Friday, May 31st, marked a huge day for the marijuana industry and for the near-term future of marijuana stocks. The US Food and Drug Administration held its first hearing on CBD. The hearing could lead to a decision that allows US companies to add CBD to food, drinks, and supplements under the oversight of the FDA.
Because it is only the first meeting regarding CBD, the most likely outcome is general guidelines for future hearings. But, even if a decision is not made, the slightest amount of good new that moves towards pro-CBD could push marijuana penny stocks.
Why Marijuana Penny Stocks?
The marijuana industry becomes more and more lucrative for several reasons. First, there is a versatile range of products from THC to CBD. They can be applied in several facets of life like food or beauty products. The market size for the marijuana industry is very lucrative and companies, both inside and out of marijuana, see this.
Second, to marijuana booming, the combination with penny stock volatility could prove fruitful for investors. If a cannabis company announces a new product or offering, they could see their share prices fly. If investors can catch those moves early, they can cash in.
Marijuana Penny Stocks To Watch
Kona Gold Solutions Inc. (KGKG)
Kona Gold Solutions Inc. (OTC: KGKG) is a hemp lifestyle company that combines apparel and consumer goods with everything hemp. The company recently signed an agreement with Savannah Distributing Company Inc. to grow its energy drink products. In addition, Kona launched new flavors for their hemp energy drinks such as bubble gum and candy apple.
“These new flavors taste absolutely amazing and will complement our other great tasting hemp energy drinks that are already distributed in over 30 states around the country. Our team continues to build a world-class brand and I am extremely proud of what they have accomplished,” explained Robert Clark, CEO of Kona Gold Solutions, Inc.
Namaste Technologies (OTC: NXTTF) (TSXV: N)
Namaste Technologies (OTC: NXTTF) (TSXV: N) is an e-commerce company specializing in the selling of cannabis products such as vaporizers. In order to innovate with their competition, they have recently added 3 new members to their Board of Directors including Andrew Wilczynski. He brings 38 years of experience from startups to massive companies across a variety of industries.
“These three individuals each bring a wealth of history and operational excellence with proven results. Andy provides keen financial strength and brings vast experience with large scale turnaround situations. Andrew’s experience is a great asset in our process to improve efficiencies as we build the organization for growth.”Meni Morim, Interim CEO of Namaste
Planet 13 Holdings Inc. (OTC: PLNHF) (CSE: PLTH)
Planet 13 Holdings Inc. (OTC: PLNHF) (CSE: PLTH) is a cannabis company that vertically integrated from the growing of marijuana to its selling. The company boasts the world’s largest cannabis store as well as Leafly’s Nevada dispensary of the year in 2018. Planet 13 announced that they were promoted in the OTC Markets to OTCQX, their best market. In addition, they recently launched their new Planet M CBD products.
To back up their strong company growth was their Q1 financials. Planet 13 reported an increase of 286% in their revenues year over year. Also, they accounted for over 8% of Nevada’s dispensary revenue in January and February.
India Globalization Capital Inc. (IGC)
India Globalization Capital Inc. (IGC) is a cannabis healthcare company looking to create and sell marijuana-based therapies for Alzheimer’s. The main way they attack and treat Alzheimer’s is through their drug Hyalolex. This healthcare penny stock is currently trading at $1.02 on little news at the moment.
Little news is significant for one reason. Once news does come out the potential for a nice trade increases. Since penny stocks feed off of company news it could be the catalyst IGC has been looking for. For instance, in February of 2019, the company successfully appealed their delisting procedures and their stock shot up over 600%!
Medipharm Labs Corp (OTC: MEDIF) (TSXV: LABS)
Medipharm Labs Corp (OTC: MEDIF) (TSXV: LABS) was the first licensed producer cannabis oil producer in Canadian. The company released a statement about its agreement with the Bank of Nova Scotia. The deal will involve the purchase of 10.815 million shares valued at $5.55 per. In addition, they can purchase an additional 1.6 million shares following the closing of the initial offering.
“Plans to use the net proceeds from the Offering to fund the Company’s ongoing capital expenditures at its Canadian and Australian facilities, for domestic and international expansions, research and development and general corporate purposes.”