The Canadian cannabis stocks we’ve weeded out have announced significant financings early in 2019
SmallCapPower | March 26, 2019: Today we have identified three small Canadian cannabis stocks that have received significant financings in the New Year. Through various forms of financing, the following companies have either issued equity or received a line of credit, all of which can be used to fuel growth both organically and inorganically.
*Share prices as at March 22, 2019, data obtained from S&P Capital IQ
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Valens GroWorks Corp. (CSE:VGW) – $3.11
Cannabis
Valens GroWorks is focused on specialized extraction methodology, distillation and cannabinoid isolation and purification. The Company has signed multiple extraction agreements with major LPs. On February 26, Valens signed a multi-year extraction agreement with Tilray for a minimum amount of 15,000 kg of dried cannabis per year. Additionally, on March 11, 2019, Valens signed another extraction agreement with The Green Organic Dutchman to process a minimum of 30,000 kg of cannabis in the first year, and 50,000 kg in the second year. On March 20, the Company announced that it has entered into a bought deal with AltaCorp Capital, as lead underwriter, and including GMP Securities, Raymond James, Haywood Securities, and Mackie Corp where the underwriters have agreed to purchase 12,711,864 units of Valens at C$2.95 per unit, representing approximately $37.5M of aggregate gross proceeds.
- Market Cap: $292.2 Million
- 1-Week Total Return: -4.2%
- 1-Month Total Return: +0.7%
- 30-Day Average Volume: 835,000
- 90-Day Average Volume: 585,000
Eve & Co Incorporated (TSXV:EVE) – $0.58
Cannabis
Eve & Co holds cultivation and processing licences for the production and sale of various cannabis products through its wholly-owned subsidiary, Natural MedCo Ltd. Natural MedCo received its cultivation license from Health Canada in 2016 and is Canada’s first female founded licensed producer. The Company’s owns 220,000 sq. ft. of greenhouse production space in Middlesex Country Ontario, with 32 acres of land for future expansion. Eve & Co has recently begun its construction of its 780,000 sq. ft. expansion plan, anticipating a total greenhouse capacity of 1,000,000 sq. ft. On March 19, the Company announced that through Natural MedCo, it has entered into a credit facility valued at $18.7M, with Royal Bank of Canada, to fund its greenhouse expansion, at a rate of prime plus 1%, which currently sits at 3.95% annually.
- Market Cap: $135.9 Million
- 1-Week Total Return: +12.3%
- 1-Month Total Return: +81.3%
- 30-Day Average Volume: 1,973,000
- 90-Day Average Volume: 1,263,000
AgraFlora Organics International Inc. (CSE:AGRA) – $0.71
Cannabis
AgraFlora Organics is a Canada-based cannabis company. The Company has an indoor cultivation facility in London, ON and has a joint venture (JV) with Propagation Service Canada that operates a 2,200,000 sq. ft. greenhouse complex in Delta, BC. On March 22, 2019, Organic Flower Investments Group announced that it has completed a strategic investment in AgraFlora Organics, acquiring an additional 44,852,040 common shares for a cash payment of $20M. Organic Flower Investments has advanced $40M for 89,704,080 common shares to date. Organic Flower Investments Group Inc. is an investment holdings company that provides financing to early-stage private and public companies. It focuses its investments on the cannabis, bio-medical, pharmaceutical, and naturopathic sectors.
- Market Cap: $308.9 Million
- 1-Week Total Return: +16.7%
- 1-Month Total Return: +121.9%
- 30-Day Average Volume: 8,089,000
- 90-Day Average Volume: 3,952,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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