Not all IPOs are created equal. The biggest winners, the next Tilray, are going to thrive in at least one of three key areas of focus. These are areas where companies can truly differentiate themselves from the crowd.

It’s about that time of year to start looking ahead at what the big stories of 2019 will be.

One of the top storylines of at least the first half of the new year will be more of a continuation and an acceleration of a trend than something brand new happening. I’m talking specifically about cannabis IPOs (Initial Public Offering).

Dozens of companies waited out the rush to public exchanges in 2016 to work on their businesses and teams. As a result, many were better prepared to pursue an IPO – or an RTO (reverse takeover) as a backdoor way to begin offering stock faster. They’re better, more investment-worthy because of it.

Many of these have made it to market already. Names likes Tilray Inc., MedMen Enterprises, and Acreage Holdings were headline-grabbers because of their impact on the industry in Canada, the United States, outside of North America, or all of the above.

Many more will follow. I remember sitting down in New York this summer with an executive from a cannabis pick-and-shovel play that we eventually recommended for my Cannabis Investor’s Report portfolio. He said at least 100 cannabis-related companies would go public within a year. The prediction seemed bold or even rose-colored then. But not now.

By my count, there are at least three dozen companies – including some real gems – officially in the process of going public. That doesn’t count many more that are still kicking the tires and weighing options. IPO expert Danny Brody and I track them diligently for the Institute‘s elite trading research service, The Cannabis IPO Insider.

When looking at the new or soon-to-become additions to public markets, there are common themes any investor needs to look for. You need to see a strong management team blend people with cannabis industry knowledge and important contacts with someone who has had success making money for shareholders in other areas (mainstream retail, operations, mergers & acquisition deals, etc.). You also want to know that there is a market for what this company is going to sell or do and that the product or service they’re offering is of high quality. Just as important, you need to see that the company has demonstrated expertise in branding or has a strong plan to build their brand from here on in a hurry.

That said, not all IPOs are created equal. The biggest winners, the next Tilray, are going to thrive in at least one of three key areas of focus. These are areas where companies can truly differentiate themselves from the crowd.

Let me show you where the winners are going to be…

Winner No. 1: The Immediate Acquisition Target

One of the reasons I want you to invest in the cannabis industry now is because big institutional money and the top players from Big Tobacco and Big Pharma are still on the sidelines, waiting to see how the federal regulatory environment will play out – something we already know.

But consolidation is coming.

It’s important to know that there is rarely a giant in any industry that didn’t get there by acquiring other companies, and they only stay there by continuously acquiring competitors and companies that bring them new business lines. To pick one example, over the years The Coca-Cola Co. has purchased Minute Maid juices, Barq’s Root Beer, Sprite, Dasani water, Odwalla fruit juices, Honest Tea, Zico coconut water, Costa Coffee, and more.

As companies like Canopy Growth Corp. and Aurora Cannabis fight to be at the top of the cannabis industry, they will have to acquire smaller companies with good brands and products.

According to our team of analysts, now’s the time to strike on two upcoming, high-profile cannabis IPOs. And I’m inviting you to join them now before the gains start rolling in. These IPOs could rapidly become our next 1000% winners shortly after their market debut. Please click the above links to find out more.

Even as companies go public, they have an eye on this. And it would be crazy for them not to – the sums of money that will be out there would have been unfathomable as recently as six months ago. But remember, in August, Constellation Brands handed over $3.8 billion to Canopy for just over a one-third stake in the business.

So the companies with something important to offer these big fish companies looking to make a buyout are the ones that can go from new IPO to fully absorbed in under a year.

We saw this with MedReleaf Corp. The Canadian company debuted on markets in mid-2017 with more funded capacity than some of its larger competitors and, importantly, smart deals to allow it access to European markets.

Aurora coveted that capacity and those smart deals, and in July 2017 – 13 months after MedReleaf first traded – bought out MedReleaf. Any investor who got in on the MedReleaf IPO price of CAD$9.50 got a return of 248% in just over a year.

And that’s for a stock that stumbled out of the gate in the first days of its IPO. The stock immediately sold off 21% the first day of trading and was quickly – and foolishly – written off as a “failure” by the mainstream. Some of my researchers from the Institute worked with technology stock expert Michael Robinson, a founding member of the NICI advisory board, when he was preparing to recommend MedReleaf pre-IPO. And they can tell the happy tales of customers who were patient during the early losses.

The road to cannabis investing fortunes is, of course, not always a straight line up.

