There has been turmoil in the cannabis industry over the course of the past few months. But it needs to be reiterated that the sector remains a hugely valuable one. Quarterly results of some of the marijuana penny stocks is a case in point. If there is room for a lot of growth in a sector, then it is also possible for smaller operators to grow quickly to turn into big players.

Therefore, it is worthwhile to have a look at pot penny stocks. That being said, you need to be careful and conduct thorough research before buying marijuana stocks. One of the big focus points in the coming months happens in October. This is when Canada is slated to legalize the other half of cannabis – derivatives.

This means products like THC vapes, edibles, and non-flower related products will become legal for sale. With this potential catalyst in mind here is a look some cannabis penny stocks to watch before October’s deadline.

Marijuana Penny Stocks To Watch #1:
Auxly Cannabis (CBWTF)

The first marijuana stock to watch; Auxly Cannabis Group Inc. (TSXV:XLY) (CBWTF Stock Report). CBTWF stock has performed impressively over the course of the past month. During the period, the Auxly Cannabis stock jumped by as much as 51.5%. As a matter of fact, it remains one of the top-performing marijuana penny stocks in the industry. The biggest trigger for the surge in the stock came last month when Auxly raised $123 million in investment from Imperial Brands.

The investment will give Imperial a stake of 19.9% in the company. The investment will see Auxly getting the advantage of using Imperial Brands’ massive distribution network and that could help the company drive its valuation much beyond its current $525 million.

It has operations in Uruguay as well and it remains to be seen how it manages to expand in the South American nation. Furthermore, this week Auxly reported that it will act as the financial sponsor for the creation of a hemp farming co-operative. It consists of six individual hemp license holders pursuant to the Cannabis Act located in Prince Edward Island.

“We are very excited to partner with experienced farmers in the province of PEI. I’m proud of our Dosecann team for finding this opportunity and being able to demonstrate our continued support for Atlantic Canada. This project ensures our ability to meet the growing market demand for wellness and adult-use cannabidiol (CBD)-based products, and enhances our commitment to bringing innovative, branded derivative cannabis products to Canadian consumers.”

Hugo Alves, President of Auxly

Marijuana Penny Stocks To Watch #2:
The Supreme Cannabis (SPRWF)

The other company on the marijuana penny stocks watch list is The Supreme Cannabis Company (TSX:FIRE) (SPRWF Stock Report). Currently, the company has a market cap of $424 million. However, the impressive 47% gains made by the stock over the last 2 weeks have brought it into the limelight.

Supreme recently completed the acquisition of Truverra Inc. The deal sees the company purchasing all outstanding shares of the private cannabis company. With the expected attention to come in Canada’s pot extraction legalization, this could be an interesting move for Supreme. Truverra’s subsidiary, Canadian Clinical Cannabinoids Inc., has the equipment and GMP quality systems to meet the potential demands of the market for extraction and purification services.

Since making the announcement, this marijuana penny stock has moved up once again. Just a few weeks ago, SPRWF stock was sitting at lows of $0.85. Now, on Tuesday, this pot stock has already hit highs of $1.29.