelon Wealth Partners focused on the Canadian cannabis market, told INN that the most practical methods he employs to assess cannabis companies are valuations using multiples, as well as enterprise value (EV) and earnings before interest, tax, depreciation and amortization (EBITDA) expectations.

EV represents the value of an outstanding stock plus the net amount of debt the company has in place. To explain EBITDA, Stanley said, “The idea behind EBITDA is that you’re measuring the profitability of a company’s operations before costs related to financing or capital expenditure.”

But why do the EV and EBITDA play such a vital role in the work Stanley does? As Stanley explained, other metrics aren’t as reliable. He added that the problem with someOTCQX:ALEAF traditional metrics — such as the price-to-earnings ratio — is that they represent an unbalance, as companies usually have non-cash gains and charges on a quarterly basis.

“Adjusted EBITDA ideally should neutralize the impact of that … We think EBITDA multiples are probably the most important metric to look at at this point,” Stanley said.

In a cannabis report focused on Q2 2020, CIBC’s Zamparo advised investors to watch for EBITDA developments in the cannabis sector going forward. “We deem it extremely unlikely that the industry’s producers will meet consolidated consensus EBITDA estimates next year, but we expect a greater number of EBITDA-positive business a year from now,” he stated in his report.

Marijuana stock metrics: Production and growth numbers

A major point for investors to determine the success of their cannabis stock is the company’s production and growth capabilities. Simply put: Is it producing?

Investors should be aware of a company’s announcements and its ability to deliver on them. When looking specifically at expansion, the size and details of final production are vital for investors to know.

When asked about which production numbers investors should keep in mind when comparing cannabis companies, Stanley said there are three numbers available, including currently licensed capacity, funding capacity and potential capacity. Of these, he believes funding capacity — how much production capacity a company can build out with its current balance sheet — is the most important of these metrics.

Sales is another area for investors to focus on, especially as the market matures into a challenging environment for growth and capital raises. Nawan Butt, portfolio manager with Purpose Investments, told INN that in the Canadian marijuana sector, investor attention has shifted to the sales performance of public cannabis producers.

In reference to the economic pressure the COVID-19 pandemic is placing on these companies, Butt said strong balance sheets and cashflow will be the deciding factor for survival. “For these producers, the current year or the second half of the year really depends on getting to profitability, and getting to profitability is going to be a large battle in the deep-value space,” Butt said.

Marijuana stock metrics: What is the company’s international agenda?

Investors should be aware of potential expansions and partnerships in international cannabis markets.

A big target for anyone interested in cannabis is the US; however, the situation in the country is confusing at best. On a federal level, cannabis as a whole, including businesses related to it, is illegal. But despite the federal status of the drug, several states have adopted cannabis and legalized its medical and recreational consumption.

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This disparity allows companies in legal states to grow cannabis and operate related businesses. But for Canadian companies, more specifically growers, the US market is off limits in terms of exports. In 2017, TMX Group (TSX:X), which oversees the Toronto Stock Exchange and the TSX Venture Exchange, issued a statement to clarify the stance of Canadian producers with US interests.

Australia and Germany are two other options when it comes to international venues, and laws seem to be moving favorably for experienced LPs looking to make gains. PI Financial analyst Jason Zandberg told VICE Money that the opportunity of the German market could be “more than double that of Canada.”

A truly open and available international cannabis market will take time to achieve, but the experience Canadian marijuana companies have gained may allow them to be at the forefront of new opening markets if they choose to enter them.

“It’s a lot easier to increase your exports into a market where you’re already selling. If investors … really want that to be a part of their investment exposure, they should focus on companies that are already exploring the market rather than companies that are still talking about it as an objective, but haven’t actually broken through yet,” Stanley said when asked how investors should evaluate a company’s intentions on an international scale.

Cannabis stock analysis and research firm Technical420 sees the international cannabis market as a great arena for growth in the industry. “When it comes to the cannabis sector, we have a strong conviction level as to the growth prospects that are associated with the international opportunity. We believe that the international market will prove to be a major catalyst for the companies that are levered to it and have been highly focused on this vertical,” states a recent editorial on the platform.

The firm has highlighted Aleafia Health (TSX:AH,OTCQX:ALEAF), Canopy Growth (TSX:WEED,NYSE:CGC) and Aurora Cannabis (TSX:ACB,NYSE:ACB) as three cannabis stocks “that are positioned to capitalize on the global cannabis opportunity.”

Marijuana stock metrics: In summary

There are high expectations for companies in the cannabis market as the industry matures and more standards are set in place. For investors who want to keep an eye on their cannabis stocks, going with tried-and-true business metrics is the best bet as of now for determining company success.

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The 2016 presidential election cycle brought a flurry of support for cannabis policies across the US. This year, five states will ask voters to decide on a variety of cannabis programs.

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