Ayr Strategies (CBAQF) is an under-the-radar cannabis play that currently trades on the Toronto-based NEO exchange at a deep discount to its industry peers, despite excellent profitability. We think the discount is explained partly by the company's former structure as a SPAC (Special Purpose Acquisition Vehicle) and the lack of analyst coverage.
We think reporting and knowledge of the company's excellent fundamentals will follow, and the discount should dissipate eventually. Investors willing to trade in a relatively illiquid stock should consider taking advantage of the valuation disparity at play.