We’re Buying the Next “Best-Performing Stock of the Century” for 50 Cents
And It Could Make You Up to 9,900% Over the Next Five Years
By Teeka Tiwari and William Mikula
Friends, in this issue, we’re thrilled to bring you our second “Sweetheart deal.” Due to overwhelming interest, these kinds of private deals usually fill up quickly. So if you’re interested, we recommend you act sooner rather than later. Once it does fill up, we’ll notify you. Complete details on how to get involved are at the end of this report.
Please note: For this particular deal, you will need to be a U.S. resident, U.S. entity, or accredited investor in your respective home country to take part.
Now, we understand missing out on a potential deal can be frustrating. But rest assured, my team and I are tirelessly hunting for more deals to present to you. There’ll be plenty of opportunities down the line. And we’ll alert you once we have a new one in place.
Let the Game Come to You!
Imagine attending an exclusive event and being presented with the opportunity of a lifetime…
If you were in the right place at the right time, you could’ve had your shot in late 2001.
At the time, businessman Rodney Sacks had just announced an ambitious plan for the 67-year-old beverage company he controlled…
He wanted to pivot away from the company’s natural juice and soda lines and hatch a new energy drink brand to compete with industry leader Red Bull.
At private events, the new CEO was drumming up investor support for his bold plan. And if you met him at one of those events, you could have been one of his first backers at around 55 cents per share.
The name of the company? Monster Beverage.
After it went public, Monster went on to become the best-performing U.S. stock of the century.
Today, its split-adjusted shares are trading around $58.21—a 10,4812% gain in 17 years.
This means every $1,000 invested could’ve made you $104,800.
And the only way you would have gotten in early before the masses was if you had access to these exclusive investor events that were closed to the public.
Fortunately, we have that kind of access. And it’s exactly how we found a company that’s poised to become the next Monster Beverage.
It took a tremendous amount of time, travel, and due diligence… But this month, we’re putting you on the inside track to invest in the next beverage industry disruptor.
Through our second “sweetheart deal,” we’ll be able to get in on the ground floor for a mere 50 cents per share–before today’s company goes public.
(In fact, it may not even get a chance to go public. It’s so attractive, we wouldn’t be surprised if a larger competitor acquires it outright.)
And if shares follow the road map we lay out below, we’re looking at a 9,900%-plus gain in the next five years. That’s enough to turn every $1,ooo into a $100,000 windfall… the perfect asymmetric bet we look for at PotStockNews.
Like Monster, this company is a beverage innovator, just. And it’s following a trend we’ve been covering in PotStockNews since inception: cannabis.
As cannabinoid (CBD) continues to be incorporated into all kinds of products, this company beats its competitors by offering healthier alternatives on popular products.
And not only does this company have what we believe could be the next hit energy drink product, but it’s disrupting other multibillion-dollar beverage categories.
In this month’s issue, we’ll tell you all about this exciting opportunity… and how to get involved right away. But as usual, we’ll have to move quickly. The opportunity to get involved in the “next” Monster won’t last long, and only limited room is available.
Finally, we’ll wrap up today’s issue with an update of the overall cannabis market, as well as a full rundown of our portfolio. And we’ll get to some excellent reader questions that have rolled in since our last update.
Let’s get started…
Getting in on the Ground Floor… Through a Cocktail Party
Six months ago, we attended an exclusive, invitation-only investment gathering in New York City.
We were invited to attend based on our ongoing work in the new Regulation A+ industry. Our coverage of the space—and the opportunities within it—has attracted a lot of attention.
At the cocktail reception after the event, we were approached by an event sponsor. His name is Raj Beri, and he had sold his prior beverages company (Australian Bitters) to the Australian branch of Coca-Cola three years ago. (Coincidentally, Coke is also a partial owner of Monster.)
After the sale, Raj spent the next few years working on his next venture. And after much research and trial and error, he had figured out a way to harness Australian spring water, Australian grapes, and other natural ingredients.
He also struck a deal with a bottling plant in Australia that could bring his vision to reality… combining high quality with low cost.
Elegance Brands was born.
Raj’s goal was to launch an all-natural energy drink unlike anything the market had ever seen.
Needless to say, he had our attention. After all, every serious investor on the planet knows the story of Monster, Red Bull, and other energy drinks that have taken the market by storm over the past 20 years.
