Three cannabis stocks are on the verge of a breakout

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These are exciting times for investors looking for the biggest return on their investments

Several factors, such as high expectations and hard regulations, worked as a trap for the cannabis stock market that suffered a dreadful 2019 when over half of the stock’s value was lost. Despite these hurtful facts, the industry is showing some recovery signs and analysts predict that bringing innovation to cannabis businesses will help gain more social support that can lead to legalization. Three cannabis companies in particular are worth looking at for possible investment due to their strategies of entering into beneficial partnerships.

Cronos Group is the first one on the list, and it shows the legitimacy of the business through a partnership that was signed with tobacco giant Altria. The agreement was made in late 2018, and, for a sizeable cash injection, Altria took 45% of Crono’s stake along with some warrants that could be exercised by Altria. Altria brings a big business mentality to Cronos and is helping the company organize better its expenses.

Another company similar to Cronos is Tilray, which also made an agreement with a giant company so it could access funding to run operations as well as an image of legitimacy that will be projected to the investing community. Its strategic partnership with Anheuser Busch Inbev was quite some big news; the goal was to take to the market a new line of cannabis-infused beverages. Cannabis derivatives seem to have a bright future, so this stock might be worth investing in.

Another firm associated with a giant beverage producer is Canopy Growth. It signed an agreement with Constellation Brands, the big producer of the famous beer Corona, among many others, which has put some pressure on Canopy Growth to reduce its overall costs, like closing some facilities. This is one of the leaders in the cannabis industry and is seen with good eyes the efforts to be better financially. The reduction in footprint, however, isn’t keeping the company from keeping its plans alive, and it continues to be a leader in the market.