The Canadian cannabis sector recently came off its highs and investors are closely monitoring the recent pullback. Prior to this weakness, Canadian cannabis stocks were in rally mode and we remain bullish on these moves.

Over the last week, several significant company announcements have been reported and today, we have highlighted five important company updates that cannabis investors need to be aware of.

MPX: Increases Market Share in the United States

MPX Bioceutical (MPX.CN) (MPXEF) has fallen more than 15% from its February highs and we are monitoring the recent decline. We have been bullish on MPX and continue to see upside to current levels as the company continues to execute flawlessly on growth initiatives.

Earlier this week, MPX’s subsidiary, CGX Life Sciences, expanded its reach in Arizona after entering a definitive limited liability membership interest and asset purchase agreement to acquire 100% of ABACA, LLC, Ambary, LLC, Tarmac Manufacturing, LLC, and Tower Management Holdings, LLC.

ABACA is a fully-integrated medical marijuana business licensed in Arizona that operates a dispensary under the name The Holistic Center in Phoenix, Arizona as well as certain real estate interests located in Phoenix. Today, MPX will hold an investor call at 10am EST to discuss this acquisition and MPX’s third quarter results.

In return for the acquisition, MPX is paying $15,000,000 in cash and stock ($12 million cash). The company will issue $3 million worth of stock (5,704,479 common shares) and 4,700,000 common share purchase warrants (at $0.67 for five years). In addition, CGX has a contingent liability of up to $6,000,000 payable to the sellers solely out of the proceeds of the revenue generated from the contract between Tarmac and Timeless Select, LLC.

MPX is laser focused on several emerging legal marijuana markets in the United States and we are bullish on this focus. Although the shares have come off its highs, they are still up a considerable amount in the last six-months (up 128%). We are monitoring the recent decline and believe it has created a great opportunity for new investors. This is a stock to watch!

Maricann: Takes Investors for a Ride

Maricann Group Inc. (MARI.CN) (MRRCF) has taken investors on a roller-coaster ride in the last week and has recaptured all of its losses from last week.

This volatility comes after the Canadian marijuana producer received a notice of termination from Eight Capital, Canaccord Genuity Corp., GMP Securities L.P., Industrial Alliance Securities Inc. and Clarus Securities Inc., regarding the previously announced $70 million private placement.

The weakness came after the Ontario Securities Commission (OSC) said it is conducting a review of the timing and reporting of certain trades in securities of the company beneficially owned, directly or indirectly, or over which control or direction is exercised by Messrs. The OSC also said that Maricann CEO Ben Ward is the subject of an investigation into his activities while he was CEO of Canadian Cannabis Corp., a company wholly unrelated to the company.

While these reports are concerning, we continued to hold Maricann and are very glad that we did. When these reports surfaced, Maricann dropped approx. 20% and we are monitoring how this story develops.

Hiku Brands: Continues to Execute on Growth Initiatives

Hiku Brands Company Ltd. (HIKU.CN) (DJACF) rallied off its morning lows and this comes after the company issued an update on recent corporate development initiatives. We are favorable on this update and remain bullish on Hiku due to the funded growth initiatives, the strategic relationship with Aphria, and the continued execution.

Hiku Brands was formed after DOJA Cannabis and Tokyo Smoke completed a merger and we are favorable on the combined company. Yesterday, Hiku announced that its subsidiary, DOJA Cannabis (a licensed cannabis producer under the ACMPR), submitted its application to produce medical cannabis oils at its second site facility.

Hiku also announced that it signed a strategic partnership agreement with Vitalis Extraction Technology, whereby Vitalis will advise on the build-out of the extraction lab, partner on certain research and development initiatives, and supply the facility with Vitalis’ Q-90 supercritical CO2 extraction system – which is capable of processing up to 80 kg of cannabis flower per day.

We are bullish on these announcements and are favorable on the focus on the cannabis oil opportunity. We continue to believe that the trend towards smokeless products will become more pronounced and are favorable on this growth initiative. Hiku offers cannabis investors a differentiated opportunity that is levered to Canada’s recreational market and we are bullish.

Organigram: Focused on International Markets

Organigram Holdings Inc. (OGI.V) (OGRMF) is laser focused on expanding into new international markets and capitalizing on these new emerging opportunities. From Germany to Australia, Colombia to Israel, the legal cannabis market continues to expand as countries continue to hop on the legal cannabis bandwagon and we are very favorable on this trend.

Yesterday, Organigram appointed Guillermo Delmonte as the President of its new international division. Delmonte joins the Organigram team after serving as CEO of ICC Labs Inc. (ICC:APH) (ICCLF), a leading international hemp and cannabis producer. In this role, he successfully oversaw the ICC’s initial public offering (IPO) as the first South American cannabis company to go public with a first day valuation of more than $120 million CAD.

As President of this new venture, Delmonte will lead the planning and execution of the international expansion strategy and work out of multiple locations on behalf of the company. We are bullish on this addition due to the proven track record while CEO of ICC Labs and will keep an eye on how the shares continue to move.

Earlier this week, Organigram received an upgrade from Canaccord Genuity, which raised its price target to $5.50 from $5.25. We remain favorable on Organigram due to the strategic supply agreements with provinces for recreational cannabis, the significantly stronger balance sheet, the improving fundamentals, and the valuation.

Invictus: Announces a Major Milestone

Earlier this week, Invictus MD Strategies (IMH.V) (IVITF) announced a major milestone after closing the acquisition of land and a building for $5.2 million as part of its Phase 2 expansion. The address of the property has been consolidated with AB Labs existing address to allow the existing cultivation and sales license to extend to the property.

The Phase 2 construction adds 40,000 square feet to AB Labs existing 15,600 square feet of cultivation space and is on track for a mid-2018 completion. At the same time, construction planning moves ahead at AB Ventures, located on a 100-acre property near Hamilton. The building team at AB Ventures is now completing all conditions required by the municipality, including a hydrological survey. Immediately following the completion of all of the required documentation, AB Ventures will submit building permit requests.

Once AB Ventures receives its ACMPR license, the entire property will have the potential for cannabis cultivation. Invictus has committed $5.5 million in funding to build out the first 21,000 square foot building on property.

The milestone allows AB Labs to continue moving ahead with its aggressive cannabis production capacity, as Canada marches towards full legalization during 2018. We are favorable on this development and remain bullish on Invictus. We continue to view the company as an acquisition candidate due to the attractive valuation and funded growth initiatives. This is cannabis stock investors need to watch.