The global pandemic has made the situation even worse, and investors now are looking for companies that will simply survive. There are only two names in the legal-marijuana sector that investors can look to for relative safety.
Cannabis dispensaries saw their sales soar by double digits. One company dealt with hour-long lines at its Pennsylvania stores. In California, for instance, daily sales were up by more than 50% during the first few weeks of March and reached a peak of 159% mid-month.
Jamie Pearson, CEO of California-based Bhang Inc, which makes cannabis-infused beverages, chocolates and other products, said sales were booming and should boost revenue and profits this quarter.
Roy Bingham, CEO of cannabis market research firm BDS Analytics, said he expects the industry to not only ride out the coming economic storm but continue to grow. His firm has yet to revise its prediction of a 30% jump to $17 billion in U.S. retail sales for 2020. “First, you have this existing core demand; 65% of cannabis consumers consume on a daily basis,” said Bingham. “And now you have people who can’t go to the gym or the bar and are locked up at home, where about half of all cannabis consumptions happens anyway.”
The growth in cannabis sales appears to have brought some relief to cannabis stocks, which have been going through a rough period.
Cann American Corp. (OTC: CNNA) operates as a holding company for the sake of developing assets within the legal cannabis and hemp industries. Earlier this month, the company announce an equity investment in Fly Beverage Corp.
Fly Beverage, based in Northern California, specializes in cannabis infused beverages for the California dispensary market. The company’s brands consist of Nectr and Matt’s High Soda.
Nectr, offers four flavors of sparkling water with 10mg THC per bottle. The Nectr line of drinks are already on shelves in thirty dispensaries throughout California. You can learn more about Nectr at:
Matt’s High Soda is in the process of launching their first shipments of Uncle Arnie’s Iced Tea Lemonade to dispensaries this week. Uncle Arnie’s Iced Tea Lemonade consists of 100mg THC per bottle making it the highest THC dosage edible serving the California dispensary market across all categories. You can learn more about Uncle Arnie’s and Matt’s High Soda at:
Fly Beverage is 77% owned by Spacestation. A leading cannabis beverage co-packer for the California infused beverage industry. Because of Spacestation’s direct involvement in these beverage lines while also serving the fulfillment needs of some of the biggest dispensary beverage brands in California, Cann American management has determined that Fly Beverage was uniquely positioned to capture significant market share of the California market and an early stage investment was in the best interest of the company and shareholders. You can learn more about Spacestation at: https://flyspacestation.com/
Cann American Corp.’s investment will enable Fly Beverage to reach their goals of selling to 50 dispensaries by the end of the month and reaching 100 dispensaries in three months. Fly Beverage is also preparing to have a professional independent valuation of the company performed. Current estimates for Fly Beverage are between $8mm to $11mm valuation.
CNNA is trading at a discount compared to other players. And several upcoming catalysts could catapult shares higher. In our view, a bounce is all but guaranteed. Use this to your advantage to make some money back. Right now, all of the fear and negativity is priced in. That means, Cann American Corp. (OTC: CNNA) in the short-term, have nowhere to go but up.
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