For investors looking for a high-growth stock operating in the fastest growing industry in the world, cannabis market expert Michael Berger — President of Technical420 — highlights a Canadian-based development-stage company that is very undervalued and has remarkable growth potential.

The cannabis industry is the fastest growing industry in the world and this growth has been the catalyst behind the creation of new sectors within the cannabis industry.

Although the United States cannabis industry continues to attract the most attention from investors and the media, especially after California, Nevada, Massachusetts, and Maine legalized recreational cannabis; we continue to view the Canadian cannabis industry as one of the best places to invest.

Also, the upcoming legalization of recreational marijuana in Canada has us even more favorable on the companies levered to this massive growth opportunity.

Canada Continues to Lead

We are favorable on the Canadian cannabis industry for many reasons but one of the main factors is that medical cannabis is legal at the Federal level. Unlike what we have in the United States, Canadian cannabis companies can use banks and access basic business services for companies to operate more efficiently and effectively.

The Canadian medical cannabis industry is growing at an impressive 12% per month and it now has more than 90,000 patients. The stocks levered to this growth have seen its share price move significantly higher over the last month and we see further upside from here as the sector continues to grow.

A New Opportunity

Earlier this week, Canabo Medical Inc. (CMM: TSX Venture) commenced trading on the TSX venture exchange. The company owns and operates CMC Clinics which is the largest chain of medical cannabis clinics in Canada.

We are favorable on Canabo for the following reasons: 1) It has a proven track record of success when it comes to growing its patient base, 2) The company continues to see revenue growth on account of its rapidly growing patent base, 3) Its management continues to execute on initiatives and create value for shareholders, 4) Its partnership model should prove to benefit is existing business models, and 5) We are favorable on its leverage to rapidly growing industry.

A Growing Footprint

Since inception, CMC Clinics has seen more than 10,000 patients. CMC currently operates ten medical clinics with more than 40 licensed physicians. Canabo expects to operate out of 14 medical clinics by the end of year.

We expect to see CMC see significant growth as the number of registered patients in Canada continues to grow. The clinic does not charge any patient fees and it offers a proprietary cannabinoid educator training program. This program helps patients learn more about cannabis and the nuances of cannabinoid treatments.

Through a referral based system, physicians are able to meet with patients in a seamless and efficient process. The physician meets with the patient about medical cannabis, not the underlying condition.

Revenues Continues to Grow as a Result of its Multiple Stream

Canabo benefits from have three primary revenue streams. The company generates revenue through physician consultations, database subscriptions, and independent medical evaluation consulting.

The patient benefits from Canabo being a referral only clinic. The costs associated with physician-patient interactions are fully recoverable from the Provincial Health Departments and we view this as an attractive aspect of Canabo’s service.

Canabo maintains a complete database on all patients, including medical, market demographics and treatment efficacy. Canabo is able to boost its top-line by selling annual subscriptions as well as one-off analysis assignments for access to its proprietary data.

Canabo also provides consulting services to the insurance and employer industries. Through its extensive research and data, the company is able to provide guidance on cannabinoid treatments or workplace safety issues on a fee-for-service basis.

Expects Over 15,000 Patients by Year-End

Throughout 2016, Canabo has seen the number of new patients grow on account its referral system, which continues to see a greater than 40% conversion rate.

We expect Canabo to continue to see strong patient growth on a month-over-month basis. By the end of 2016, the company expects to have more than 15,000 patients.