Are Small-Cap Cannabis Stocks A Better Deal Than Large-Cap Stocks?

Bigger isn't better when it comes to marijuana stocks!

Now that recreational cannabis is legal in 10 US states and Canada, some investors are wondering just how big the marijuana industry will grow?

But depending on where you get your stock info, the potential growth of the marijuana sector seems to vacillate.

While Arcview Market Research and BDS Analytics has called for global sales to hit $31.3 billion by 2022, the Cowen Group foresees $75 billion in worldwide marijuana sales by 2030.

Whether its $75B by 2030 or $31.3B by 2022, one big question remains: Which marijuana stocks should you invest in?

Although large-cap stocks are a tempting purchase, most small-cap marijuana stocks have a better chance of actually showing profitability.

So, while companies like Canopy Growth (NYSE: CGC), Aurora Cannabis, Tilray, and Cronos Group (NASDAQ: CRON) have smoked their immediate competitors in cultivating a dank return on investment thus far – are these large-cap marijuana stocks really the best option going forward?

Some would argue they’re not.

On February 21, 2019, Sean Williams of The Motley Fool provided 5 thoughtful motivations for buying small-cap pot stocks rather than companies like Canopy Growth, Aurora Cannabis, Tilray, and Cronos Group.

1. Small-caps marijuana companies have a better chance of being profitable
2. There is less baked-in premium for small-cap marijuana companies
3. The buyout potential is significantly better in small-cap cannabis companies
4. The allure of synergistic partnerships and valuation perspective
5. Small-cap cannabis companies have incredible focus

“The fact is, small-cap pot stocks offer more potential than Wall Street's mid- and large-cap darlings,” according to Williams.

And companies like TransCanna should be one of the small-cap marijuana stocks you consider investing in 2019.

TransCanna Holdings Inc., (Borse Frankfurt:TH8 / Canadian Securities Exchange:TCAN) announced on Feb 20, 2019, it has appointed Haywood Securities Inc. ("Haywood") to act as lead agent on behalf of a syndicate of agents to be formed, including Gravitas Securities Inc. The two companies will sell, by way of a private placement, up to 5,000,000 units of the Company at a price of $2.00 per Unit.

Per the announcement. "TransCanna intends to use the net proceeds of the Offering to partially fund the acquisition of the 196,000 sq ft cannabis facility as announced on February 4, 2019, and for working capital and general corporate purposes."

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