What followed was a PotStockNews staple: a nine-hour grilling session that spanned the cocktail reception, a restaurant, a bar, and finally, the hotel lobby. And if Raj hadn’t had to catch the red-eye to LA, we would’ve kept at it.
By the end of it, we were convinced: Elegance Brands has what it takes to become the next billion-dollar beverage company.
That’s a bold statement.
But once you understand Elegance’s product offerings and its plan of attack, you’ll understand why we’re so excited to bring you this opportunity.
Neither Market Jar Media Inc or its affiliates receive compensation for bringing this deal to you. As publishers of financial information, we make general recommendations based on our own analysis. We do not offer investments.
For this reason, our PotStockNews customer service team will not be able to assist you with this deal. Please contact Elegance Brands directly for all investment details.
Five Ways to Win
According to Allied Market Research, the global energy drinks market accounted for $53.01 billion in 2018. It’s estimated to reach $86.01 billion by 2026, growing at a CAGR of 7.2% from 2019 to 2026.
“Rise in demand for energy drinks due to its looked-for effects such as improved memory and fast recovery along with increased prominence among young generation and inclination toward organic energy drinks are expected to boost the growth of the global energy drinks market,” the report said.
And we’ll see a similar boom in the CBD market.
Brightfield Group forecasts CBD sales to grow from $591 million this year to $22 billion by 2022. And Merrill Lynch projects the CBD industry to directly disrupt existing businesses worth as much as $2.6 trillion.
Elegance plans to leverage both massive trends…
It currently has an impressive lineup of marquee brands ranging from energy drinks to super-premium vodka, plus tinctures, beer, and tea.
So it’s perfectly positioned to cash in on the next multibillion-dollar CBD/hemp wave: infusion. That will give Elegance a direct line to tap into up to $1.2 trillion in beverage sales.
And that’s a key trait of the deals we look at at PotStockNews: massive markets, ripe for disruption.
First, we’ll go over Elegance’s products line. Then, we’ll run the company through our strict SCALE system:
Gorilla Hemp Energy Drink
Gorilla Hemp energy drink is Elegance’s challenge to Monster, Red Bull, and the $10.9 billion energy/alternative drink market. What makes Gorilla unique is its all-natural ingredients sourced from Australia and Kentucky.
As we’ve written before, the cannabis plant has many uses. You see, hemp doesn’t contain any THC (the compound that gets people “high”). Instead, companies extract CBD from hemp and use the compound to address common ailments and provide unique health benefits.
Although the science is relatively new, early results are promising. CBD has swept across the U.S. and we now find it in everything from water to dog food.
Elegance combined its proprietary blend of ingredients with CBD oil from the finest Kentucky hemp to create its Gorilla Hemp energy drink line. Finally, Gorilla Hemp utilizes fast onset technology. This allows a drinker to feel the effects quickly.
The award-winning Elegance Vodka was Elegance Brands’ first product. It took three years to perfect the design and taste. And the unique bottle stands out among the standard misty vodka bottle fare.
This vodka is meant to disrupt the premium end of the vodka industry. It’s gluten free. It’s also the only vodka on the market that’s 11-times distilled and made in small batch quantities from Australian chardonnay grapes.
Each bottle is hand made by glass-blowing artisans in Australia. The top of the diamond-shaped bottle is made from a specific crystalline acrylic and took Raj and his team two years to perfect. That shows us Elegance is committed to quality.
Life Brew CBD Beer
This innovative beer combines all the benefits of CBD with the taste, flavor, and feel of a craft beer. It’s designed to cater to those who enjoy the taste of beer, but would prefer a healthier, non-alcoholic version.
Indica Hemp Tonic
Elegance designed the world’s first hemp-infused tonic water. It fuses the relaxing properties of Indica Hemp with spring water and quinine. This tonic is designed to appeal to tonic drinkers and as a mixer for artisanal cocktails.
Elegance also has other products, like its first-of-its-kind CBD tincture endorsed by Dr. Rupesh Parikh, one of the leading oncologists in the country. Or its Jimi’s Soda brand – inspired by the songs and lifestyle of Jimi Hendrix.
We could keep going. but you get the point: This company is positioned to disrupt multiple, billion-dollar end markets with healthier alternatives, and innovative packaging.
Now that you know what Elegance is, let’s run the beverage innovator through our strict SCALE grading system…
We developed our “SCALE” system to filter through the dozens of private opportunities that come our way each month. It separates the great deals from the ones that aren’t worth our hard earned capital. It stands for Structure, Cash, Advantage, Leveraging a Trend, and Executives. You can read more about the system in our PotStockNews manifesto.
