Just 17 miles north of the U.S. border with Canada . . .
Johnson & Johnson (NYSE: JNJ) has set up a secret research lab.
To fund groundbreaking cannabis research.
This move sets up the Fortune 100 company for a major acquisition in Canada.
This could be the latest news from the Marijuana Buyout Boom!
Just click here for details.
Located in the MaRS Discovery District in downtown Toronto . . .
Johnson & Johnson has launched an incubator called JLabs Innovation. It’s designed to provide funding, office space and business support to innovative new businesses.
Inside this building…
. . . teams of scientists and entrepreneurs work on building new companies and future products.
Last year, JLabs welcomed two marijuana startups into the incubator.
This gives Johnson & Johnson direct exposure to the sector – and the ability to quickly make investments in these cannabis companies.
Now, Johnson & Johnson is a big deal. The company has $76 billion in annual sales and a market capitalization of $371 billion!
Johnson & Johnson was named the most admired company in the Fortune 500. The company is well respected and trusted by millions of customers.
That’s one reason the company set up shop in Toronto.
Here in the U.S., cannabis is illegal under federal laws.
That means a big company like Johnson & Johnson has lots of risk getting into cannabis. If U.S. federal authorities decide to enforce laws, the company could be on the hook for billions in fines.
So, instead of funding cannabis research here in the U.S . . . Johnson & Johnson is advancing its initiatives in Canada where it’s 100% legal.
It’s a great strategy . . . and it could pave the way for a major acquisition for the consumer products giant.
That’s because big companies like JNJ are desperate for growth. Next year, the company’s sales are expected to grow by less than 3%.
That’s hardly enough to justify the current stock price.
That’s encouraged the JNJ execs to hunt for big growth opportunities. And there’s nothing growing faster than legal cannabis.
I expect that Johnson & Johnson will soon announce a major acquisition.
These “pot stocks” could take off as soon as the news is announced.