Top Cannabis Penny Stocks to Consider | Value the Markets

With decriminalization of cannabis for medical and recreational use appearing to spread significantly in North America and beyond, it might be an attractive time to back cannabis penny stocks.

Indeed, the proposed Cannabis Administration and Opportunity Act, which is backed by prominent US senators such as majority leader Chuck Schumer, pushes for nationwide legalization in the US. That’s why some see these stocks as some of the most attractive long-term investments in the life sciences space.

Even so, that doesn’t mean cannabis stocks are a slam dunk. High competition and over-ambitious expansion has dogged the space, with many cannabis stocks seeing their share price fall significantly as excitement surrounding the sector has subsided somewhat.

With that in mind, here are some cannabis penny stocks we think are worth a look:

Cresco Labs

Cresco Labs (OTCMKTS: CRLBF) operates in 10 states through 51 owned Sunnyside brand dispensaries, which are supplied by its 21 production facilities. These production and distribution centres are also where the company runs its wholesale segment, which supplies almost 600 stores in California alone.

The company has a wide range of brands under its umbrella, from the straight up cannabis sold under its flagship Cresco brand to cannabis-infused foodstuffs from the Mindy’s Edibles brand and wellness-oriented products sold under the Remedi brand.

The company specifically targets limited license markets, allowing it to avoid some of the issues with high competition which have been seen in the cannabis market to date.

The company has also agreed to acquire fellow multi-state operator Columbia Care, with this transaction targeted for completion before the start of 2023. The deal will significantly expand the company’s footprint, adding more than 90 retail locations and operations in previously untouched states like New Jersey and Virginia. 

With so much focus on the US and so little on the international market, Cresco is a great cannabis stock for investors who anticipate US decriminalization of the drug in the near future.

With a large and growing footprint already in place, including a successful wholesale operation, the company’s dominant position means it is better placed than many to capitalize on a potential boom in demand for legal weed. As such, this is a cannabis penny stock you might want to learn more about.

Tilray Inc

Cannabis lifestyle and consumer goods specialist Tilray (NASDAQ: TLRY) have built an exceptionally wide-reaching business. The company’s operations touch on medical use, adult-use, wellness and beverage and alcohol markets across Canada, Europe, Australia and the US.

The company’s latest quarterly results, which cover the three-month period ended 31 May 2022, show that the company achieved revenue of $153.3m. This compares with $142.2m for the same period last year. 

However, this growth is not reflected in the company’s operating losses, which have spiralled from $73.7m to $460.7m in…