Legalization 2.0 comes into effect in Canada on October 17, paving the way for a whole host of alternative cannabis products, such as edibles and infused drinks, to hit shelves by mid-December. As companies prepare for the much-needed shakeup that the 2.0 market will bring, we look at some cannabis penny stocks that could be the biggest gainers as legal weed enters its second year.
For investors with a little appetite for risk, penny stocks can be a very attractive option to potentially flip a minimal input for a massive return. In an emerging industry such as the Canadian cannabis market, penny stock potential is even greater, particularly given the demand and interest in the industry.
Namaste Technologies (TSXV:N) (OTCQB:NXTTF) has hit a few bumps in the road during the first year of legal weed, but so has almost every other pot stock on the market, and it looks as though Namaste has put its troubles behind it under new CEO Meni Morim. Once described as "the Amazon of cannabis," a big title for a penny stock, Namaste Technologies has signed a number of deals lately that show signs that it may finally live up to this title. The most recent of these was with CannTx, to sell its range of premium BOWER medical products on its site.
Namaste has everything in its portfolio needed to capitalize on the 2.0 market. From an extensive range of vapes to its hugely popular CannMart site, which recently received a substantial purchase order from the province of British Columbia, the next few months look very busy for the company. Namaste stock is currently valued at just $0.44, which looks like one of the best cannabis penny stock bargains you'll find ahead of the 2.0 market.
Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) made gains towards the end of September after the company said it expected to turn profitable in Q3. Despite sliding throughout 2019, Aleafia Health has been one of the better performers in the cannabis space, with a 159% revenue increase reported in August being one of the highlights. Following that, CEO Geoffrey Bernic promised investors that “the best is yet to come,” and with the recent completion of phase two of its Ontario facility bringing an extra 115,000 kilograms of production capacity, he might just be right.
You can pick up Aleafia shares for just $0.85 right now, but don't be surprised to see this penny stock become one of the biggest gainers in the coming months.
What cannabis penny stocks are you keeping an eye on?
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