This Pot Stock Has Already Quadrupled in Price This Year

Village Farms International Inc (TSX:VFF)(NASDAQ:VFF) has been the hottest pot stock on the TSX this year, rising more than 300% thus far.

Although the company mainly sells vegetables and produce-related sales accounted for 96% of its revenues last quarter, the reason investors are so excited about the stock is for its opportunities in the cannabis industry.

By already having a strong, existing operation in place, Village Farms can use that to help grow its position into the cannabis industry. Currently, the company has a joint venture in Pure Sunfarms, which will have an estimated production capacity of 150,000 kg annually. Village Farms has already had a positive contribution to its bottom line from the joint venture and it’s really just the start of things to come.

The company also recently announced it was taking on another joint venture in Colorado for outdoor hemp production, as it positions itself for success in the emerging hemp market in the U.S.

With the passing of the farm bill late last year opening up the U.S. to hemp-derived CBD, it gives Village Farm and other cannabis companies an opportunity to get access to a small section of the market. It’s a good testing ground to see how well the real deal will go, whenever legalization finally takes place.

For the time being, however, Village Farms is adding lots of capacity and investors are excited as the stock has tremendous potential given the opportunities in the industry. With at a market cap of around $900 million, is still a relatively small player when it comes to the cannabis industry but that could change very soon.