The #1 Stock of the Cannabis Fourth Wave

Is legalization coming to the cannabis industry?

For many investors, that’s the big question… and what’s holding them back from investing.

I say the answer is undoubtedly YES!

For many U.S. states and foreign countries, it is only a question of “when,” not “if.”

In fact… legalization is happening here and around the globe.

In the United States, 36 states allow medical use and 16 states allow adult-use (with two more in the works). And 91% of U.S. adults now say cannabis should be legal in some form.

More states are legalizing it every election cycle. More than 1,500 cannabis bills were introduced last year.

And the formation of the United States Cannabis Council will help push the U.S. closer to federal action to legalize.

But to me, the much greater opportunity lies outside the U.S.

The global cannabis market offers a much larger demographic and a faster pace of approval and legalization.

My No. 1 stock of the “fourth wave” of cannabis already has a big head start and is operating in one of the most cannabis-friendly countries in the Middle East.

A Huge Head Start

Israel-based Canndoc has 13 years of experience and a gigantic first-mover advantage in the global legal cannabis industry.

Canndoc has been a trailblazer in providing pharmaceutical-grade cannabis to the medical, wellness and health markets. More than 40,000 patients have been treated with the company’s medical cannabis products.

Canndoc was the first company to import medical-grade cannabis to Israel and is now the most profitable company in Israel’s growing legal cannabis market.

Israel is at the forefront of using cannabis for medical purposes. The country is the world leader in medical cannabis… and Canndoc is Israel’s leading medical cannabis provider.

The market size is expected to more than double, from $214 million in 2020 to a projected $562 million in 2024, as public acceptance increases. And that’s just for medical use!

In November 2020, the Israeli justice minister announced and approved a plan to legalize CBD and recreational cannabis within nine months.

The upside will be enormous. That market is projected to be worth $2 billion by 2027.

Canndoc is now also making inroads into Europe, with its population of 500 million. Canndoc was the first company to export medical cannabis from Israel to Europe.

The export approval was just received in the fourth quarter of 2020. Yet the company is already gearing up to increase European exports to more than 90 tons per year.

I expect to see Canndoc expand its offerings to multiple European countries and claim its share of what could be a $3.8 billion market by 2025.

And then there’s the huge global market. Global cannabis sales were up 48% to $21.3 billion last year. I believe the global cannabis market could reach $1.5 trillion in the next decade.

Getting Ready for the Floodgates to Open

I believe the fourth wave of cannabis is about to get underway.

It’s clear to me that Canndoc sees a massive surge in demand ahead. It’s made some terrific moves getting ready for it.

Here are some of Canndoc’s strategic moves:

• The company is on pace to expand the size of its cultivation and research and development sites by up to 467%.
• It has formed strategic partnerships with some of the biggest names in the industry – including Aphria, Tilray, OrganiGram and Charlotte’s Web.
• It has plans to open branded pharmacies with the popular California-based Lemonnade brand of flavored cannabis products.
• It has locked in a long-term exclusive supply agreement with Aphria.
• It has FULL exclusivity on import, export, and research and development with Tilray for the next seven years. Tilray is a leader in Canadian cannabis production.
• Canndoc has a long-term exclusive strategic supply agreement on import, export, and research and development with OrganiGram. This is one of Canada’s top producers of extract-based products.
• It has exclusive rights to launch branded products and pharmacies with popular cannabis dispensary firm Cookies. This leading brand is currently expanding and has 18 retail locations across the U.S.
• The company has full-spectrum, long-term exclusivity with Charlotte’s Web. This includes access to its existing and future products.

And here’s my favorite part…

Most of these contracts don’t include just supplying bulk material. They specifically mention co-branded products. That means Canndoc won’t be just some anonymous supplier. Its branding will appear on the product labels.

With the numbers we could see globally, brand awareness and the demand for its quality products should rapidly accelerate.

Speaking of quality…

Canndoc is a global leader in good manufacturing practice (GMP) medical cannabis.

If a company has this independent GMP certification, it’s like a gold standard for safety and quality. This seal of approval is not easy to get. It gives Canndoc’s products instant credibility as a trusted source for cannabis businesses looking for dependable cannabis products.

All the Needed Ingredients

Canndoc has two cultivation sites in Israel – one in the north and the other in the southern region of the country.

The northern site currently has 55,000 square feet that are fully operational with the ability to expand to 160,000 square feet. The southern site has 300,000 square feet in operation with the ability to expand to 1.7 million square feet.

So the ability to quickly expand its cultivation operations is available. In addition, thanks to its agreements with Aphria, Tilray and OrganiGram, among others, Canndoc can obtain additional bulk supply material when needed.

Canndoc is beginning to see some astonishing revenue growth…

Its revenue increased sevenfold from first quarter of 2020 to the fourth quarter of 2020. In the first quarter of this year, revenue was up 666% year over year. Management expects year-over-year growth of 412% in the second quarter, 212% in the third and 170% in the fourth.

Based on those projections, I’m expecting 2021 revenue to hit $74 million and gross profits to hit $25 million. Those numbers should double in 2022 as legalization happens in Israel and sales to Europe expand.

Plus, the chairman of the company is one of the most popular figures in the country: Ehud Barak, the former prime minister. Barak was also the General Commander of the Israel Defense Forces prior to becoming prime minister. (Do you think he might have some friends in high places?)

And Barak has assembled a strong management team to guide the company…

• The CEO has more than 20 years of business and merger and acquisition experience.
• The chief financial officer was previously the vice president of finance for Israel’s largest communications company.
• The chief operating officer has 20-plus years of operational experience working at Israel’s largest aggrotech company.
• The chief medical officer comes to Canndoc from an 18-year career at Teva Pharmaceutical Industries.

Ride the Wave

In January, InterCure Ltd. which conducts business under the name Canndoc, announced an agreement with Subversive Acquisition (OTC: SBVRF) – a special purpose acquisition company (SPAC) – to combine the two companies.

The transaction was just finalized a few days ago, and the combined companies will now trade on the Toronto Stock Exchange as InterCure (TSX: INCR.U).

Canndoc is a wholly owned – and the only – subsidiary of InterCure. Buying InterCure is the same as buying Canndoc.

The newly formed company is being led by Ehud Barak and his management team.

This presents you with a great opportunity to get in on the ground floor of a company with tremendous potential that’s run by experienced and well-connected people.

Canndoc is in the dominant position for substantial market expansion as adult-use cannabis receives legal approval in Israel. It is also in the pole position for expansion into Europe, for both medical and recreational cannabis.

The fourth wave of cannabis – the industry’s move into the mainstream – is quickly approaching.

New favorable legislation, growing public acceptance, expanded product offerings, and increasing medical and therapeutic applications will vastly enlarge cannabis’s commercial potential.

There’s a $16 trillion impact at stake… Canndoc is my favorite way to play it.

Action to Take: Buy InterCure (TSX: INCR.U) up to $20. Use a 30% trailing stop.