Unless you've been living under a rock, you'll be aware that Joe...

Unless you've been living under a rock, you'll be aware that Joe Biden won 306 Electoral Votes, securing the Presidency of the United States.

Democrats have formulated the intention to push to decriminalise cannabis on a federal level.

Several states voted to legalise cannabis for recreational use during the November 3rd election.
https://edition.cnn.com/2020/11/06/business/cannabis-election-win/index.html

But it seems the market has not yet registered AGH's exposure to the US market, via its Canada-based Peak Processing Solutions entity.

This is understandable: Peak only received its license to operate in September 2020, from Health Canada, and the news that they have US companies lined up, interested in their cannabis derivative product manufacturing services, is very recent. The first I heard of it was on the AGH investor webinar, yesterday, November 19th.

Peak has racked up approximately $4.65 million CAD in orders within the first two months since they received their license, but these orders are only scratching the surface of their operational production capacities, which the company estimates will be in their first year:

• Canned beverages: 37m units
• Nano emulsified powder: 15m units
• Cosmetics & topical creams: 22m units
• Small liquid & cannabis oil products: 18m units
• Vaporizer pens: 12m units

With demand for Cannabis 2.0 products far outstripping manufacturing capacity in Canada alone, and with the news the US is already knocking on Peak's doors for business, 4 new US states added to the list of legal recreational cannabis jurisdictions is going to mean significant tail winds for Peak and AGH in the short and mid term future. Two of those states, Arizona and New Jersey, are projected to each become billion dollar markets over the next few years.

My guess is very few people will anticipate the ramifications of this for AGH's market cap for the time being.

As a small cap that is still loss-making (though break-even is forecast by the company in the next 5 months), most investors aware of the stock will be waiting for concrete news of Peak's new orders before initiating or increasing their positions.

There is no telling by how much their order book will jump at the next announcement, but these are exciting times for long term holders who have journeyed with this Australian company.

Whilst this is by no means financial advice, personally, I'm very pleased to be one of those long term holders right now.

GLTA, do and share your own research.