The hottest IPO in the US cannabis sector lists TOMORROW.
I invested $300,000 into this company in January 2019—two years ago when NOBODY in cannabis could raise money. But it had a stellar team, and a simple busines model.
The company has turned out be everything I hoped for, and more.
When it lists tomorrow it will have
1. Over $40 million cash
2. The Top 2 GOAT Cannabis Investors as major shareholders (Greatest Of All Time!)
3. A Trulieve-style business model—OWN YOUR STATE. Trulieve (TRUL-CSE) owned Florida from Day 1. Their business is considered best of breed and the stock has gone from $8 – $64 in the last 12 months. This company already owns MICHIGAN
4. One of the top growth curves in the sector
a. 12 dispensaries already, planning to go to 20+ by the end of this year
b. Production will ramp from 1,000 to 3,000 pounds by June 2021 and to 5,000 pounds a month by the end of 2021
c. Setting them up for an annualized $300 million run rate by YE (Year End) based on management estimates
The best thing for YOU is…this company was funded last fall—at a very cheap valuation by today’s standards. So I expect that for a few days anyway, it will play catch up to its peers—which, if you haven’t noticed, are smokin’ hot stocks these days.
The cannabis sector has gone ABSOLUTELY BALLISTIC since the Democratic win in November in the USA.
That moonshot isn’t the chart of a single stock. This is the entire sector which is up 300% from last fall. Almost the entire move has come in the first few weeks of 2021.
The IPO here was priced MONTHS ago, BEFORE the cannabis sector went nuts.
That IPO valuation is now WAY out of date. I suspect the Market will revalue it quickly, to match current cannabis sector valuations. I’m not certain where that correct valuation metric falls for this stock…but I do know it will initially trade well below the peer average.
Every Cannabis Sector ETF Will Need To Buy This Stock
Tomorrow should be exciting but I’m pretty pumped for the first several months for this stock.
As a newly-listed, public cannabis operator in the USA this stock is going to attract money flows from the cannabis sector ETFs—which collectively now manage A LOT OF CASH……billions of dollars. And they are growing quickly.
With the big move that the cannabis sector has had, and Biden’s win getting everyone bullish about legalization——investors are chasing what is hot and dumping money into these ETFs. That is money that the ETFs then need to invest into cannabis stocks.
The ETFs especially need publicly traded cannabis companies with decent sized market caps like this one. This is a new blue chip cannabis operator. ALL of the ETFs will need to own it.
Remember——passive ETFs don’t think when they buy. They just buy. That means a wave of buying interest for this stock should be coming from the ETFs. I want to buy before they do!
The chairman of this company is nothing less than the biggest name in the history of the cannabis sector. Yes, THAT MAN. The man who built a $20 billion NASDAQ listed cannabis producer from scratch.
Anyone who got in on the ground floor with him on that venture and is still holding is very happy. A ground floor $10,000 investment has now turned into $3.7 million.
Now he is back with another ground floor opportunity. The business underlying this new stock has already established what I believe is a dominant position in a key market. This is a perfect setup for those of us who like to move BEFORE the rest of the market figures out what has happened.
The second cannabis great is Jason Wild, who is Chairman of TerrAscend (CSE-TER), and its largest shareholder. Wild has taken TerrAscend from $2/share – $20 in a year. Wild has invested $40+ million into this company.
This would be A Big Winner with this management at any time in the market. But now, the steep valuation upturn that’s happened in the last 10 weeks has given early investors something to be excited about.
This gift is why you need to be all over my e-mail tomorrow the moment it arrives. Like many of the IPOs we have seen over the past 6 months I think first day trading on this one is going to be exciting.
DO NOT MISS MY EMAIL TOMORROW!!!!!
The timing on this stock is so perfect. But forget that for a minute——because the business is every bit as good as the market setup.
The reason that I have been tracking this company for months now is because this a GREAT TEAM that has positioned itself to DOMINATE in a major cannabis market.
I know this story very well and I will fill you in on all of the nitty gritty details of the business tomorrow.
Here is the short version of what you are going to learn tomorrow:
1 – The balance sheet literally could not be better. Over $40 million of cash and no material debt. The balance sheet strength is going to be a huge competitive advantage.
2 – Real revenue with a strong growth trajectory. This isn’t a good things “might” happen story, this is a good things are already happening business. You know what else that means –NO MORE DILUTION.
3 – Growth, growth and more growth. They’ll go from 12 to 20+ dispensaries. They’ll go from 1,000 pounds per month of production and sales now to 3,000 pounds by June 2021 and to roughly 5,000 pounds per month by Year End.
That is a five-fold increase–which will drive sales, which will drive EBITDA, which is what drives stock market action.
4 –Just like Trulieve dominated Florida, this company is poised to dominate Michigan—which is rapidly becoming one of the top five largest cannabis markets in the United States.
5 – That Michigan stranglehold may set them up to be a key takeover candidate. As a growth investor that isn’t my ideal end scenario for a company like this. I prefer to let great growth stories keep growing.
The reality here is though that with the position these guys have in Michigan the really big multi-state operators are probably already circling.
6 – Again, the biggest creator of wealth in the history of the cannabis sector is the Chairman of this company. As you can imagine the rest of the team is also proven, successful and exactly who you want to be running a growth platform in this business.
And having Jason Wild invest $40 million of his own cash into this company just screams to the Market what kind of incredible value the IPO price was. That value will disappear quickly as the stock re-rates in the first few weeks, but for early investors it should—can’t say it will—work out very well.
Management here is a group of skilled professionals that are proven successful businessmen—many times over.
This is the right company, with the right people, in the right industry and I could not possibly be bringing it to you at a better time.
If you haven’t been able to figure out the name and ticker of this company from all of the hints I’ve given today…then watch for my e-mail tomorrow.
Then together we get to see how the market re-prices this IPO.