While I do believe that the Canadian cannabis sector continues to trade at valuations that do not make sense and more downside is on the horizon, there are some highly speculative and risky small cap or micro cap companies that provide compelling stories that may make a risk-loving investor want to take a leap and buy a small stake. This is one of those companies.
Indiva (TSX:NDVA) is a very small Canadian cannabis player, focusing on cannabis infused chocolates and other assorted edibles products. One of the recent deals the company made was with a prominent condiment company to make salts and sugars infused with cannabis, expanding the range of products normally considered as "edibles" by users of this drug.
Indiva has entered the "cannabis 2.0" fray, hoping to benefit from increased consumer awareness around these products and a high-profile investment from right wing pundit Brett Wilson.
Indiva is a good example of a young company looking to build credibility in the cannabis space through various partnerships and deals within the Canadian venture capital space.
Again, this is a highly speculative micro cap stock, and the risks with owning a company like this should not be understated. That said, the potential upside for a company like this in a market which sees sentiment turn around could be parabolic.
If you’re banking on a repeat of 2017-2018, I’d focus on smaller players like Indiva with growth stories like Cannabis 2.0, that could either grow organically or exist as a takeover possibility for one of the larger Canadian players in the cannabis sector.
Invest wisely, my friends.
