Initiation on the Organic Cannabis Market: TGOD, ROMJ, NRTH

Executive Summary

  • The global market for organic products is currently worth $160 billion and is forecast to grow to $323 billion by 2024, a 15% annual growth rate. Organic sales have been strong for decades, growing at 12% a year since 2000.
  • In the near term we estimate the Canadian cannabis market is worth $5 billion and organic demand will ultimately make up 20% of the market creating a $1 billion revenue opportunity. This would equal the medium-term demand potential of $8.5 billion for organic cannabis.
  • By 2020 there will only be four certified organic producers operating globally and their supply will struggle to keep up with rapidly growing demand.
The Organic Opportunity
We estimate the three publicly traded organic cannabis stocks will offer 310% upside on average with a range of 267% for 48 North and up to 377% for The Green Organic Dutchman. All three stocks trade at deep discounts to the cannabis group average, even though organic supply and demand trends are much more favourable.

 

The Green Organic Dutchman is a consulting client of Capital 10X.

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TGOD was a market awareness client of Capital 10X.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Evan Veryard
Evan Veryard has a Bachelor's of Chemical Engineering from McGill University and a MaSc. of Chemical Engineering from RMC. He has over 6 years of research experience focusing on industrial materials. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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