IPO ALERT: Another 246% Gain in 7 Months?

Investing in a cannabis stock Initial Public Offering (IPO) has been a reliable way to stack up big gains in a short amount of time.

Take Medreleaf (LEAF) for example. The Canadian cannabis company began trading on the Toronto Stock Exchange in early June to little fanfare.

However, although shares languished for the first few months, buying early in the game turned out to be very profitable.

Shares of LEAF rallied 246% in the next seven months as the masses realized a hot new cannabis company was open to trade.

Take a look at the big rally below. Early investors quickly made a killing.

Today, I see that same cycle repeating itself.

  • A new cannabis IPO is ready to hit the Toronto Venture Stock Exchange.
  • This company is investing tens of millions into the most promising cannabis companies and projects.
  • Making moves to be a player in high-growth Germany.
  • Just announced a string of promising new deals.
  • Landed $20 million in equity funding in December.

As you can see – this is a cannabis IPO we want to be following.

Nuuvera (TSXV: NUU) is a young cannabis company based out of Canada that is set to start trading on the Toronto Venture Stock Exchange in the next few days.

Nuuvera operates like an investment fund – making strategic investments in promising cannabis companies or projects across the global cannabis industry.

Although Nuuvera is headquartered in Canada – I like that the company is making a big push into high-growth international market.

That has been on display the last few months after Nuuvera announced a string of new investments in some of the most promising cannabis markets in the world.

A String of Deals Showcases Nuuvera’s International Ambition

For example, on January 9 Nuuvera announced it had reached the ‘short list’ by the German Federal Institute for Drugs and Medical Devices (BfArM) for a contract to grow, process, store and deliver up to 6000 kg of cannabis in Germany. More than 100 companies applied and Nuuvera is one of 10 remaining contenders.

Lorne Abony, CEO of Nuuvera Inc. said: “We are tremendously excited about BfArM’s decision, and for the headway Nuuvera has made in Germany, which is one of the largest markets in the world to legalize cannabis for medical usage.”

Also on January 9, Nuuvera announced it had broken ground on the construction of a storage and packaging facility for medical cannabis products.

From the press release: “Nuuvera recently purchased a 11,300 square – foot property in Bad Bramstedt, in northern Germany, to build a premium vault storage system equipped with state-of-the-art security and related technology. The facility is expected to meet the most stringent requirements for the storage of cont rolled substances in Germany and the EU. Lorne Abony, the CEO of Nuuvera, said that the new facility will ensure the company can continue to develop into a major supplier of medical cannabis products to German consumers.”

Nuuvera also recently announced it had entered into a letter of intent (LOI) with German pharmaceutical company CC Pharma GmbH to export approximately 1,200 kilograms of medical cannabis products from Canada to Germany.

Under the terms of the LOI, CC Pharma, a leading distributor of pharmaceutical products to over 13,000 pharmacies in Germany, has agreed to import approximately 1,200 kilograms of medical cannabis from Nuuvera in 2018. The completion of the transaction is subject to and conditional up on the execution of the definitive agreement, the approval from the TSX Venture Exchange, and the approval of the relevant Canadian and German governmental authorities.

As you can see Nuuvera is scoring some big wins in Germany right now. I’ve talked about it before but Germany looks like one of the most promising cannabis markets in the world. It has the potential to be huge with legalization accelerating. Companies that establish an early presence could be sitting pretty if legalization gains momentum in the next few years.

Nuuvera is still an early stage cannabis company – so there isn’t a lot of solid revenue happening yet.

But with all these new investments coming online in 2018 I expect revenue to get a pop.

NUU Will Invest Tens of Millions into new Cannabis Projects this Year

Looking forward, Nuuvera is just getting started. The company has tens of millions of dollars ready to invest in the cannabis industry.

In late December announced it had closed $20 million in private funding.

In August Nuuvera announced it had scored a $2 million investment from Aphria, one of Canada’s largest and most promising cannabis companies.

In March wrapped up $50 million in seed funding.

And now – with an IPO about to go off – Nuuvera will have millions more in cash to add to the coffers.

When Will Shares Begin Trading?

Shares are set to start trading on the Toronto Venture Stock Exchange in the next few days under the ticker symbol: NUU.

NUU is a high-risk cannabis investment. I am expecting volatility in the first few days. After that, I am expecting shares to start grinding higher with the broader cannabis sector.

Michael Vodicka owns shares of Medreleaf.

About the Author

Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.