Cronos Group CRON missed earnings expectations by 50.0% in the third quarter of 2018. Let us see what is in store for the fourth quarter.

Factors in Focus

Cronos is a globally diversified and vertically integrated cannabis company. The company has footprint in four continents.

Cronos operates two wholly-owned Canadian licensed producers regulated under Health Canada’s Access to Cannabis for Medical Purposes Regulations — Peace Naturals Project Inc., which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd., which is based in the Okanagan Valley, British Columbia.

It was recently announced that Dad & Dudes one of the pioneering companies manufacturing craft beer infused with CBD was acquired by the company specializing in cannabis brands Cannabiniers which is based in San Diego. Dad & Dudes was founded by Mason Hembree with his father Thomas in 2010.

Initially, the company was not dealing with any CBD products. It was mainly focusing on eight-inch pizzas and craft beer. The first CBD infused beer from the company had a rather unusual name, the Secret Stash of George Washington and was launched in the year 2015 at the Great American Beer Festival at Denver.

Canopy Growth Corp (NYSE:CGC) reported stellar third-quarter results on February 14, setting the hearts of cannabis bulls aflutter. Since then, the company has given marijuana investors ever more reason to cheer.

Canopy Growth announced that it will be working with Alimentation Couche-Tard Inc (OTCMKTS:ANCTF, TSE:ATD), which has a global footprint of 16,000 convenience stores (including 7,800 in the U.S.), to launch a premium cannabis brand. This new strategic partnership could open the door to global cannabis stores and be a massive first-to-market win for Canopy Growth.

Organigram Holdings Inc.(TSXV:OGI), one of the Canadian cannabis stocks, Tuesday announced that it has signed a letter of intent with the Société Québécoise du Cannabis (SQDC) to supply recreational cannabis.

With this agreement in place, Organigram’s products will now be available in all 10 Canadian provinces.

The marijuana stock market has seen a large bullish run over the course of the past few years, but especially in the past month or so. Over that time period, many new companies in the industry have been able to push forward with large amounts of innovation and new ideas for the betterment of the consumers who rely on them.

For investors, however, the industry has never been better. Acceptance of cannabis nationwide in the U.S. and especially in Canada has reached an all-time high. With the majority of U.S. states having some form of legal cannabis whether it be recreational or medicinal, more companies than ever are seeing success in the industry.

The marijuana industry is growing at an extremely quick pace, and it's not hard to understand why. Following the legalization of recreational cannabis in Canada this past October, as well as steady legalizations at the state level in the U.S., the pot industry is now a legitimate business model. Since it's now a validated industry, investment dollars are pouring in, and so is demand for pot products.

Organigram Holdings Inc. (TSX VENTURE: OGI) (OGRMF), announced today that the Company has elected to exercise its right under the indenture (the “Indenture”) governing the Company’s 6.0% convertible unsecured debentures due January 31, 2020 (the “Debentures”) to convert (the “Conversion”) all of the principal amount outstanding of the remaining Debentures on April 1, 2019 (the “Conversion Date”) into common shares of the Company (the “Common Shares”).

Pursuant to the terms of the Indenture, the Company may force the conversion of the Debentures at the conversion price of $5.42 per Common Share when the volume weighted average trading price (“VWAP”) of the Common Shares on the TSX Venture Exchange (the “Exchange”) for 10 consecutive trading days exceeds $7.05.

New Hampshire, Florida move bills to legalize recreational cannabis 

Wednesday was a day of highs and lows when it came to cannabis stocks, with leading companies in the sector shaking off the gloom hitting Wall Street’s main markets before being dragged backward.

The North American Marijuana Index, which tracks top cannabis stocks in the US and Canada, fell 0.5% to hit 290.34.

Buds

At the top of the list of gainers was GW Pharmaceuticals (NASDAQ:GWPH), a British biopharmaceutical company known for its cannabinoid-based treatments for seizures, which climbed 14.2% to $174.65.

Many Canadian cannabis companies have begun to report their latest financial results following recreational sales.

Due to the lofty valuations, many cannabis company investors are looking for solid revenue growth.

The four Canadian marijuana stocks we have weeded out have average revenue growth of 362% quarter over quarter, with share price appreciation of ~6% over the past month.