As a refresher, Regulation A+ deals let private companies and startups raise funds from everyday investors. They post their deal and investors can choose whether to entrust the project with their money. In return, the companies offer equity to investors.
Elegance is offering 57 million shares and raising $28.5 million in this round of funding. We have the opportunity to get in on the ground floor at only 50 cents per share with a 75-cent half-warrant attached per share (18-month expiration). The minimum amount you can invest is $250.
Remember, a warrant gives us the right to buy shares at the strike price (75 cents) up until the expiration date (18 months from the time you purchase shares).
Let’s say you buy $5,000 worth of Elegance shares today. That would give you 10,000 shares ($5,000 x 50 cents per share). It would also give you 5,000 warrants. (Remember, you get “half” warrants in this deal.)
Now let’s assume that Elegance executes on its business plan, and shares are trading at $2.75 as we approach the 18-month mark. At this point, you could cash in your warrants directly with the company (or through your broker if Elegance is public at this point).
To do this, you’d “exercise” your warrants. You’d be able to buy shares for 75 cents, even though the market price is $2.75. That’d be an instant 267% gain.
That’s why we call warrants “lottery tickets.” And it’s also why private deals like this are a preferred investment vehicle for the rich and connected: It allows you to get in at a cheap price before a company goes public… with warrants serving as an extra “kicker” if things really take off.
If this sounds confusing, don’t worry. We’ll track the share price and warrants on our portfolio page. And we’ll alert you with any new recommended action to take.
Finally, remember with these “sweetheart deals,” we are buying shares directly from the company. This means you won’t be buying them from your normal online brokerage account.
For full instructions on how to get involved, see the end of this issue.
And keep in mind, Elegance is only raising $28.5 million with this offering. This means it will fill up fast. In fact, during its “testing the waters” phase, Elegance received close to $7.5 million in expressions of interest… with very limited marketing efforts.
So as always, if you’re interested in getting involved, please see the instructions at the end of the issue.
Successful Regulation A+ offerings bring a flood of cash to a company. So when we track down a potential sweetheart deal, we want to make sure the team has a clear use case and plan for this cash infusion.
With Elegance, the plan is clear: It plans to use funds to promote and scale operations across its product lines.
For example, with Gorilla Hemp, Elegance will increase manufacturing capacity, order sizes, and bulk up its sales team.
And thanks to its distribution agreements, Elegance is poised to ship Gorilla Hemp to supermarkets, gas stations, and convenience stores across the U.S., Canada, Australia, and Europe. This means the Reg. A+ cash infusion will begin producing revenue fast.
Elegance has three key advantages over its competitors:
- Healthier options
Healthier options: In recent years Monster, Red Bull, and Rockstar have come under fire by consumer advocates for having too much sugar… too much high fructose corn syrup… and other excess unhealthy ingredients in their energy drink offerings.
And according to a study in the Journal of the American Heart Association, among other health issues, caffeinated energy drinks altered the heart’s electrical activity and raised blood pressure.
But Elegance has developed an all-natural energy drink. One that provides energy and focus, without the crash.
In fact, Elegance sources its hemp and CBD from arguably the highest-quality producing region in the world: Kentucky.
Elegance’s advantage here is that it takes already-popular products, and redesigns them with a healthy twist… disrupting a product category that already has a proven record of success with consumers.
Margins: By focusing on the premium end of the market—and adding the CBD infusion angle—Elegance can sell its products at a higher price point than competitors.
For example, Gorilla Hemp Energy Drink retails for $3.95 per 16-ounce can—with gross profit margins of 74%, meaning it keeps 74 cents for every $1 in sales.
And thanks to its unique, natural ingredients and CBD infusion, Gorilla has higher prices and margins than similar products:
- Monster sells a 16-ounce cans for $3, with 60% gross profit margins.
- Pepsi sells 16-ounce cans for $1.19, with 55% gross profit margins.
- Coke sells 16-ounce cans for $1.19, with 61% gross profit margins.
It also makes higher gross profit margins on its alcoholic beverages, like its premium brand, Elegance Vodka.
The company spends $30 on every $99.95 bottle of Elegance, giving it gross margins right under 70%. For comparison, multinational alcoholic beverage company Diageo (owner of Ketel One, Ciroc, and Smirnoff vodkas) has 62% gross margins.
