Alcanna (LQSIF) - Former Liquor Stores

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not vested

Marijuana Stocks to Consider: Alcanna

Alcanna (OTCMKTS:LQSIF) is another marijuana stock worth considering today. Alcanna was formerly known as Liquor Stores N.A. Ltd. and ran, not surprisingly, liquor stores in Canada and the United States.

It has realigned its business model in recent months, however. It’s divesting some of the U.S.-based liquor stores to become a more Canada-focused operation.

And, most importantly, Alcanna will now become a marijuana retailer. Alcanna currently operates about 175 liquor stores in Alberta, along with a smaller number in British Columbia. That gives it a nice position in the sales of already heavily regulated goods. That makes it a natural player for building out a marijuana retail business.

The company also earned a sizable endorsement. Aurora Cannabis (OTCMKTS:ACBFF) bought 25% of Alcanna earlier this year for a more than $100-million investment. That gives Alcanna plenty of capital to build out its retail business and a close partnership with one of Canada’s big emerging producers.

There is plenty of risk here. Alcanna had a mixed track record as a pure-play liquor store operator. Adding marijuana to the mix doesn’t guarantee success. But the valuation is reasonable, and Alcanna offers an interesting 4% dividend yield while waiting for the growth story to potentially play out.

Source: Investor Place