In this article, we will be taking a look at the 12 cheap pot stocks to buy according to hedge funds.
Cannabis stocks have seen a great deal of volatility, with several large companies seeing declines of 65% or more over the previous three years. “This volatility is likely to define the cannabis sector in 2025,” said Anthony Coniglio, CEO of NewLake Capital Partners. “The news cycle will continue to drive trading volumes, as investors are eager to profit from any upward price movement, resulting in recurring cycles of rallies and pullbacks,” he stated.
Some analysts continue to have positive predictions for a few cannabis companies. Seaport Global Securities’ Sonny Randhawa started covering a number of cannabis stocks because he thinks a different situation might materialize. “With budgets constrained, we believe new customer penetration rates could accelerate as consumers spend more time at home and the bang-per-buck for cannabis vs. alcohol keeps moving higher,” he said, giving buy ratings to three key equities.
According to Jordan Tritt, CEO of the cannabis market intelligence company BDSA, new adult-use markets going online will be the main source of development in the cannabis industry over the next five years. “Established companies that have the resources to capture this growth” is his recommendation to investors.
The regulatory environment is another potential driver of the cannabis market’s expansion. Reclassifying cannabis from Schedule I to Schedule III, for example, may counteract IRS Rule 280E, which presently forbids the deduction of operating expenses, and increase the cash flows of cannabis companies by tens of millions, according to industry observers.
A laboratory with white-coated technicians carefully measuring out cannabis extracts.
Our Methodology
For our methodology, we selected pot stocks from Green Stock News’s Cannabis Stocks list and ranked them based on the number of hedge funds holding each stock, using data from Insider Monkey’s database for Q1 2025. In cases where multiple stocks had the same number of hedge fund holders, we used their price-to-earnings (P/E) ratios as a tiebreaker, favoring the stock with the lower P/E.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 12 cheap pot stocks to buy according to hedge funds.
12. Flora Growth Corp. (NASDAQ:FLGC)
Number of Hedge Fund Holders: 1
Flora Growth Corp. (NASDAQ:FLGC) is among the cheap pot stocks to buy. It is a global cannabis company headquartered in Fort Lauderdale, Florida, operating in over 15 countries. It offers a wide range of products, including pharmaceuticals, CBD wellness goods, food and beverages, and THC-infused products through a vertically integrated model.
In 2025, Flora Growth Corp. (NASDAQ:FLGC) made a strategic move into digital assets, investing $1 million across Ethereum, Solana, Sui, and Ripple. CEO Clifford Starke highlighted this step as a push toward Web3 innovation and long-term value creation, with more digital ventures expected. This unique approach in the cannabis sector marks the company as a forward-thinking player, aligning itself with emerging digital trends.
The business is also rapidly expanding its THC-infused beverage operations. It appointed Sammy Dorf, co-founder of Verano Holdings, as Executive Chairman to lead product growth. New brands like “Melo” and “Cloud Cola” have launched in major U.S. retail outlets, supported by a new facility and partnerships with distributors such as Sunshine State Distributing. These efforts aim to capture the growing demand as more states legalize THC beverages.
Internationally, Flora Growth Corp. (NASDAQ:FLGC) is entering Germany’s cannabis pilot program with a supply agreement via Curaleaf and the appointment of Dr. Manfred Ziegler to lead regional operations. This move positions the corporation to capitalize early on Europe’s emerging legal cannabis market.
At its 2025 shareholder meeting, Flora Growth Corp. (NASDAQ:FLGC) approved key changes, including increasing its incentive plan share cap and authorizing a reverse stock split to enhance market flexibility. New board members were also elected to support growth in wellness, beverages, and digital assets.
11. Greenlane Holdings, Inc. (NASDAQ:GNLN)
Number of Hedge Fund Holders: 1
Greenlane Holdings, Inc. (NASDAQ:GNLN) is a leading distributor of premium cannabis accessories, packaging, and vaporization products, operating through wholesale and direct-to-consumer channels across North America and internationally. In 2025, the company has strategically expanded beyond cannabis into the health and wellness sector, signaling a shift toward diversified, socially relevant offerings.
