The cannabis industry has fallen out of favor with many investors, in part because it was saturated with stories that never delivered the promised revenue and returns to investors. When an entire sector gets beaten down, however, there can be deals available on the cheap. There is still money to be made for those companies able to deliver on potential, and the rise from the bottom can produce significant returns.
The United States Drug Enforcement Administration (DEA) has hearings scheduled for December 2 to consider rescheduling cannabis from a Schedule I to a Schedule III drug, a major step toward destigmatizing the industry. The rescheduling is being pushed by President Biden, and both major candidates have expressed support for legal marijuana. Moves like these have the potential to reignite interest in the ~$34 billion dollar domestic market.
The potential for legalization and renewed interest in the industry is exciting, but we are looking at a company that can be successful as the industry stands right now. LEEF Brands Inc. (CSE: LEEF) (OTC: LEEEF) has all the ingredients necessary to succeed even in today’s fragmented regulatory environment.
The video discusses LEEF’s vertically integrated concept, including world class genetics and cultivation methods paired with leading edge extraction methods (ethanol, solventless, and hydrocarbon). The company was built on its extraction capabilities, and most of its ~$30 million in revenue (from FY 2023) comes from that business. About $5 million currently comes from its own brand of products and its own dispensary.
LEEF is in the process of launching its own cultivation operations with the addition of the Salisbury Ranch facility and its 187 acres of cannabis canopy. The ranch is expected to be fully operational in 2025 and will give LEEF the ability to secure its own supply chain, ensure growth, and perhaps most importantly greatly increase profitability beyond what a pure extraction business can achieve.
The Upshot
Investors looking for large upside potential may consider the cannabis industry, where business is still being done and money is being made even while the investment community has in essence shunned the sector. Watch the video, dig into LEEF Brands, and the picture emerges of a vertically integrated California cannabis powerhouse in the making. There is plenty more to come regarding this opportunity. Stay tuned.
