TransCanna Ends The Week On Another High Note

TransCanna (CSE: $TCAN) has soared over 500 percent in first two months of 2019. 

For those savvy cannabis investors in search of a great marijuana stock, it pays to remember that sometimes taking the road less traveled is the smarter choice. 

While Canada's major marijuana producers get the most attention in the hectic 24-hour news cycle, smaller marijuana businesses that focus on the U.S. sector could be even smarter picks. And there's one marijuana stock that many investors have overlooked  that has quietly delivered elevated returns. 

TransCanna is technically a Canadian company -- since it's based in Vancouver, BC. But the company's primary operations are in California, where the company is working to become the leading distributor of cannabis products. That simple fact is critical, because California is poised to cultivate the largest marijuana market in the world.

Although California's legal recreational marijuana market opened for business in January 2018, it got off to an ugly start. Stifling sales at first, the state's tax rates were unfortunately set too high when recreational sales was initially rolled out. Overly restrictive regulations also hindered progress. Meanwhile, state regulators permitted fewer recreational dispensaries than they should have to adequately support the state's adult-use cannabis market.

In short, California’s elected officials understand they've got a big problem. In hopes of addressing the issues, Gov. Gavin Newsom wants to beef up enforcement to go after the state's black market marijuana, according to the LA Times. Meanwhile, California lawmakers are considering reducing cannabis excise taxes and suspending the cultivation tax for three years. 

As such, there's nowhere to go but up after California's dismal launch of their recreational marijuana market. And I truly think the state will end up making some sober changes to the rules and regulations in order to avoid losing out on future tax revenue. As it does, there will be more legal cannabis growers and more dispensaries licensed. And that will enable TransCanna's value to rapidly increase.

Three Reasons TCAN is a Buy In 2019

1. TransCanna Rolls Out Track-and-Trace Software

420 Global is a state‐of‐the‐art proprietary software that's designed to create a Business Intelligence backend which integrates accounting, human resources, procurement, manufacturing and project management solutions.  The software will integrate with the Company’s Warehouse Management System (WMS) and with METRC California’s Cannabis Track‐and‐Trace (CCTT) system making the company fully compliant.

2. TransCanna Accepts Option To Acquire 196,000 Sq. Ft. Enclosed Cannabis Facility

The company announced on February 4, 2019 it had accepted the assignment of a real estate option agreement (“Option Agreement”) from its CEO, Jim Pakulis, to acquire a land, building and asset package (the “Property”) which includes an existing 196,000 square foot facility on 6.5 acres of land, as well as cannabis packaging and processing equipment. 

3. TransCanna granted temporary CA Distribution License.

The company announced on January 18, 2019 that TCM Distribution, Inc. (“TCMD”), a non-profit entity managed by TransCanna had received its temporary distributor license from the state of California. And as of December 31, 2018, TCMD had already submitted their permanent distribution license application to the state. 

TransCanna specializes in assisting their clients who are cannabis farmers and manufacturers get recognized by end consumers who in turn purchase their products. The company offers their services throughout every aspect of the marijuana ecosystem; from branding and design, to transportation and distribution, to marketing and sales.