This Deal Could Launch a Cannabis Empire in the U.S.
Through a bit of creative maneuvering, this one company is setting itself up for huge profits once legalization occurs in the States.
Investor sentiment in the cannabis business has been up and down over the last several years as excitement over the massive potential that the industry has ebbs and flows.
Canada’s countrywide legalization of cannabis in October 2018 was a huge catalyst for pot stocks, with the top Canadian companies seeing several hundred percent gains in the months following legalization.
But since that time, Canadian cannabis stocks have had a hard time maintaining the level of excitement around them that they once had.
Clearly, the next big catalyst for the cannabis industry is the United States.
Legalization in the U.S. – or even just removing marijuana from the listed of controlled substances and allowing states to set their own laws – would open a floodgate of profits for cannabis companies and their investors.
Progress on that front has been slow, despite the majority of Americans supporting the legalization of cannabis, according to various polls.
But many in the industry are certain that U.S. legalization is a foregone conclusion – it’s just a matter of time.
And this week, my favorite Canadian cannabis company found a way to break into the U.S. market early.
Where’s the money?
Yesterday, Canadian cannabis giant Tilray, Inc. (TLRY) announced a deal with California-based cannabis producer MedMen Enterprises Inc. (MMNFF).
The terms of the deal include Tilray, along with other strategic investors, acquiring $168.5 million of convertible debt in Medmen. That debt was originally held by certain funds affiliated with Gotham Green Partners, LLC.
Tilray will seek to pay Gotham Green for its stake in MedMen with 9 million new shares, pending shareholder approval.
The deal gives Tilray, which is listed on the Nasdaq and thus cannot have any cannabis operations in the U.S., a way to benefit from the growing U.S. cannabis market.
It also holds the promise of an even bigger move from Tilray if and when the U.S. legalizes cannabis.
According to Tilray CEO Irwin Simon, the company could potentially make a move to fully acquire MedMen once cannabis becomes legal in the U.S. – giving it a pathway to quickly establish its brand and grab market share.
Investors looking for massive profit potential in the emerging U.S. market should take note.
How do I get some?
After news of the deal surfaced, Tilray stock climbed more than 7% before falling back down to just above a 1% gain from the prior day’s close.
But I believe that Tilray’s latest deal gives it more room to run to the upside.
While not an apples to apples comparison, consider that Canopy Growth Corp. (GCG) – another major Canadian cannabis producer – gained more than 19% when it announced its deal to acquire the U.S.-based Acreage Holdings, pending the legalization of cannabis in the U.S.
In the end, this deal gives Tilray a great foothold from which to launch its entry into the U.S. market once cannabis legislation loosens.
And while Tilray shares are still floating near their levels before the deal was announced, now looks like a great time to buy shares.
This massive deal could be your key to unbelievable profits
Right now, legendary deal makers, A-list celebrities, and an all-star management team are all lining up behind one incredible.
They’re projecting that this one tiny company has the potential to grow to a $1 billion valuation in the next five years – a 2,500% gain over its current value.
Streaming video has revolutionized the media, industry, and this company’s product is being called “The Netflix of game night.”
Agreements have been signed or are pending with some of the biggest franchises on the planet, including Disney Pixar, Marvel, and Lucasfilm (Star Wars). The world’s biggest game shows like Jeopardy!, Scene It?, Wheel of Fortune, The Price Is Right are jumping aboard too.
It could be the next big thing in entertainment, and this is your opportunity to get in on the ground floor of this incredible opportunity before the rest of the market has a chance.
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