Elegance aims to disrupt premium vodka the same way Don Julio 1942 and Casamigos (co-founded by actor George Clooney) disrupted the premium tequila space.
In fact, Diageo bought Casamigos in 2017 for a cool $1 billion. It made Clooney the highest paid actor for the year–despite the fact he didn’t star in a single movie.
That’s the kind of payoff premium brands can command in the beverages space.
Distribution: Gorilla Hemp has an agreement with Southern Glazers Wine & Spirits (SGWS) for distribution in 42 U.S. states. SGWS is the largest adult beverages distributor in the U.S.
Elegance also negotiated an agreement with the largest Circle K franchisee in the U.S. (1,100 stores) to carry Gorilla Hemp, and is in the final stages of discussions with AATAC—an organization with 80,000 convenience store locations.
On the spirits end, SGWS will distribute Elegance Vodka in the 42 states they operate in, as well as the other Elegance brands.
LEVERAGING THE RIGHT TREND
At PotStockNews, we seek out massive, undeniable trends… then position ourselves in the best companies. And as these once-in-a-generation trends unfold, we cash in big.
And as we mentioned above, Elegance is riding two major trends…
Analysts estimate the global energy drinks market to rise from $53 billion in 2018 to $86 billion by 2026.
And the CBD market will be even bigger.
Brightfield Group forecasts CBD sales to grow from $591 million this year to $22 billion by 2022. And Merrill Lynch projects the CBD industry to directly disrupt existing businesses worth as much as $2.6 trillion.
And while it’s clear Elegance is positioned to ride this tsunami trend, none of this matters if the company can’t execute. So let’s take a look at the Elegance team…
Raj Beri, CEO and Founder: During our initial marathon grilling session, one thing became clear—Raj’s passion for the beverage industry is unmatched. During his 20-plus years of experience, he’s successfully founded, built, and sold beverage brands.
For example, Raj facilitated the sale of Cocktail House to Brown Forman (the owners of Jack Daniels) in 2014. And the sale of Australian Bitters to Coca-Cola Amatil in 2017. To this day, Australian Bitters enjoys 50%-plus market share in Australia.
He also founded an Australian distillery and beverage company almost 10 years ago.
And as CEO and founder of Europa Group, his track record was golden. During his tenure, he led the business to an average growth rate of a jaw-dropping 41% a year.
He recently stepped down from Europa to pursue Elegance Brands.
Abbott Wolfe, Chief Revenue Officer: Abbot has been involved in almost every major innovation in the alcohol beverage space since the 1980s.
His 30-plus years of beverage experience involved time with global behemoths Constellation Bands (senior vice president), Diageo (director), Pabst Blue Ribbon (chief sales officer), and E & J Gallo Winery (field marketing manager).
He also spent time with smaller private labels at the executive level… guiding them towards industry disruption, and eventual sales.
He’s the perfect fit to push the needle on Elegance’s portfolio of brands.
Ram Venkat, Chief Financial Officer: Ram is a former investment banker and star analyst for the cannabis and beverage industries. Specializes in valuation and branding strategies.
Our key takeaway after meeting with the executive team is their passion and focus on branding.
In fact, they walked us through years of marketing research to find the perfect brand names. This shows you the company thinks everything through and researches the market about everything, right down to product names.
What’s It Worth
Currently, Elegance has 88.9 million outstanding shares. It’s offering 57.5 million more at 50 cents during its Regulation A+ offering. If it sells all shares during the offering, it’ll have value of around $73 million.
We believe this is a steal… We believe Elegance could be the next $1 billion-plus beverage company (more on that in a moment). And the main growth driver is Gorilla Hemp.
In 2005, Monster was in its third year selling energy drinks. The company generated $349 million in annual sales that year and traded at 5 times sales. That gave it a market cap of $1.75 billion.
Now, let’s say Gorilla Hemp captures just 0.5% of the projected $86 billion energy drinks market over the next five years. That translates to about $400 million in revenue.
If we use a similar sales multiple as Monster, that would give Elegance a $2 billion market cap. Based on its number of outstanding shares, Elegance would trade at $13.65. That’s a 2,630% return—enough to turn every $1,000 into $27,300.
That’s a homerun by itself. But the grand slam is in Elegance’s premium alcoholic brands…
As we mentioned above, George Clooney’s premium tequila brand sold for $1 billion in 2017. But that was only one brand.
