As Per Paybotic, the cannabis industry is notoriously bumpy, and a sudden legal update can wipe out trends. Fortunately, companies with deep pockets can take advantage of opportunities in this space to build a dominating position. Here are four emerging cannabis tech companies to watch this year. They may not be cannabis companies, but they have big ambitions. And they are poised to take the cannabis industry by storm. But which ones will be the best bets?
GW Pharmaceuticals (NASDAQ: GWPH) is a good investment for marijuana investors. It has already landed two FDA-approved indications for Epidiolex, including treating two rare forms of childhood epilepsy. It plans to expand its label to include tuberous sclerosis complex. Meanwhile, it expects recurring profitability this year. The stock jumped 43% in a year, despite the lackluster market.
The cannabis industry is not plagued with inflationary prices, but it needs to stay competitive and grow its market share. Cannabis AgTech, for example, focuses on improving crop yields and profits by introducing lighting solutions. The latter will help lower operational costs and maintain brand stability. The industry is poised to play a greater role in the market, and better practices can help it thrive. In short, cannabis is ready for its IPO.
Hardware is another promising area for cannabis technology. In addition to metered dosing devices, new cannabis-related products can also help patients understand how potent their homegrown marijuana is. In addition to metered-dose devices, other new hardware is available in the market. Israeli-based Kassi Labs Inc. is developing a device that uses disposable Wisp(tm) Pods to deliver cannabis-infused beverages. The company raised $5 million in 2017 and plans to launch its product in the North American market in 2019.
Paybotic described that, leafLink is a service connecting cannabis brands with retail operators. The company's online portal connects more than 6,000 retail businesses with 2,300 brands. Their streamlined interface makes ordering cannabis easier for customers, and users can track orders on their phones. In addition to LeafLink, Green Thumb is a vertically integrated cannabis company. It carries an impressive line of products and controls the entire supply chain. And a new generation of cannabis companies is launching in the market.
Cannabis stocks have underperformed in the last five years. However, the marijuana industry is still extremely healthy in the U.S., even with the continued delay in federal legalization. It is expected to grow even faster, thanks to forward-thinking states. In fact, New Jersey has just legalized recreational marijuana. Its economic impact is expected to be even greater. Overall, the long-term prognosis is excellent.
BNY Mellon is a custodial bank in the U.S., with Dan Ahrens, a portfolio manager. The Pure US Cannabis Index's average market cap reached $133.1 billion in March 2022, and its implied volatility ranked 64%. Trulieve is another top emerging cannabis tech, and its merger with Harvest Health & Recreation will create a larger player than its rival.
Eaze, the leading online retailer in the marijuana market, is investing in technology that creates value-added cannabinoids. Leafly, which offers weed-centric reporting and strain reviews, is another example of emerging cannabis tech. Likewise, Gateway invests in promising cannabis startups, and funds as much as $50K in each. As with any emerging technology, the cannabis market has an incredibly promising future for budding entrepreneurs and tech companies.
In Paybotic’s opinion, green Thumb Industries enters 2020 with a market cap of $5 billion and holds enough licenses to open 96 retail stores in 12 states. Much of Green Thumb's success is due to its market selectivity. Two-thirds of the company's revenue comes from derivatives, which yield a higher margin than dried cannabis flower, enabling it to reach recurring profitability ahead of many competitors. If investors keep these companies in mind, they may be able to take advantage of this industry's growing market.
As the legalization of cannabis continues to progress, the cannabis industry is poised for explosive growth. While the industry continues to experience rapid growth, the outlook for investing is mixed. With a number of new regulations and changes in federal legislation, marijuana stocks and other cannabis tech companies will face headwinds throughout the year.
While there are plenty of opportunities to be had in the cannabis industry, the risks are still quite high. To make the best investment decisions, keep reading about these emerging trends in the cannabis industry. Flowhub is a point-of-sale software solution that enables cannabis vendors to manage inventory and track compliance.
Additionally, the team is developing a full suite of in-store tools and apps for cannabis retailers. Its founder has received the LeafLink Award for his contributions to the cannabis industry. The company is poised to earn more than $25 million by the end of 2020. So, keep an eye on these cannabis-tech companies this year.