In July 2025, Greenlane Holdings, Inc. (NASDAQ:GNLN) became the exclusive fulfillment partner for Safety Strips Tech Corp.’s new e-commerce store, distributing ToxiShield products designed to detect fentanyl and drink tampering. This move aligns with growing public demand for harm reduction solutions and highlights the company’s pivot into health-focused technologies.
Also in July, the business selected JointCommerce as its B2C digital marketing platform, aiming to enhance its online presence through compliant and targeted cannabis marketing. This initiative is expected to improve consumer engagement and drive e-commerce growth across its retail platforms, including vapor.com.
Earlier in May, the corporation signed a U.S. distribution agreement with Greentank Technologies, a vape innovation leader known for its award-winning Quantum Chip vaporizers. The deal strengthens the company’s position in the vaporization space by offering advanced, research-driven products through its well-established sales channels.
Additionally, Greenlane Holdings, Inc. (NASDAQ:GNLN) integrated its wholesale platform with Mainstem’s B2B procurement marketplace to streamline inventory management, improve supply chain coordination, and enhance data-driven retail decisions. This tech-driven approach supports greater operational efficiency and retailer reach.
10. Agrify Corporation (NASDAQ:AGFY)
Number of Hedge Fund Holders: 2
Agrify Corporation (NASDAQ:AGFY) is transitioning from its roots in cultivation technology to a consumer-focused model centered on hemp-derived THC beverages. The company, known for its vertical farming units (VFUs) and cultivation software, recently sold its cultivation business and related assets to CP Acquisitions LLC, linked to former CEO Raymond Chang. This move allows the company to streamline operations and shift focus toward the rapidly growing THC beverage market.
A key part of this pivot is the acquisition of Señorita, an award-winning hemp-derived THC beverage brand known for flavors like Mango Margarita and Lime Jalapeño Margarita. Distributed in nine U.S. states and Canada, the brand aligns with rising consumer interest in low-calorie, alcohol-free cannabis alternatives. Agrify Corporation (NASDAQ:AGFY) is increasingly mentioned among cheap pot stocks to buy due to its low market valuation and growth potential in this segment. The company plans to expand the product line with new offerings such as Paloma and Ranch Water.
To support this new direction, the business raised $25.9 million in a private placement in late 2024, with Chairman and Interim CEO Ben Kovler personally participating, signaling leadership’s confidence in the strategy. The funding will help scale beverage operations and explore additional cannabis product opportunities.
Governance changes also reflect the company’s new consumer focus. Peter Shapiro, with entertainment industry experience, and Sanjay Tolia, a cannabis investor, joined the board in early 2025, bringing expertise in branding and market growth.
9. Urban-Gro, Inc. (NASDAQ:UGRO)
Number of Hedge Fund Holders: 2
Urban-Gro, Inc. (NASDAQ:UGRO) is a design-build and professional services firm focused on Controlled Environment Agriculture (CEA), cannabis cultivation technologies, and commercial construction. It offers architectural engineering, equipment innovation, and project management services to optimize facility efficiency in cannabis and broader commercial sectors.
As of mid-2025, Urban-Gro, Inc. (NASDAQ:UGRO) has secured several major contracts, signaling strong project momentum. Notable deals include a $24 million construction contract with a Midwest-based Multi-State Operator (MSO) for a vertically integrated cannabis facility and a $6 million LED lighting equipment contract with a major North American cannabis operator, both expected to generate revenue in 2025. The firm also expanded its footprint beyond cannabis, securing multiple repeat contracts with Fogo de Chão for new restaurant construction across several U.S. states, a $4 million healthcare design project for a southeastern U.S. hospital, and a $1.2 million architectural agreement with the Muscogee County School District in Georgia.
Despite facing regulatory challenges related to delayed financial filings and restated earnings due to historical tax accounting errors, the company has been granted time until October 2025 to regain full Nasdaq compliance. In line with strengthening its financial position, the business exited its investment in XS Financial Inc. in May 2025, reinforcing a shift toward core operations and capital efficiency.