Winner No. 2: The American Unicorns Are (Still) Coming

Several big name, big cap, multi-state cannabis companies from the United States have gone public this year.

Almost all of them have gone to the Canadian Securities Exchange (CSE). This includes one of the newest to public exchanges, Acreage Holdings. You probably already knew that name because Acreage made several high-profile acquisitions, beefed up management, raised $119 million of capital from private investors, and brought in former Speaker of the House John Boehner as a board member, spokesman, and high-profile advocate.

Granted, Acreage also went public with a price that was too high at $25 per share, and the initial reaction from investors was poor. It dropped 19% on its first day of trading. That said, like a handful of other American companies, it is an extremely well-run company overall and it will be continue to grow as one of the top forces in an American cannabis market still ready to pop.

More companies like Acreage, but smaller, are on the way. Just last week one of them went from a privately held underdog to a real competitor to Acreage when it listed on the CSE and merged with another company to greatly increase its ability to be one of the big players.

Whether these companies will catch fire now or down the road a bit remains to be seen. But they can take a lot from the experience of MedMen Enterprises Inc.

In May, MedMen showed a path to listing in Canada – they did so with a successful RTO.

MedMen runs high-end cannabis retail facilities in the U.S., mostly on the coasts. Additionally, through its joint venture with Cronos Group, MedMen can now open retail stores, with their upscale look and feel, throughout Canada.

This focus on customer experience is paying off. One way to see this is through the revenue they generate per square foot of floor space and compare that to other high-end retailers. And its sales are significant. In the second quarter of 2018 alone, MedMen generated $19.2 million in sales and got on the track to generate over $100 million in sales per year.

As for its move to public markets, MedMen raised CAD$143 million at $5.25 per share, giving them a market cap of CAD$2.14 billion, or USD$1.76 billion – making them a marijuana “unicorn.”

With its template – and now others in its wake – there is no reason for American companies to remain on the sidelines as underfunded private companies.

Winner No. 3: Finding The Niche

The “middle ground” in the cannabis industry is evaporating.

The short version is we’re in the early days of an industry-wide shakeout right now. There will be big companies that get bigger through mergers and acquisitions – and this is where most of the market share and market caps will be. But, similar to the craft beer industry thriving throughout North America, well-run smaller producers with elite-level products will be able to carve out a space by going after niche customers.

These companies aren’t looking to become the biggest thing in cannabis. They’re looking to hit a corner of the industry that isn’t being served well or at all, and they want to make sure they keep doing it better than anyone else.

An IPO that broke new ground in this regard was for The Green Organic Dutchman (TGOD), of which my colleague Danny Brody is a vice president.

TGOD focused on high-end organic cannabis. In some ways, they’re the anti-Canopy.

It debuted on the Toronto Stock Exchange on May 2 of this year for CAD$3.65 per share with a CAD$115 million raise, the largest raise by a cannabis company at the time. And the money wasn’t institutional – Brody and co. believed that their targeting of a lucrative niche would bring out private investors in droves. It worked.

A real advantage for the company is the 30% premium that organic cannabis commands. As in other sectors, consumers like the organic and sustainable themes and are willing to pay up.

As a licensed R&D company, the company focuses on intellectual property development around oil extraction techniques and cannabis genetics and breeding programs. Organic and sustainable production runs deep in their corporate veins.

It doesn’t hurt that TGOD is also one of the lowest cost producers in the industry. At less than $1 per gram, its production cost paired with their premium pricing gives The Green Organic Dutchman showed potentially attractive profit margins down the road. And investors came running to this stock after it went public.

The lesson learned here is that companies don’t have to be focused on world market domination to be a great IPO to target.

The companies that are coming public now are keenly aware of all of these recent success stories.

The template is there. The interest in cannabis investing is sky high. And the regulatory atmosphere has never been more accommodating – with more help on the way.

Thanks for being an important part of the National Institute for Cannabis Investors,

Greg Miller
Executive Director, National Institute for Cannabis Investors


Comments

47 responses to “One of These Three IPOs Will Give Us the Next Moonshot, Tilray-Type Win”

  1. I view the information provided to be of benefit to me and certainly appreciate all work being done “behind the scenes”. I will be “all in”.

    • what company do you think is the best IPO? I am new to this sort of stuff and would really appreciate it if someone could tell me what company and why?

  2. I just evaluated your pick on Mon. and set my alerts! Today you have sealed it for me. I believe we have a major player here with the merger. Sky’s the limit! Thanks a MIOLLION!!! Greg.

