The Canadian cannabis sector has been under pressure recently and the market is closely monitoring this pullback.

While the weakness has been concerning, it is not surprising. Horizons Medical Marijuana Life Sciences ETF (HMMJ.TO) has rallied more than 155% since September 1st, and the ETF has fallen more than 7% in the last week.

The recent rally has been incredible with most licensed marijuana producers trading at very high valuations. While we remain bullish on the long-term outlook due to international market opportunities and the trend toward smokeless cannabis products, it is important to acknowledge the recent rally and maintain realistic expectations for share price appreciation or depreciation.

The time to be selective and focus on fairly valued and differentiated cannabis investment opportunities is now. Today, we want to focus on 10 stocks that due to recent developments cannabis investors need to watch.

MPX: A Long-Term Cannabis Investment Opportunity

When it comes to Canadian cannabis companies levered to the United States marijuana market, MPX Bioceuticals (MPX.CN) (MPXEF) is a leader. Since inception, MPX has been laser focused on making strategic investments and acquisitions of companies levered to states with a burgeoning legal marijuana market.

While MPX is well known for its position within Nevada’s recreational and medical marijuana markets, the company is also levered to markets in Maryland, Massachusetts, New Mexico, and Arizona.

MPX has recorded strong revenues and even more impressive growth. We expect the company to report better-than-expected revenue growth for quarters to come and are bullish on the long-term opportunity as well as the valuation. When compared to Canadian licensed marijuana producers, MPX is very cheap and we are favorable at current levels.

Harvest One: Catalysts on the Horizon

Earlier this month, we provided an update on Harvest One (HVST.V) (HRVOF) and since then the shares have fallen more than 10%. The pullback has moved the shares back on our radar and investors should keep an eye on this one.

Harvest One’s subsidiary, United Greeneries, will start selling medical marijuana to the retail market in February and has more than 325 kg of dried cannabis currently in stock for immediate sale. United Greeneries will launch a new online retail platform for medical clients under the ACMPR.

Last month, Harvest One’s Swiss subsidiary, Satipharm AG, received an initial import license to Canada for its unique Gelpell Microgel capsules. The capsules are currently available for sale over the counter as a dietary supplement throughout pharmacies in the European Union and by special prescription in Australia.

Upon successful importation into Canada and approval under domestic quality control procedures, Satipharm’s Gelpell capsules will be added to United Greeneries’ ACMPR retail distribution. The company expects this product to be available during the second quarter of 2018.

We are favorable on Harvest One and believe that the company possesses several catalysts for growth. The recent pullback has improved the valuation and investors should keep an eye on this one.

Phivida: A Global Cannabis Investment Opportunity

Over the last week, Phivida Holdings Inc. (CSE: VIDA) (OTC: PHVAF) has been under pressure and during this time the shares are down more than 15%. The company is an emerging leader in the burgeoning medical CBD and hemp oil extract market. Phivida offers a premium line of CBD products which are marketed as functional foods and nutraceutical supplements.

Over the last month, Phivida has significantly increased its reach in Oregon and California via distribution agreements. The company also signed a distribution agreement in Japan which is part of its global expansion strategy.

Phivida provides investors with a differentiated opportunity and we are favorable on the company’s ability to capitalize on a multi-billion-dollar market. Over the last year, Phivida has significantly increased its market share and we anticipate continued success. As the legal cannabis market continues to expand, companies like Phivida will be well-positioned to benefit from such growth.

FinCanna: A California Cannabis Opportunity

Over the last few months, we have highlighted FinCanna Capital Corp. (CSE: CALI) as an attractive company levered to the California licensed medical cannabis market. The company is focused on executing its royalty model business plan with a focus on California.

FinCanna’s flagship investment is in Cultivation Technologies Inc. (CTI) which plans to construct an indoor medical cannabis facility to be developed on a six-acre site in Coachella, California. The Coachella Campus is designed to be a 111,500 sq. ft. facility that will include cultivation, extraction, manufacturing, testing and distribution.

Earlier this month, FinCanna announced a significant development in the extraction business of its flagship investment in California. CTI is currently operating its interim medical cannabis extraction facility and plans to directly operate its permanent facility to be constructed at its Coachella facility. In conjunction with this restructuring, FinCanna and CTI have amended their funding agreement, which will support FinCanna in capitalizing on economic opportunities made possible due to the new regulations which took effect on January 1st.

The new operating arrangement provides many benefits to FinCanna. One of the benefits relates to the amount of processing at the interim extraction facility. The economics of the new arrangement result in potential revenues to CTI that are significantly higher than those expected prior to the restructuring.

This is an important development, as the restructured arrangement allows CTI to capitalize upon the immediate opportunity in California through extraction, manufacturing, and distribution before construction of the Coachella Project. Revenues from these areas are expected to be the largest segment of CTI’s Coachella Campus, and the increase in expected royalties to FinCanna could be considerable.

These developments are significant and we are monitoring the recent pullback. These changes will benefit FinCanna and should result in the company reporting much stronger top and bottom-line numbers. Investors need to keep an eye on this one!

INDIVA: An Emerging Growth Opportunity

Over the last two weeks, Indiva (NDVA.V) (RMKXD) has been under pressure and during this time the shares have fallen more than 10%. Investors should monitoring this correction as Indiva is well positioned for strong growth in 2018.

INDIVA is a licensed Canadian medical marijuana producer and was granted a cultivation license from Health Canada in July 2017. Shortly after receiving this license the marijuana producer commenced cultivation activities and expects to complete the first harvest in early 2018.

INDIVA is focused on increasing production capacity and is in the middle of a major expansion. The marijuana producer can produce approx. 300 kilograms per year. When the expansion is complete, INDIVA will be able to producer approx. 2,500 to 3,000 kilograms per year. This is a conservative number that does not include the production of oil from its extraction facility, which can result in the company producing more cannabis than expected.

We are favorable on this initiative, especially since the buildout is fully funded. When the expanded facility is producing at full capacity, INDIVA will be able to capitalize on the growing demand for legal marijuana. Investors should keep an eye on the shares as they appear to have found a bottom.