Urban-Gro, Inc. (NASDAQ:UGRO)’s current trajectory reflects strategic diversification, a focus on high-value cannabis and commercial contracts, and a commitment to innovation, particularly in CEA and sustainable facility design.
8. Canopy Growth Corporation (NASDAQ:CGC)
Number of Hedge Fund Holders: 4
Canopy Growth Corporation (NASDAQ:CGC), a leading global cannabis company, is making strategic advancements focused on product innovation, U.S. market expansion, and financial strengthening. Recently, the company launched Deep Space Infused pre-rolls, tapping into the growing demand for high-potency cannabis products. This aligns with recognition for its vaporization technology brand, Storz & Bickel, at the 2025 Business of Cannabis Awards, underscoring the corporation’s commitment to innovation.
A major development is Canopy Growth Corporation (NASDAQ:CGC)’s accelerated entry into the U.S. cannabis market. Shareholders approved a new class of exchangeable shares to facilitate the acquisition of U.S.-based cannabis companies such as Acreage Holdings, Mountain High Products, Wana Wellness, and The Cima Group. These assets will be consolidated under Canopy USA, LLC, with financial reporting expected later in 2025. The company is increasingly discussed among cheap pot stocks to buy as investors look for value plays ahead of potential federal cannabis legalization in the U.S., the world’s largest cannabis market.
On the financial front, the firm is working to improve its balance sheet by prepaying US$50 million of its Senior Secured Term Loan by March 2026. This initiative will save approximately US$6.5 million annually in interest expenses, enhancing financial flexibility to support its expansion plans.
Looking ahead, Canopy Growth Corporation (NASDAQ:CGC) will release its Q1 fiscal 2026 results on August 8, 2025, which will provide further insight into the execution of its U.S. strategy and broader growth trajectory.
7. High Tide Inc. (NASDAQ:HITI)
Number of Hedge Fund Holders: 4
High Tide Inc. (NASDAQ:HITI), a leading Canadian cannabis retailer, is rapidly expanding its footprint through strategic financing and aggressive store growth. Operating under the Canna Cabana brand, the company now has 202 stores across Canada, including recent openings in Winnipeg and Toronto, and aims to exceed 300 locations nationwide. The corporation also runs a robust e-commerce platform, wholesale operations, and manufactures cannabis accessories, making it a vertically integrated player in the space.
In July 2025, High Tide Inc. (NASDAQ:HITI) secured $30 million in convertible debt financing from Cronos Group Inc., a major licensed cannabis producer. The funds, designated entirely for expansion, come with a 4% interest rate and are convertible at $4.20 per share. Cronos also received warrants at $3.91 per share, signaling strong confidence in the company’s growth strategy. This capital infusion supports both acquisitions and organic expansion, reinforcing the business’s retail-forward model.
The company’s Cabana Club loyalty program recently surpassed 2 million members, highlighting strong customer engagement and market leadership. Analysts also report that High Tide Inc. (NASDAQ:HITI) is finalizing due diligence for a potential acquisition in Germany, which is an important step in its international expansion plans. While competitors scale back, the company is capitalizing on low-cost opportunities abroad, complementing its strong Canadian base.
6. Organigram Global Inc. (NASDAQ:OGI)
Number of Hedge Fund Holders: 4
Organigram Global Inc. (NASDAQ:OGI), a leading Canadian cannabis producer, is accelerating its international expansion with a strong push into the U.S. hemp-derived THC beverage market. Known for brands like Edison, SHRED, and Monjour, the company has launched a direct-to-consumer e-commerce platform for its Collective Project beverage line, now available in 25 U.S. states. This move marks a major step as the company taps into a market projected to grow from over $1 billion today to $4 billion by 2028.