  3. How do we find out about pre IPO’s? I get these emails that want me to sign up for some program to get in on an IPO that’s about to go public at some low pre IPO price. How do we find out about these before they hit the market without signing up for another publication? Isn’t that what you guys are for? I would like to get this information and invest some of my hard earned cash to help some of these companies before they go public and make a killing when they do go public. That kind of information would really help us little guys become millionaires.
    Greg

  4. just a quick question as a fairly new investor. when buying shares of any company on pink or grey sheets,does that mean I have shares when they do their IPO? thanks in advance Larry

  5. I agree with Greg. The programs l ordered say you will give us IPOs at the beginning of every month. I can’t find them. Please direct us so we can get in in time. Thank you

  6. hi
    I agree I’m supposed to be an elite and I’m having a hard time knowing what and where and how, plus overwhelmed at times with all the reading and video watching.
    I actually went to a publisher Webner back a few months ago where I was able to join in and purchase IPO and after listing for an hour and filled with excitement discovered I had to put up 10,000 plus whatever amount of money to pay for the shares I wanted to buy.
    after the IPO is finished why can’t we get the option to buy the stock at the amount before the public sees the stock .being a founder and I upgraded to an a elite lifer I’m lost trying to find all I’m entitled too.
    if NICI is so sure about their research and investigations about the green pot stock, help us make good choices so we can make all the thousands, millions and trillions that will be available because, if we make money you make money because #1 we stay with NICI and we tell others. #2 because of the caring about the little guy I believe through word of mouth, we all will have a chance to become like the unsinkable Molly Brown and all because God brought powerful educated men together and created NICI so middle-class Canadians and American families. and you’re wanting to see us bring this money into our future generations. So our grandchildren and great-grandchildren are not knowing poverty. I’m not wining or angry I think this is the best investors group out there and I feel very proud to be apart of this. I’m probably over reacting because I’m over whelmed and within a few months I will be able to find everything with my eyes closed.
    thank you for having this place to write what we are feeling or needing a question answered, and for other reasons
    please dont be afended if i wrote something and it sounds strange ill say I’m sorry for it now

  7. Yes, I have never purchased stocks quite like this, although looking forward to using this program, your knowledge and expertise for a prosperous future. Thank You in Advance.

  8. You need to supply a road map for your web site for people that are new to your site and cannabis in general. Thanks.

  9. All kidding aside lady’s and gentlemen, i’m new at investing and don’t know a thing about it.
    I’ve been trying to find a good platfoarm to put a bid in on some of these stocks I’ve been reading about. I guess I’m wondering if anyone could direct me in the right direction on this matter so I can really get started on my jurny to the promissed land.
    It sure would be nice if NICI

  10. Had their own platform to place an order or bet, whatever you accually call it.
    sorry about that, I pussed the wrong button.
    Thanking you in advance, Ralph H

  11. Look for the Action to Take box. If it says to buy, it will tell you how much, and it will tell you not to purchase more than an amount. I’m reading to understand and learn, and that’s what I got out of it. They explain the reasons to buy and not to buy and they give you examples. I’m expecting a purchase between now and the 31st of this month. That’s what I’ve come to understand. Hope this encourages some of you, at least one of you. I’m just waiting patiently and with faith and belief. The best success for you. Thanks

  12. All of u have great points, like a lot of u its my first time with a plan to purchase a lot of stock but to still be diversified at the same time. We all have to remember this is unchartered territory for most and information is key to our success. I agree with Greg a lot of IPO info would be needed to be very successful. The area of IPO’s was very intriguing to me but have found now to be listening very closely to what NICI recommends and have ownership in 3 different stocks and getting a plan together on continuing to keep padding stock that I buy with more shares thru out 2019. Looking at it as a casual run not a sprint. From what I have read to be very wealthy at this will require good growth stocks picked by us and reinvesting it back into new companies that they say will come in waves or startups. So I guess this will take some time but “Stay Thirsty My Friends”.. 🙂

  13. Hello fellow investors. Im new at this and hope the gentlemen of NICI take us ELITE INVESTORS down the yellow brick road. Thank you Tin Man

  14. I agree will most comments here. I too am fairly new to this arena. I thought everything would be more understandable terms but it gets confusing with all the reading and videos and member upgrades popping up all the time! Like all of you here, I just want a little slice of the cannabis pie! Oh that sounds like a good idea , cannabis pie! Anyway, all the best to all…

  15. I’m new as a lot of people on here I see. For the last month I’ve done nothing but read everything on this web site that I can. Your list of stocks picks are great, but then I read in another area about stock that’s not on your list. if its good stock why is not on the list, this has kept me confused.I feel I have been left on the outside. I am dedicated to learning from you. I’m on SSI and would like make a little income to help my family. All the emails with the e-books & plans to make me rich I don’t want those. I want info from you that’s why I chose your guidance

  16. I am an investor that has subscribed to several publications in the last few years. I have found that any information about investing is always helpful, and certainty inspiring at times! There are several different modes of business opportunities that will avail themselves in the next few years. I have also learned that the stock market is a wild , and sometimes uncontrollable animal. Most of these investment subscriptions out there are run by really smart people, but even they will admit that investing is speculative. Use your best judgment, and never use money you cannot afford to loose! Happy investing!!