And while we believe Elegance Vodka can command a similar price, the company has a suite of non-alcoholic, alcoholic and beer products on offer as well.
When you factor in all of Elegance’s beverage brands, we believe its share price can reach $50—that would be 100 times the offer price of 50 cents (see table below).
That’s the type of life-changing gains we look for at PotStockNews.
Elegance Brands Share Price Roadmap
Share Price (USD)
Buy in at 50 cents per share. Scale Gorilla Hemp and Elegance vodka to all 50 U.S. states and Canada.
Expected revenue: $38M–$74M.
Have six brands selling in the U.S. Gorilla Hemp and Elegance Vodka expand to international markets.
Expected revenue: $83M–$155M.
All manufacturing and bottling will be brought in house to expand margins further. Expand all brands to target global markets.
Expected revenue: $164M–$327 M
Look to acquire or cut agreements with complementary brands that are leaders in key markets Elegance has yet to penetrate. Begin entertaining buyout offer.
Expected revenue: $344M–$697M
All the above, plus a 5% penetration of the $11 billion US hemp/CBD beverages category, and 5% penetration of $33 billion premium spirits market. Expected to be bought out around $50 per share by then end of the year.
Expected revenue: $740M–$1.4B
Bringing It All Together
Elegance plans to list on the Canadian Securities Exchange within nine months of the close of its Regulation A+ offering. This will add additional liquidity and exposure.
But we wouldn’t be surprised if a major competitor opens its checkbook and snaps Elegance up once its other brands start stealing market share and shelf space.
Regardless of how it shakes out, Elegance is on the path to becoming the next “best-performing stock of the century.”
And right now, we have the chance to buy it at 50 cents per share. This is a no-brainer.
Let the Game Come to You!
Teeka Tiwari and William Mikula
Please be aware, in private placements, while there is potential for your rewards to be higher than in traditional investments… there is also a very real, high risk.
In some cases, the company might not receive regulatory approval and the shares won’t go public. And like public companies, private companies can also fail. So your investment could go to zero.
Alternatively, the company could go public like we expect. But there’s a chance share prices could fall and lose you money, which is a risk for private companies that IPO.
Look, you don’t need to risk more than a small amount to see big gains. So for investors with smaller accounts, we recommend no more than the required minimum. For investors with larger accounts, we recommend you don’t invest any more than you can afford to lose.
The minimum investment for this specific deal is $250. You must reach out to Elegance Brands directly to take part in this private deal. The information it provides is what you should use to decide whether the investment is right for you.
How to Invest in Elegance Brands
If you’d like to take advantage of the Elegance Regulation A+ offering, you have two options:
- Visit investinelegance.com. Explore the site and learn more about the company. You can also click the “Live Chat” icon in the bottom right-hand corner of the screen to chat with a representative. When ready to invest, click “Sign up to Invest,” and follow the prompts:
- Call the Elegance Brands investor relations team at 299.9584. International readers please dial +1.310.299.9584. Members of the investor relations team will be available today until 10 pm EST. And then Monday – Friday from 8 am EST to 8 pm EST moving forward.
- If you’d like to send the Elegance team an email, please contact them at [email protected]
You will have the option to invest in Elegance by check, ACH, wire transfer, credit card, or through an IRA.
After you sign up, all prospective investors will receive a weekly email from Elegance.
You’ll also receive a weekly email update from Elegance’s CEO Raj Beri every Saturday.
You can also join Elegance’s weekly webinar every Wednesday at 8 p.m. EST, starting October 18. In these, you’ll get updates on new team members and company developments.
Remember, our PotStockNews customer service team will not be able to assist you with this deal. Please contact Elegance directly for all investment details.
Please note: Elegance put together a how-to video on getting started. You can access that video here.
Whichever way you choose, if you’d like to act, do so quickly. With the amount of anticipated demand, this deal won’t be available long.
We’ll be in constant contact with the Elegance team as the deal fills up and will let you know of any updates, including an exchange listing, IPO, buyout offer, or other news moving forward.
Cannabis Market Update
Last Wednesday, we sent out an extensive video update. In it, we took a deep-dive into the overall weakness in the cannabis market. And we covered corporate scandals, the vaping crisis, and management shake ups.
We also tied the news into how a couple of our positions are performing: KushCo and New Age Beverages.
Here’s are key takeaway: We still see plenty of opportunities ahead in this space. Product shortages, regulatory wins, and record sales point to a bright future once the current bout of negative sentiment clears.
