TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

The Canadian cannabis sector ended on a high note last week and many investors are monitoring how the sector closes out the year.

2017 started the year off strong and then the sector pulled back in the second and third quarter. During the fourth quarter, Canadian cannabis stocks have surged higher and we expect 2018 to be a banner year for the sector.

From international markets to acquisitions, licensed medical marijuana producers are laser focused on growth. Many of these companies have focused on increasing production capacity before the recreational market opens in 2018 and we expect this trend to become even more pronounced over the coming months.

Today, we have highlighted 3 important trends within the Canadian cannabis sector that investors need to be aware of. 

Leading Licensed Producers Secure Supply Agreements

Earlier this month, Aphira (APH.TO) (APHQF) surged higher after the licensed medical marijuana producer secured a supply agreement with Shoppers Drug Mart. This development was a catalyst for the entire sector and we have seen companies like CanniMed Therapeutics (CMED.TO) (CMMDF) and Canopy Growth Corp. (WEED.TO) (TWMJF) enter similar agreements.  

Under the agreement, Aphria will supply Shoppers Drug Mart with Aphria-branded medical cannabis products and we are favorable on this relationship. The market responded favorably to this announcement and broker-dealers increased their price target on Aphria after it was reported.

We are favorable on this trend and expect to see Canadian licensed marijuana producers secure more agreements like this in the coming months. This is a positive trend for cannabis stocks and investors should monitor this opportunity going forward.

International Markets Represent a Significant Opportunity

Over the last year, we have seen Canadian licensed medical marijuana producers expand their reach into new markets like Australia, Germany, Chile, Colombia, Israel, Denmark, South Africa, and many more.