Marijuana Stocks To Focus On In 2022
it seems that marijuana stocks before the New Year starts are picking up some momentum. In fact this past week there has been a slight increase in trading. Now, this could be due to the end of the year and people buying more marijuana stocks. Most times when you buy stocks things rise and when you sell they drop. Yet this can also happen in reverse at times. Still many are looking towards the future as they feel 2022 could be the year cannabis stocks see more consistency.
However, this will dependant upon a few things. For starters, if federal reform fails to pass in 2022 some feel we may have a repeat of 2021. For those who have not been paying attention this past year has been a tough time for marijuana stock investors. From early 2021 the entire sector has been going through a downtrend. So if ending prohibition or failure to enact cannabis banking the concern is a further drop in trading for marijuana stocks.
Still, beyond just federal reform there are other possible reasons that 2022 could be a comeback year for marijuana stocks. As of January 1st, some states have updated their rules and regulations to their current marijuana industry. Following this, there is also the potential passing of cannabis legislation in new states. Which will add more value to the industry and set up new markets. As well new team members storefronts products and services. In addition to certain M&A that happened in 2021 which will be more progress in 2022.
Marijuana Stocks And The Cannabis Industry In 2022
With all of the above, this should be enough for those invested in legal cannabis to not worry about marijuana stocks recovering. Yet with how unpredictable and volatile the sector is there is no concrete way to know for sure. Nevertheless, there is great anticipation for 2022 as there is much in the works. The marijuana stocks to watch below are just a few to keep your eyes on during this new year.
Marijuana Stocks To Watch In 2022
- Sundial Growers Inc. (NASDAQ:SNDL)
- Neptune Wellness Solutions Inc. (NASDAQ:NEPT)
Sundial Growers Inc.
Sundial Growers Inc. engages in the production and marketing of cannabis products for the adult-use market in Canada. It produces and distributes inhalable products, such as flower, pre-rolls, and vapes. The company offers its products under the Top Leaf, Sundial Cannabis, Palmetto. As well as Grasslands brands. Sundial Growers Inc. In recent news, the company has reiterated its commitment to the transaction with Alcanna.
As well Sundial has announced ISS support for the plan of arrangement. Sundial is committed to the existing consideration offered to Alcanna shareholders. Whereby Alcanna’s shareholders will receive, for each common share of Alcanna held, 10.69 common shares of Sundial. Based on this fixed exchange ratio and the closing price of Sundial Shares on December 7, 2021. The consideration represents a deemed value of approximately $8.08 per Alcanna Share.
This value implies an 11% premium from the closing price of Alcanna Shares on the TSX as of December 7, 2021. At this implied price and based on Sundial’s 30-day average trading volumes as of December 7, 2021. This would take approximately 3 days of liquidity for holders of Alcanna Shares to dispose of all Sundial Shares received pursuant to the Arrangement.
Words From The CEO
Commenting on the Arrangement, Sundial’s CEO Zach George stated, “Despite recent market volatility, we remain committed to our plan of arrangement with Alcanna. This plan received the unanimous support of Alcanna’s board and management, in addition to the support of global governance advisor ISS. Sundial shareholders demand discipline when it comes to capital deployment, and our strong capital base is in high demand in the current environment, which is seeing increasing levels of financial distress. We respect the right of Alcanna shareholders to vote for or against the Arrangement at the upcoming meeting.”
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Neptune Wellness Solutions Inc.
Neptune Wellness Solutions Inc. operates as an integrated health and wellness company. It builds a portfolio of lifestyle brands and consumer packaged goods products under the Biodroga Neutraceuticals, Forest Remedies. As well as Ocean Remedies, Neptune Wellness, Mood Ring, PanHash, Sprout, Nosh, and NurturMe brands. The company offers turnkey product development and supply chain solutions to business customers.
This is done in various niches like health and wellness verticals, such as legal cannabis and hemp. On December 20th the company announced it has extended its Mood Ring product line with in-demand pre-rolls. These products will be launched in Ontario and Alberta. With the introduction of pre-rolls, Neptune now has an offering for every major cannabis product category in Canada. In addition, Neptune will introduce several new Mood Ring product formats across Canada.
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Words From The Company
“The pre-roll market is booming in Canada, and we’re pleased to introduce this in-demand format to our popular Mood Ring product mix,” said Michael Cammarata, Chief Executive Officer and President of Neptune. “With sales up almost 200% year over year, pre-rolls have become a top three best-selling product category in Ontario as consumers increasingly seek them out for their accessibility and convenience.”