To watch this in-depth update, click here.
By Teeka Tiwari and William Mikula
Juva Life Corp. (Juva Life)
Our first sweetheart deal continues to move forward…
Bolstered from its new funding, construction and renovations are moving along at all five California Juva facilities.
- Its delivery facility in Redwood City is complete. The location received all local and state licenses and will be operational by November 1.
- Its Hayward state-of-the-art lab will begin construction by Q1 2020. As a reminder, this is the facility where Juva will design, test, and sell its cutting edge CBD products to address common ailments.
- Its premier cultivation, distribution, and delivery facility in Stockton is in heavy construction mode. CEO Doug Chloupek said last week that things were moving along well.
Juva is also exploring white labeling for a disruptive liquid technology. Meaning Juva has the licenses and skills to make cannabis products in California. And now, it’s accepting applications from outside companies and will choose best-in-class products to manufacture.
Finally, Juva published a press release last Friday, that you can access here.
If you would like to get involved with this “sweetheart deal,” we have good news. There is still a chance to get in, but space is limited and filling up fast. So if you’d like to get involved:
- Go to investjuva.com.
- Agree to the terms and conditions.
- Complete the fields at the top of the page and follow the prompts through the investment process.
If you have any questions along the way, you can call Juva’s investor relations team at 1-833-333-5882 (JUVA) or email them at [email protected].
(Please note: Our customer service team will not be able to assist you with this deal. Please contact Juva directly for all investment details.)
Action to Take: If you are interested in pursuing the Juva Life Regulation A+ opportunity, contact the company directly and complete the process on their website, or over the phone.
WeedMD is beginning to harvest its outdoor site.
In our previous update, we mentioned the 27-acre outdoor site in Strathroy, Ontario, was maturing. The team has started to harvest the crop just before the colder months hit. We expect them to continue harvesting in the weeks ahead.
This will be WeedMD’s first harvest on the outdoor site. We expect this harvest to translate into record revenue for WeedMD in Q4.
The team also locked in $13.1 million via a bought-deal offering. It will use this added capital to purchase new equipment for the Aylmer Facility, build an outdoor processing facility at the Strathroy facility, and others.
This added capital will improve WeedMD’s capacity and improve its operation’s efficiency. We look forward to WeedMD continuing to break its revenue records in the coming quarters.
Action to Take: Buy WeedMD (WDDMF) up to $2.20.
New Age Beverages (NBEV)
New Age Beverages continues to expand overseas. On September 24, the company announced it received approval by the Japanese government to sell its CBD products. The company can launch its products into the Japanese market with a population of 127 million immediately.
New Age will sell its CBD-infused products to the now open Japanese market. This includes the Marley CBD-infused beverage line, an enhanced line of creams, oils and roll-ons, and its new Noni+CBD product.
It will immediately sell its products to over 50,000 direct-to-consumer product consultants in Japan. This is a great first step. We expect the New Age team to build on this by gaining a foothold in retail stores across Japan soon.
The beverage innovator is expanding into new markets and generating sales in CBD-infused beverages. This is great because we believe its CBD-infused beverage line will propel New Age Beverages’ share price in the same way energy drinks did for Monster Beverage’s share price (as we told you above).
Action to Take: Buy New Age Beverages (NBEV) up to $6.
As we told you on September 26, Health Canada released its verdict regarding CannTrust’s unauthorized growing of its product.
It suspended, but did not revoke, CannTrust’s cannabis licenses until the firm can display that it has solved the issues that led to the current scandal. You can catch up in our update here.
In the long-run, we believe CannTrust’s recent actions will lead to its license being reinstated in the coming months. It has replaced top executives, brought in auditors, is working with Health Canada, and is accepting returned product.
This signals that CannTrust is actively trying to get back on Health Canada’s good side.
We will continue to monitor its progress and alert you of any developments.
Action to Take: Hold CannTrust (CTST).
The ongoing “vaping crisis” we’ve mentioned has rocked KushCo hard. But we believe the company is being punished unfairly.
KushCo specializes in legal vaping supplies—not the illicit counterfeits that have been linked to most of the illnesses thus far, according to the Center for Disease Control (CDC).
In fact, this crisis has shown how important it is to prevent counterfeiting. To this end, KushCo recently signed a deal with De La Rue, an authentication and anti-counterfeiting company.
Through this deal, KushCo will provide custom-branded security labels for its cannabis customers. This will make it harder for illegal operators to rip off well-known brand names.
