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Recreational marijuana is coming to Canada and this will be a major catalyst for the companies levered to this opportunity.

There are many factors driving the Canadian cannabis market higher and we are bullish on this burgeoning market. From international growth initiatives to cannabis oils, there are a lot of exciting growth trends that investors need to be aware of.

Today, we have highlighted three recent company developments and investors should be keeping an eye on these three companies.

Hempco Surges After Aurora Increases Ownership Interest

After Aurora Cannabis (ACB:APH) (ACBFF) announced that it increased it its ownership interest in Hempco Food and Fiber Inc. (HEMP:APH) (HMPPF) to 35%, the market responded favorably and Hempco rallied more than 40%.

Prior to this decline, Hempco was trending considerably lower and the shares were looking for a bottom. This rally took place on very strong trading volume and momentum popped higher on this move.

Hempco's position within the hemp based nutrition space makes it a strategic partner and attractive acquisition candidate. Industrial hemp grown under contract to Hempco contains efficient extractable quantities of cannabidiol (CBD). The CBD market is expected to show significant growth, and Aurora considers the proposed transaction with Hempco to be a strategic initiative to enable market share dominance in this attractive segment.

Although this rally was significant, Hempco has fallen more than 25% from its January highs and we are monitoring the shares closely. We are favorable on the relationship between Aurora and Hempco and see significant upside to current levels. Aurora’s CEO issued positive guidance when the company announced that it increased its investment level and we expect this relationship to benefit Hempco shareholders.

Isodiol Acquires Florida-Based Water Company

Isodiol International Inc. (ISOL:CNX) (ISOLF) has come off its recent highs and we are monitoring the global Bioactive CBD innovator which specializes in the development of pharmaceutical and wellness products. We have been monitoring the recent pullback and remain favorable on Isodiol as the company continues to execute on its strategy and expand its reach.

Yesterday, Isodiol’s subsidiary, IsoBev, signed a definitive agreement to acquire Azure Bottling LLC, a premier water bottling facility in Florida. Azure has secured manufacturing and distribution agreements to supply water to Sysco, McArthur Dairy/Dean Foods, and Dollar General Stores throughout the United States.At full capacity, Azure can produce approx. 5.3 million bottles per month and expects this number to increase to approx. 8.58 million bottles after making improvements over the next several months.

IsoBev focuses on Isodiol’s beverage brand portfolio and will capitalize on these enterprise level companies for additional support and distribution of all beverage brands created in-house. We are favorable on this acquisitions and believe it solidifies IsoBev’s position within the CBD innovator. We expect Isodiol to recognize significant synergies from this acquisition and will monitor how the company is able to integrate the businesses.

The acquisition is an important milestone for Isodiol as the facility will create value for the beverage portfolio such as CBD and hemp waters as well as the growth potential of some of the core business initiatives. We continued to view Isodiol as an attractive opportunity and will monitor how the shares continue to trade from here.

Namaste Expands to Colombia

Although Namaste Technologies (N.CN) (NXTTF) continues to execute and advance its fundamental story, the shares have been trending lower after the company was granted a cultivation license from Health Canada.

During the last month, Namaste has been nothing short of an execution story and the shares are up approx. 20% during this time. We have been favorable on the continued execution and continue to keep a close eye on the shares.

Yesterday, Namaste edged lower after the company signed a medical cannabis product acquisition with Clever Leaves, a vertically integrated, licensed producer of medical cannabis in Colombia, with the assistance of Clever Leaves’ financial sponsor, Northern Swan Holdings, Inc.

Clever Leaves recently broken ground on a 15+ hectare Good Agricultural Collection Practices compliant cultivation facility and Good Manufacturing Practices Level-2 extraction facility, leveraging high-grade technology and practices from the international pharmaceutical and cannabis industries. By 2019, development of a second cultivation site will significantly expand cultivation capacity to meet demand from domestic and international patients.

Under the agreement, Namaste’s subsidiary, Cannmart, will submit purchase orders to Clever Leaves for medical cannabis as well as import medical cannabis, subject to approval by Health Canada. We are favorable on this agreement and believe that it adds value to Namaste’s story. We will monitor how the shares move from here and investors should be keeping an eye on this one.