Cannabis stocks to benefit from 2019 Health Canada regulations

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While recreational marijuana has been legal in Canada since October 2018, some companies have been left in limbo as they wait for regulations on cannabis edibles, topicals and extracts.

However, that's expected to change later this year.

Once Health Canada finalizes its proposal on regulations, such cannabis products will be permitted for sale under The Cannabis Act no later than October 17, 2019.

Three of the leading cannabis stocks to watch on this developing story include The Yield Growth Corp. (CSE: BOSS) (OTCQB: BOSQF), Aurora Cannabis Inc. (NYSE: ACB) and HEXO Corporation (TSX: HEXO) (OTC PINK: HYYDF).

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The Yield Growth Corp's (BOSS) (BOSQF) hemp-based wellness brands could very well be disruptive to several sectors, including wellness, makeup and leisure for example. The company just announced that it has engaged Incanco Cannabis to develop plans and prepare applications for a micro-processing license, a research license and a medical sales license under The Cannabis Act for Yield Growth and its subsidiaries. Yield Growth plans to apply for these licenses so it can legally infuse its full line of wellness products with CBD and THC and sell them in Canada.

Furthermore, thanks to increased demand for its hemp root oil, which just became decriminalized under the Cannabis Act in Canada and the 2018 U.S. Farm Bill, The Yield Growth Corp. has plans to build out its commercial production facility this year.

At the moment, The Yield Growth subsidiaries are developing and manufacturing personal care products containing hemp root oil and various cannabinoids. The Yield Growth intends to obtain necessary licenses to process cannabis and manufacture cannabis products in multiple jurisdictions where such products can be sold.

Aurora Cannabis (ACB) is quickly taking advantage of the wellness benefits of CBD, as well. In September 2018, Aurora acquired Europe's largest producer, processor and supplier of organic hemp and hemp products, Agropro UAB, and hemp processor and distributor Borela UAB. All as Aurora seeks to extract, refine and produce organic hemp biomass into a number of CBD-based wellness products.

The company also made headlines in December 2018 after announcing it entered into an agreement to invest $10 million through a brokered private placement in High Tide Inc., a private cannabis and lifestyle accessories retailer.

"In addition to four operational cannabis retail stores, High Tide has developed a broad network of smoking accessories and cannabis lifestyle stores that feature unique products, supported by strong branding that has resonated well with Canadian consumers," said Terry Booth, CEO of Aurora. "Through our investment, we gain exposure to two unique retail store concepts currently launching across Canada, as well as established cannabis culture brands and thousands of proprietary accessories. We look forward to working with the team at High Tide and supporting them as they execute on their aggressive growth strategy.''

Another likely beneficiary is HEXO Corporation (HEXO), which has been rallying since announcing it applied for listing on the NYSE.

Upon approval, HEXO Corporation will trade on the NYSE American under ticker symbol "HEXO", the same symbol the Company's common shares on the Canadian exchange. HEXO shares will also continue to trade on the OTC PINK under the ticker symbol "HYYDF" until completion of the NYSE American listing.

The company also just closed a joint venture transaction with Molson Coors for opportunities in the cannabis-infused beverage market, which could benefit from Health Canada's coming decision, as well. The company is also set to be a top 10 cannabis producer by annual output this year, with an estimated 108,000 kilograms at peak capacity.

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