According to CEO Nick Kovacevich, his company has already received inquiries from dozens of companies for millions of these custom security stickers.
The vaping crisis will take some time to play out… but KushCo shares are a screaming bargain at these levels.
Action to Take: Buy KushCo (KSHB) up to $5.50.
At the cannabis award show at Grow Up Conference, HEXO’s Agnes Kwasniewska was named Master Grower of the Year. This is a nice feather to HEXO’s cap since it reflects its product is among the highest quality in the industry.
Also, in August, HEXO and the Ontario Cannabis Store (OCS) added 18 new product listings from HEXO. The OCS is the only legal online recreational cannabis store in Ontario. It serves as a wholesale distributor to retail stores in the province. Getting more products listed in the OCS boosts HEXO’s exposure and product offerings in the region.
These developments will help HEXO become a top three global cannabis company.
Action to Take: Buy HEXO (HEXO) up to $7.50.
On September 6, Health Canada approved 17 new cultivations rooms for OrganiGram. This will add 15,000 kilograms per year of capacity. At $4.50 per gram, this represents an additional $75 million in potential annual revenue.
OrganiGram continues to scale its operations. Plus, it will file licensing paperwork for its next phase of expansion. Every new license and expansion brings sales to the company, meaning higher share prices ahead.
Action to Take: Buy OrganiGram (OGI) up to $7.50.
Green Thumb Industries (GTBIF)
At the end of August, Green Thumb released its financials, and the cannabis leader crushed it.
Q2 revenue was $44.7 million, which is up 228% from the same quarter from a year ago. And revenue was up 60% from the previous quarter. The best part is Green Thumb’s margins improved from 47% in Q1 to 52% in Q2.
This means the company is increasing sales and capturing more dollars of every sale.
Green Thumb is becoming a lean, cash-generating machine.
Meanwhile it continues to scale up operations. Green Thumb now has 32 Rise stores across the country. We expect Green Thumb to continue expanding as it deploys its 95 licenses over 12 states.
It’s clear Green Thumbs is looking to capture major market share within the U.S. In fact, Wall Street’s first cannabis analyst from investment banker Cowen just gave Green Thumb the highest rating due to its consistent focus on shareholder returns. Green Thumb looks to be an incredible deal at these prices.
Action to Take: Buy Green Thumb Industries (GTBIF) up to $12.50
We read all feedback and answer common questions in monthly updates. Please note, we can’t give personalized investment advice. Write in with your questions here.
I can’t find U.K. brokers who deal with some of your recommended companies.
Do you know of any U.K. brokers who offer these stocks to clients ? – Jagdev H.
Answer: As a reminder, we can’t recommend specific brokers. But we’ve heard from our readers that the most popular brokers for international subscribers have been:
- International Brokers (https://www.interactivebrokers.com/en/home.php)
- TD Ameritrade (https://www.tdameritrade.com/home.page)
- QuestTrade (https://www.questrade.com/home)
Can you comment on investing in Juva Life via an IRA Administrator? – Wiliam C.
Answer: Juva does offer the ability to invest through an IRA. To do so, please contact the team directly.
Call 1-833-333-5882 (JUVA) or email [email protected].
We can’t offer tax advice, so please consult with a tax professional before taking action.
- I am trying to invest in Juva Life and am struggling with my broker to understand the process. Can you explain? – Brian S.
Answer: At the moment, Juva is privately held. This means your shares will be held by the company treasurer, and you will also receive a physical copy.
If Juva goes public, your shares will be transferred by Juva’s transfer agent to your broker. From there, you’ll be able to view your shares online on your broker platform.
And don’t worry… as the story unfolds, and if/when Juva goes public, we’ll update you with what to expect along the way.
- I’m in the process of claiming my Juva life investment for a minimum of $2,000. I thought that it would be just like buying 4,000 shares of stock? I’m not understanding what a warrant is? Also, am I going to have to hire an attorney to invest? All those documents they want us to sign has me very confused.– Michelle L. (PBV)
Answer: It never hurts to have an attorney review paperwork for a potential investment. And remember, Juva is a privately held company. As a reminder, it’s accepting new investors through a Regulation A+ offering.
Since Juva is a private company, you can’t buy shares on a typical online brokerage account. You need to contact Juva directly. The team will assist you with purchasing shares.
Call 1-833-333-5882 (JUVA) or email [email protected].
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