  17. One other thing.If you are on here now the answers I seek can come from any member not just NICI.This is my first big step into the stock world period but this whole medical Cannabis being needed all over the world means the world to me my family and millions of people out there needing it.Thanks GW Walker

  18. Ask Oscar. Their are many fish in the sea’s..
    Swimming in schools is a easy way to get caught when casting a wide net. If your not willing to swim away and dive deeper into taking risks…then sharks 🦈 will pick off the weakest and scare those remaining into hiding. You don’t become a big fish unless your Smart ! Think to survive and you’ll have a whale as a friend .

  19. As a subscriber to the Cannabis IPO Insider, my understanding is that I will get specific email advice on what stocks and when their IPOs will be launched. Is this a correct understanding?

  20. Any chance, Nici can create a angel investment fund for smaller Investor’s . Allow a investor to pony up $10,000 with other investors so we can get a small piece of ten to twenty companies instead of just one that we have to hit. If One hits or loses, We all share. Create multiple ones with different companies.

  21. Just join, haven’t done anything, except reading to learn what to do and not to do. Haven’t even opened a online account to make a trade? Robinhood seem free to use and no commission fee? Spoke to my financial planner and he recommend opening an IRA account and can transfer funds from IRA to IRA for tax benefit…wondering what y’all using Fidelity? etc

  22. Still digesting. But appreciate all the shared info.
    It was somewhat confusing that some of the articles were from last year presentations.
    I am now headed to NASDAQ to make some purchases.

  23. Where do IPO Insiders go to find your pick for the next IPO? Is this IPO info given in emails or on your website? Help! What was your latest recommended IPO?

  24. Could I request a response from members of the IPO Insiders on whether or not it is a good option to sign up for this service if you are a small investor? I’m an elite member and considering joining but would like some input from existing members. From some of the comments I’ve seen it doesn’t seem very efficient. Please reply to this comment so I can help myself and other elite members better understand this service
    Thanks!

  25. Can someone tell me what the cheapest online brokerage firm is? One that I can do the stock buying in Canada. I know they all have fees but I just want some advice from you all.

  26. I’ve been a member since November last year and have upgraded to lifetime IPO member and it is very confusing where to find things, especially the IPO’s we are being advised to buy. Others on here are having same problems, would like someone to answer our questions. I would also like to know if an IPO was suggested with how much to buy it for, prior to me becoming a member or maybe I just didn’t buy it at the time would you still suggest that I buy it?

  27. I agree whole hearted with comments about dates and clear instructions for the level of membership that an individual has without having to thread through volumes of emails and comments that are very time consuming. As was said, I jointed at the level that I did to get the CLEAR recommendations from NICI. Give me the two top IPO’s recommended each month and then if I want to review more info, let me click on the IPO recommended and have all the comments, videos and research pop up for my review. For those with higher levels of membership I would request the same thing. At the level of Angel Investor, send me an email specifically stating what the recommendation is and what is needed to invest. I can then click a link that will give me all the research accumulated on that recommendation,.
    The fact that we have paid for membership shows that we are trusting NICI to give us their top recommendations.
    Bottom line, just give me the stock recommendation and have the research available for my review if I’m interested. The research and videos only serve to help me determine how much I want to invest.
    Sorry for being so wordy

  28. How long can the CBD craze continue? CBD does have great potential but as it is sold now it will be a disappointment for almost all who buy it. If you look at clinical trials using pure CBD the dosages are in the hundreds of mg. A person will take 300 mg to 600 mg a day for weeks. Even children who use pure CBD take 2 mg to 3 mg per lb of body weight. So for anything besides seizure disorders a person who pays $50 for a bottle of 500 mg of CBD really has only 1 or 2 doses and most likely not buy a second bottle. I urge all of you to buy a bottle use as directed and see if it helps any problems you have. It may help for a few days, the placebo effect at work but keep using as see for your self it does any good.

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