Today we have discovered some cannabis CBD stocks that may have an early-mover advantage in the fast-growing pet CBD market
SmallCapPower | May 15, 2019: Jefferies has projected that the cannabis industry will be worth US$130.0B in a decade if the industry expands to sectors such as alcohol, health and wellness and pet care. In U.S. for 2018, US$72.56B was spent on pets with US$18.1B attributed to vet care and US$30.3B spent on food (American Pet Products Association, 2018). The pet market is being driven by increasing pet humanization trends and increasing dog ownership. CBD products for pets can help treat anxiety, chronic pain and skin aliments, among others. Today we have identified four cannabis CBD stocks that may have an early leg up in the CBD pet care market.
*Share prices as at close Monday, May 13, 2019, data obtained from S&P Capital IQ
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True Leaf Medicine International Ltd (CSE:MJ) – $0.48
Cannabis
True Leaf is based in Vernon, Canada and has two main operating divisions: True Leaf Medicine Inc. and True Leaf Pet Inc. The True Leaf Medicine division is a licensed producer in the Canadian market for medicinal cannabis. True Leaf Pet is one of the first companies to offer hemp-based products for animals in the world. The Company’s pet line offers chews, dental sticks and supplement oils in about 3,500 stores and online in North America and Europe. On March 6, 2019, the Company announced the completion of True Leaf Campus, a cultivation and production facility in Lumby, B.C. The addition offers 18,000 sq. ft for the initial grow area, laboratory services, whole-plant extraction and production of products.
- Market Cap: $49.9 Million
- YTD Return: – 2.0%
- 30 Day Average Trading Volume: 81,000
- 90 Day Average Trading Volume: 169,000
Charlotte’s Web Holdings Inc. (CSE:CWEB) – $20.18
Cannabis
Charlotte’s Web Holdings a vertically-integrated cannabis company that is headquartered in Boulder, CO. With an initial focus on hemp-based, cannabidiol wellness products, the Company is starting to expand its offering with pet-focused products. The Company offers a hemp extract oil, infused balm, and soon to be released hemp extract chews for pets. This addition to the offered pet products was announced on May 7, 2019 and is the result of the high demand and sales growth that exceeded expectations. On January 15, 2019, the Company announced it produced ~675,000 lbs of hemp in 2018, which is about 10 times greatere than estimated. This falls in line with their strategy to grow more hemp than required for the subsequent year to help minimize the risk of shortages with the increasing demand.
- Market Cap: $1.9 Billion
- YTD Return: +28.1%
- 30 Day Average Trading Volume: 471,000
- 90 Day Average Trading Volume: 407,000
CannTrust Holdings Inc. (TSX:TRST) – $8.33
Cannabis
CannTrust offers medical and recreational cannabis products in Canada. Currently, the Company serves more than 70,000 medical patients. The Company presently has a 50,000 sq. ft hydroponic facility in Vaughan, Ontario and is expanding to a 430,000 sq. ft cultivation facility in the Niagara area. On May 13, 2019, the Company signed a Letter of Intent (LOI) with Société Québécoise du Cannabis (SQDC) that will secure distribution of cannabis products for the recreational market in Quebec. This follows an announcement on April 18, 2018, when CannTrust announced that it entered into a Letter of Intent with Grey Wolf Animal Health Inc. Grey Wolf is a private company that focuses on meeting the underserved needs of veterinarians and pet owners.
- Market Cap: $1.1 Billion
- YTD Return: +8.5%
- 30 Day Average Trading Volume: 2,309,000
- 90 Day Average Trading Volume: 2,232,000
Curaleaf Holdings Inc. (CSE:CURA) – $14.48
Cannabis
Curaleaf is a vertically-integrated, U.S.-based cannabis company that cultivates, processes, markets and/or dispenses a variety of cannabis products, including vape oils, flower, pre-rolls, topical lotions, mints and edibles. The Company currently operates 44 dispensaries in 12 different states. On May 10, 2019, the Company announced its entrance into the pet market with the launch of Bido, a line of hemp-based CBD products for pets. The line offers oils and treats in a variety of flavors. Additionally, Curaleaf reported on May 6, 2019, a signed definitive agreement that will give them the option to acquire Ohio Grown Therapies’ medical cannabis cultivation and processing licenses and facility in Ohio. This would add 32,000 sq. ft of cultivation and processing space. Curaleaf expects to acquire Ohio Grown Therapies cultivation and processing licenses in H2/19.
- Market Cap: $6.6 Billion
- YTD Return: +108.9%
- 30 Day Average Trading Volume: 1,209,000
- 90 Day Average Trading Volume: 1,156,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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