With legal marijuana sales in North America expected to climb from $6.7 billion in 2016 to over $20 billion by 2020, the prices of some marijuana penny stocks will skyrocket right along with the 198% increase in sales.
Marijuana penny stocks are still speculative investments, and only some will see their share prices jump thanks to the industry's growth. But we want to make sure Money Morning readers are as informed as possible about what's going on in the pot penny stocks sector.
And we've found three marijuana companies whose share prices could rise as they buy out other cannabis companies. While we aren't recommending you buy these penny stocks, their acquisitions make them worth watching this September.
The first pot penny stock on our watch list could grow thanks to a $12 million acquisition of a marijuana social media company...
Marijuana Penny Stock to Watch No. 3: MassRoots Inc.
According to an Aug. 23, 2017, Forbes report, MassRoots Inc. (OTCMKTS: MSRT), a social media company for cannabis users, acquired CannaRegs Inc. in a $12 million deal.
CannaRegs is a tech company that tracks changes in cannabis rules and regulations. Cannabis companies can also sign up for CannaRegs' subscription service to stay up to date on any changes in marijuana laws.
CannaRegs is debt-free and has $450,000 in annual revenue thanks to its monthly subscription service. According to the Aug. 23 Forbes report, MassRoots CEO Isaac Dietrich said CannaRegs will "significantly increase" MassRoots' monthly recurring revenue through paid subscribers.
What Is CannaRegs?
And MassRoots has an opportunity to expand its subscriber base now through the end of December...
Recreational marijuana can be sold legally in California on Jan. 1, 2018. With only five months to prepare, these companies need a service like CannaRegs to stay informed of any changes or updates in the laws.
In the last 52 weeks, the MSRT stock price has traded between $0.38 and $1.18 per share. MSRT is now trading at $0.48 per share.
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As MassRoots updates us on its new clients and the revenue they bring after its latest acquisition, we will keep Money Morning readers in the loop through our free Profit Alerts service.
We also have two more marijuana penny stocks to watch in September on our radar, including a pharmaceutical company that just made a million-dollar deal to enter the medicinal marijuana industry...
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Marijuana Penny Stock to Watch No. 2: mCig Inc.
According to a July 25 MarijuanaStocks.com report, mCig Inc. (OTCMKTS: MCIG) is trying to accelerate its growth through strategic acquisitions.
The company already offers a variety of services and products, including vaporizers, dispensary supplies, and construction services.
Now it wants to acquire proprietary cannabis oil extraction technologies and established brands. The July 25 MarijuanaStocks.com report also said mCig wants to acquire existing cultivation, production, and distribution licenses in California, Nevada, and other recreational states.
MCig hasn't made any deals official yet, but we are keeping a close eye on it to see if any acquisitions take place in September.
Over the last 52 weeks, the MCIG stock price has traded between $0.03 per share and $0.50 per share. It's currently trading at $0.22.
Marijuana Penny Stock to Watch No. 1: Easton Pharmaceuticals Inc.
Easton Pharmaceuticals Inc. (OTCMKTS: EAPH) is known for making motion sickness gel Nauseasol and anti-aging wrinkle cream Skin Renou HA.
Now it's getting into the cannabis industry...
According to an Aug. 16 report from Bezinga, Easton is paying part of a $1.3 million deal to a Canadian-based company, the Alliance Group. It's already advanced the company $575,000. The final deal will give Easton a stake in 45 acres of a 135-acre parcel of land used for marijuana cultivation and production.
Alliance projects it will receive approval to legally grow medical and recreational marijuana in the next 30 to 60 days.
Until revenue can be generated from its marijuana crops, Easton will receive 50% of Alliance's revenue from its other businesses.
It's unclear if Easton will use the cannabis for its own business or just sell it to other pharmaceutical companies.
However, with Canada set to completely legalize cannabis in 2018, there should be increased demand from pharmaceutical and recreational companies to buy cannabis.
Over the last 52 weeks, the EAPH stock price has traded between $0.03 and $0.06 per share. Currently, the EAPH stock price trades at $0.03 per share.
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