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

Demand for products that contain cannabidiol (CBD) continues to increase and this is a trend that is expected to continue for years to come.

Although the CBD market is a multi-billion-dollar opportunity, we believe that this market is flying under the radar. When compared to companies focused on the production of cannabis that contains THC, companies focused on CBD tend to trade at a much lower valuation and we think this creates a unique opportunity for investors.

During the last year, we have been focused on identifying leading players in the CBD market and have highlighted three stocks to watch:

Phivida: A Burgeoning Opportunity

Last month, we provided an update on Phivida Holdings (VIDA.CN) (PHVAF), which is focused on capitalizing on the global cannabis industry. The company is an emerging leader in the burgeoning medical CBD and hemp oil extract market and offers a premium line of CBD products which are marketed as functional foods and nutraceutical supplements.

Phivida has been trending higher after signing of a definitive agreement for its joint venture with WeedMD Inc. (WMD.V) (WDDMF). The Cannabis Beverages Inc. joint venture was first announced in the spring of 2018 and is focused on manufacturing, marketing and distributing cannabinoid-infused beverages for the medical and future adult-use cannabis markets.

We are favorable on this relationship and think this could prove to be a major value driver for the company. The joint venture will operate one of the first cannabis-infused beverage production facilities in Canada and we are monitoring how the team is able to execute on this.

WeedMD will be the exclusive cannabis supplier and distributor for CanBev cannabis-infused beverages and will designate production space at its 610,000 sq. ft. facility that will provide CanBev with extensive production infrastructure as well as adequate space to expand for future growth. Phivida will be sublicensing its current and future trademarks, intellectual property, branding and packaging to CanBev. Phivida has also agreed to lead new product innovation, research and development, formulation, packaging and branding for CanBev.