The platform features a range of innovative products, including “Spark Juices,” sparkling lemonades with varying THC levels and formats. A second phase rollout will introduce “Fetch,” a line of hemp-derived sodas expected later in summer 2025. These offerings target consumers seeking alcohol alternatives and represent a major shift in Organigram’s brand strategy. As the company gains U.S. market traction, it is increasingly showing up on investor radars as one of the cheap pot stocks to buy.
CEO Beena Goldenberg emphasized that while the company has built a strong brand presence in Canada, its future growth is tied to international markets. Organigram Global Inc. (NASDAQ:OGI) reported a 177% year-over-year surge in international revenue, fueled by rising sales in Germany and the U.K. Partnerships, such as the one with Sanity Group in Germany, are helping the company secure long-term supply chains and deepen European market access.
Organigram Global Inc. (NASDAQ:OGI) also continues to innovate in product development, including advances in fast-acting nano-emulsion technology to deliver a quicker, more consistent experience with cannabis beverages. With ongoing expansion efforts and new product lines, the business is targeting a half-billion-dollar annual revenue run rate, positioning itself as a major player in the evolving global cannabis market.
5. Village Farms International, Inc. (NASDAQ:VFF)
Number of Hedge Fund Holders: 5
Village Farms International, Inc. (NASDAQ:VFF), once known for its produce operations, has fully transitioned into a cannabis-focused company following the privatization of its fresh produce business on May 30, 2025. This strategic shift allows the company to concentrate entirely on cannabis cultivation and international sales, aligning with global demand for regulated medicinal cannabis.
Now operating 160 acres of advanced greenhouse facilities, Village Farms International, Inc. (NASDAQ:VFF) is expanding its cannabis exports to markets including Germany, the UK, Israel, Australia, and New Zealand. Its EU-GMP-certified Canadian facility supports this global reach. Central to its operations is Pure Sunfarms, a wholly owned subsidiary and one of the largest cannabis producers in the world, with 2.2 million square feet of cultivation space. The brand has recently launched innovative packaging and released cannabis potency research to better meet evolving market expectations.
To strengthen its financial position, the corporation refinanced its debt, secured a $55 million investment via its new Vanguard Food joint venture, and regained Nasdaq compliance. These moves enhance flexibility and reinforce the company’s long-term international growth plans.
CEO Michael DeGiglio described this as a new era for Village Farms International, Inc. (NASDAQ:VFF), which is now focused on becoming a global cannabis leader. With greenhouse infrastructure in place and land reserves available in Texas for future cultivation, the company is well-positioned to expand operations and scale internationally. This transformation reflects a broader trend of legacy agriculture firms entering the cannabis industry, using their cultivation expertise to meet rising global demand.
4. Aurora Cannabis Inc. (NASDAQ:ACB)
Number of Hedge Fund Holders: 7
Aurora Cannabis Inc. (NASDAQ:ACB), a prominent Canadian medical cannabis company, is strengthening its global footprint by focusing on international markets, particularly in Europe and Australia. The company has shifted away from recreational cannabis, positioning itself as a leader in the medical segment with strong fiscal results, reporting a 93% year-over-year increase in global medical cannabis revenue, which has now surpassed its domestic Canadian sales. Australia has become a key growth market where the company ranks as the second-largest supplier, while Germany’s progressive cannabis laws offer further expansion opportunities.
Aurora Cannabis Inc. (NASDAQ:ACB)’s growing international presence and improving fundamentals have placed it among cheap pot stocks to buy, especially for investors seeking value in the medical cannabis space. Its international growth is underpinned by a debt-free cannabis business, positive adjusted EBITDA, and a renewed focus on profitability, marking a notable turnaround. The company continues to engage shareholders, with its 2025 Annual General and Special Meeting scheduled for August 8.
Beyond financials, the business remains committed to social responsibility through initiatives like “Strains for Heroes,” which develops medical cannabis products for veterans in collaboration with the community. Five percent of net profits from these products are donated to veteran-focused organizations, demonstrating the company’s commitment to both innovation and impact.
