This is the biggest trend that we are predicting for the cannabis market in 2022…

We will say it until we’re blue in the face – the best cannabis companies to buy are American.

Yes, we know that cannabis is already legal in Canada, and is only legal in less than half of the country in the United States.

Yes, we know that popular investing apps like Robinhood don’t list U.S. pot stocks trading on the over-the-counter markets (OTCMKTs), which makes it easier to buy the Canadian companies that are available on the Nasdaq and New York Stock Exchange (NYSE).

And yes, we know that our elected officials can’t get out of their own way to legalize something that 91% of Americans want legalized.

Despite all of that, we’re going to share two numbers with you that prove our point: $4 billion and $23 billion.

$4 billion is the projected total sales for all of Canada in 2021. $23 billion is the projected total sales for all of the U.S.

And that’s all while cannabis is still federally illegal.

While full legalization is the ultimate end game, there are other catalysts that would kick off a massive stock price rally.

Just look at the most recent rally triggered by the Republican-backed cannabis reform bill that Rep. Nancy Mace (R-SC) submitted to the house, surprising even me. When this news dropped, stocks like Jushi Holdings Inc. (OTC: JUSHF) or Trulieve Cannabis Corp. (OTC: TCNNF) jumped between 10 to 30% in one day.

Imagine what would happen if the federal government passes something like the Secure and Fair Enforcement (SAFE) Banking Act, which would allow more U.S. cannabis operators to list on major stock exchanges like the Nasdaq and NYSE.

The 22.5 million users on Robinhood would have access to the best cannabis companies to own, sending their prices into the stratosphere.

Pension funds, such as California Public Employees’ Retirement Fund (CalPERS) and its $444 billion in assets would flood the market with money, buying up as many shares as they can.

The moneymaking potential in the U.S. cannabis industry is so large that even Canadian cannabis CEOs want in on the action.

They know that the Canadian cannabis market is saturated, and there isn’t much more money to be made. That’s why more and more Canadian operators are buying up or partnering with American cannabis companies in order to gain access to the explosive potential of the U.S. market.

I’m predicting that Canadian operators buying stake in the U.S. cannabis industry will be one of the biggest market trends in 2022. But I’m here to make you money, not rich cannabis executives in Canada.

Here’s how you can make more money than the Canadians currently flooding the market…

The Canadian Invasion

Take a look at some of the recent acquisitions and partnerships that Canadian operators have made in the U.S. cannabis industry:

  • June 2021: A subsidiary of Cronos Group Inc. (Nasdaq: CRON) has purchased the option to acquire a 10.5% stake in Chicago-based PharmaCann for $110.4 million.
  • August 2021: Tilray Inc. (Nasdaq: TLRY) acquired a 21% ownership interest in California-based MedMen Enterprises Inc. (OTC: MMNFF) through purchasing $166 million worth of stock warrants and convertible debt.
  • August 2021: Village Farms International Inc. (Nasdaq: VFF) acquired Colorado-based Balanced Health Botanicals, a CBD company, for $75 million.

Then, in October, Canopy Growth Corp. (NYSE: CGC) announced its intent to acquire Wana Brands, the top edible producer by market share in North America, for $297.5 million.

That deal is contingent on federal legalization, and I expect these kinds of deals to ramp up even more in the next year as the U.S. cannabis market experiences explosive growth.

It’s one of the biggest trends I’m watching for in 2022.

But while most of the Canadian acquisitions will be for private U.S. operators, you have the opportunity to make a broad investment into some of the best cannabis companies in the U.S. that have so much more profit potential…

You can do this by owning shares of AdvisorShares Pure Cannabis ETF (NYSE: MSOS).

How to Make More Money From Cannabis Than Canada Ever Could

MSOS is an exchange-traded fund (ETF), which you can think of as a basket of stocks that gives you exposure to several different companies.

And while most cannabis ETFs hold a mixture of Canadian companies and pick-and-shovel plays with indirect ties to cannabis, MSOS gives you access to the top multistate operators (MSOs) in the U.S. with a growing national footprint.

Now, while you will always make more money from cannabis investing by owning individual companies, there are a lot of valid reasons to opt for an ETF like MSOS.

If you’re a risk-averse investor, you may be looking for an investment vehicle that allows you to profit from the U.S. cannabis industry’s growth as a whole with less potential for volatility. If that’s the case, you might feel more comfortable adding MSOS to your portfolio as opposed to buying the individual stocks that it holds, which have more potential for volatility.

Plus, buying shares of MSOS gives you ownership of those companies anyway. Check out its top 10 cream of the crop portfolio holdings as of November 16:

Click to Enlarge

You should recognize names like Trulieve, Green Thumb Industries (OTC: GTIBF), Curaleaf Holdings Inc. (OTC: CURLF), and Cresco Labs Inc. (OTC: CRLBF), which are all members of our “Big Four” of U.S. cannabis MSOs.

Owning shares of MSOS gives you exposure to each company without having to buy each stock individually.

And these companies are virtually guaranteed to make you money before and after full legalization in the U.S. Click here to check out their most recent earnings reports, because the proof is in the pudding.

With this new Republican-led legalization effort, the pot stock market beginning to rebound, and exciting new earnings from top U.S. cannabis operators, we are very excited about what’s ahead.

Subscribers to NICI Membership have even more pot stock picks waiting for them in the model portfoliothat is stacked with the top U.S. operators to own.

Subscribe today and receive access to that list, plus a full library of exclusive cannabis investing resources and new trade recommendations sent directly to your inbox each month from the insiders that know the industry best. Click here to join.

To your investing success,

Danny Brody
Executive Director, National Institute for Cannabis Investors


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