On July 3, Horizons completed its quarterly rebalance of the Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ).

In the recent rebalancing, the ETF expanded to include 10 more companies.

Today we have picked out four cannabis stocks that were added to the HMMJ that could benefit most from this inclusion.

Some are ready to call it quits on the cannabis market.

But the Green Revolution has only just gotten started.

The big plays—Canopy Growth Corp, Aurora, Cronos Group—saw big gains in 2017 but slowed down in 2018 and seem to have stalled in 2019.

Some worry that it’s just a big bubble—but they’re not looking closely enough.

There are plenty of opportunities for investors looking to cash in on the cannabis boom—and TruTrace Technologies (CSE:TTT, OTCMKTS:BKKSF) is one of them.

Smiths Falls, Ontario-based Canopy Growth (NYSE:CGC) is, in many ways, the epicenter of the legal marijuana industry. Despite the steady decline in its share price since the legalization of adult-use recreational marijuana in Canada last October, the company is still the only borderline large-cap company in the industry, as well as the market share leader in terms of annual sales. Canopy also sports the richest tie-up with a noncannabis company through its roughly $5 billion CAD equity investment from alcoholic beverage giant Constellation Brands (NYSE:STZ). 

On a broad scale, the marijuana industry has been mostly unstoppable for years. Canada has become the first industrialized country in the world to legalize recreational cannabis, while 33 U.S. states have given the green light to medical marijuana (11 of which also allow adult-use consumption). These ongoing legalization efforts, and the expectation of organic growth in legalized countries/states, is what's fueled the march higher in marijuana stocks.

CannTrust plummets after disclosing regulatory non-compliance

What happens when new technology legitimizes a market that’s already worth nearly $350 billion?

We are about to find out.

The market is cannabis, and the tech is from a little-known company called TruTrace (CSE:TTT; OTC:TTTSF) that’s years ahead of the competition in this multi-billion-dollar niche segment.

Some of the cannabis grown by CannTrust Holdings Inc. in unlicensed rooms at its Niagara facility has already been shipped to provinces across the country, the company’s chief executive officer, Peter Aceto, confirmed on Monday.

The acknowledgment in an interview with the Financial Post came after CannTrust revealed Monday that Health Canada had put a freeze on more than 5,000 kg of marijuana at its Pelham, Ont., plant after finding it had been grown in five unlicensed rooms. The company’s stock closed down more than 20 per cent in Toronto following the announcement.

It is unclear when the unlicensed product was packaged and shipped to the provinces, or whether the product in question had been sold to Canadian consumers.

Cannabis stocks have lost their lustre of late, but the catastrophic implosion that accompanies a bubble bursts has yet to happen three quarters into year one of nationwide legalization.

While it may seem somewhat safer to invest in cannabis firms like Canopy Growth(TSX:WEED)(NYSE:CGC) now that they’ve had the opportunity to establish themselves in a post-legalization era, it’s important to remember that there are uncertain material side effects from mixing cannabis and politics.

HEXO Corp (TSX:HEXO) (NYSE:HEXO) has emerged as one of the more popularmarijuana stock in the sector and the reasons behind the popularity are not hard to see. One of the most important factors behind the positivity surrounding the company is its dominance in the province of Quebec, Canada.  HEXO has managed to capture the attention of the adult- recreational cannabis market and that could be the company’s springboard to success as it plans to expand further.

Marijuana can produce radically different effects depending on the person, researchers studying different areas of the brain have found.

It’s a drug that’s been legal now for close to a year, but one that researchers like Dr. Steven Laviolette of the Schulich School of Medicine and Dentistry, say needs further examination.

“From a research point of you it’s a fascinating drug because it has this diverse range of psychological effects and we are really just starting to scratch the surface as to what’s happening in the brain to control those effects.”

By using rodent models, Laviolette and his research team studied the effects THC (tetrahydrocannabinol) had on specific areas of the brain.