Although we spend a great deal of time sifting through the jungle of cannabis companies, we actually only ever recommend a small handful of them – and even when a cannabis company meets all of our strict criteria (strong balance sheet, experienced management team, superior branding and marketing, etc.), we wait patiently until the share price is in the buy zone before we pull the trigger.
One of our primary sources of up-to-date information on these companies is press releases, which we read on a daily basis. These provide essential information and updates on the companies on our watch list: changes in management, mergers and acquisitions, private placements and investments, earning and revenue announcements, and so on.
I’ll give you an example to illustrate what I’m talking about. We just recently came across a press release announcing that C21 Investments Inc. (CSE: CXXI) had raised nearly $15 million in a private placement – it’s big money for an up-and-coming cannabis company that’s been on our watch list for a while now.
Robert Cheney, President and CEO of C21 Investments Corp., explained the encouraging implications of these large-scale investments in this fast-growing cannabis market leader, noting that “investors continue to show confidence in the company and its strategy.”
Mr. Cheney also added that “with the closing of several acquisitions and others due shortly, we are providing investors with the opportunity to invest in a vertically integrated cannabis company that cultivates, processes, and distributes quality cannabis and hemp-derived consumer products in the United States.”
For Robert Cheney and C21, top-quality brands take precedence and enable the company to compete aggressively in the rapid growth of the cannabis industry and grow earnings and revenues. C21’s strategy is to acquire the best cannabis brands in the business – ones that produce and distribute a broad range of THC and CBD products, such as cannabis flowers, pre-rolls, cannabis oil, vaporizer cartridges, and edibles.
With an array of superior American and international cannabis brands under their umbrella, C21 literally covers every conceivable segment of the cannabis supply chain: cultivation, processing, branding, retail, and distribution:
The company’s network is comprised of hundreds of dispensaries, hundreds of thousands of square feet of premium cultivation space, and highly recognizable and popular brands. As such, there’s no need to start from scratch and build their own brands when C21 can scout out and partner with established and hugely successful cannabis companies.
Just one example of C21’s holdings is Oregon-based Phantom Farms, which has massive outdoor cannabis cultivation facilities totaling 80,000 square feet, with an additional 40,000 square feet under development. On top of that, Phantom Farms operates a 5,600-square-foot facility that includes a wholesale distribution warehouse and an extraction laboratory, plus a 7,700-square-foot, state-of-the-art indoor grow facility in central Oregon.
Other examples of C21’s world-class suite of canna-business brands include Silver State Relief in Nevada and Eco Firma Farms and Pure Green in Oregon, plus C21 has a definitive agreement to acquire Swell Companies in Oregon and is prepared to expand its core holdings even further in the near future.
It’s no wonder that institutional investors are competing to take a stake in C21 Investments Inc.: an outstanding and expanding array of top-of-the-line brands covering the full spectrum of the cannabis supply chain is C21’s calling card, and at the current stock price, the shareholder value is unmatched and unbeatable.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: Legal Notice:This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. Wallace Hill Partners LTD, a Canadian company, which is owned by the same individuals as Crush The Street LLC, has been compensated three hundred thousand u.s. dollars, five hundred thousand canadian dollars and one million, right hundred thousand RSUs, directly by c21 investments, for a three year marketing agreement. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.Please read our full disclaimer at CrushTheStreet.com/disclaimer