3. SNDL Inc. (NASDAQ:SNDL)
Number of Hedge Fund Holders: 10
SNDL Inc. (NASDAQ:SNDL) stands as one of Canada’s largest vertically integrated cannabis companies and the biggest private-sector liquor and cannabis retailer in the country. Its extensive portfolio includes retail banners like Ace Liquor, Wine and Beyond, Value Buds, and Spiritleaf, alongside cannabis brands such as Top Leaf, Contraband, and Palmetto. The company is steadily expanding its footprint across North America through strategic acquisitions and partnerships.
Recent developments reflect SNDL Inc. (NASDAQ:SNDL)’s push toward retail growth and technological innovation. It acquired 32 cannabis retail stores from 1CM for $32.2 million, boosting its market share and consumer reach. To further strengthen customer engagement, the corporation launched its Rise Rewards loyalty program across its retail operations. Additionally, the business appointed Phil McBride as Chief Information Officer and Navroop Sandhawalia as President of the Liquor Division. These leadership changes aim to drive digital transformation, AI integration, and operational efficiency.
SNDL Inc. (NASDAQ:SNDL) also began trading on the Canadian Securities Exchange (CSE) under the symbol “SNDL” as of April 11, 2025, broadening its investor base.
2. Cronos Group Inc. (NASDAQ:CRON)
Number of Hedge Fund Holders: 13
Cronos Group Inc. (NASDAQ:CRON) is a Canadian global cannabinoid company engaged in the cultivation, production, and marketing of cannabis products across Canada, Israel, and other international markets, with brands like Spinach, Lord Jones, and PEACE NATURALS.
A key recent development is Cronos Group Inc. (NASDAQ:CRON)’s $30 million convertible debt financing to High Tide Inc., a major cannabis retailer. This junior secured loan supports High Tide’s expansion plans to grow its store network beyond 300 locations in Canada and fund acquisitions. The loan carries 4% interest and includes options to convert debt into equity and warrants, reflecting a strategic partnership aimed at strengthening retail presence and enhancing market access for Cronos’s products.
The corporation is set to report its Q2 2025 earnings on August 7, providing updates on operational progress and strategic outlook. The company has shown solid revenue growth of 27.6%, signaling effective expansion in a competitive market. While not paying dividends, the business focuses on reinvesting for growth, with analysts holding a cautious hold/buy stance.
This investment in High Tide marks a strategic emphasis on retail partnerships to improve market penetration and consumer access. By aligning closely with a leading retailer, Cronos Group Inc. (NASDAQ:CRON) aims to capture more market share and curb illicit cannabis sales. The convertible debt structure suggests potential for deeper collaboration or equity stakes, positioning both companies for mutual growth as retail distribution becomes increasingly critical in the cannabis industry.
1. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 14
Tilray Brands, Inc. (NASDAQ:TLRY) tops our list for being one of the cheap pot stocks to buy. It is a global leader in cannabis, beverage, and wellness sectors, reporting Q4 fiscal 2025 revenue of $224.53 million, reflecting a slight 2.3% year-over-year decline. While cannabis and beverage revenues dipped due to strategic shifts and permit delays, the distribution and wellness segments showed modest growth. Despite a significant net loss, mainly from non-cash impairment charges, adjusted earnings per share exceeded expectations, highlighting operational resilience. CEO Irwin D. Simon emphasized the company’s focus on innovation and leveraging its global infrastructure to capitalize on the expanding legal cannabis market.
Tilray Brands, Inc. (NASDAQ:TLRY) continues to diversify through international expansion and strengthening its beverage portfolio, notably acquiring four craft beer brands from Molson Coors in the U.S. The company is also adopting AI-driven horticulture automation to improve efficiency and cut costs in its global greenhouse operations, signaling a technology-forward strategy amid industry challenges.
Investor confidence received a boost with CFO Carl A. Merton’s insider purchase of 33,500 shares in late July 2025, indicating internal belief in Tilray Brands, Inc. (NASDAQ:TLRY)’s future despite the modest transaction size.
While we acknowledge the potential of TLRY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TLRY and that has 100x upside potential, check out our report about this cheapest AI stock.
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