The Canadian cannabis stocks we’ve weeded out have been top performers during the past month
SmallCapPower | April 21, 2020: The cannabis industry could fare well during COVID-19, as medical patients will still need their dosage and recreational users will likely continue to consume product at home to deal with the boredom of self isolation. Regardless, we have identified two small Canadian cannabis stocks with the best upward momentum during the past month.
For Our Complete Coverage Of Canadian Marijuana Stocks Click Here
*Returns are based on closing stock prices as of April 20, 2020
Avicanna Inc. (TSX:AVCN) – $1.61
Avicanna is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of plant-derived, cannabinoid-based products. The Company has four main product offerings. These include:
- Cannabinoid-based Pharmaceuticals with several products in various stages of pre-clinical and clinical development.
- A Phyto-therapeutic product line designed for medical use in a range of formats, such as transdermal patches, topicals, tablets, sublingual sprays and oil tinctures.
- A Derma-cosmetics product line, which is formulated to maintain the health and beauty of the skin and includes anti-aging and skin moisturizers (expected to launch by the end Q4/20).
- Cannabis Extracts and Purified Cannabinoids: Large-scale, low-cost, organic, and sustainable source of THC/CBD-based cannabis extracts/purified cannabinoids for B2B, medical, cosmetic and pharmaceutical companies.
Avicanna has two cultivation assets in Santa Marta, Colombia, with a current capacity of approximately 31,000 kilograms of dried flower annually along with extraction capacity of 300kg of biomass per day. On April 15, 2020, Avicanna announced that during Q4 2019 it began generating revenue for two major business lines, including a CBD-based derma-cosmetic product line and the launch of Aureus B-B brand of raw material cannabinoids (API). The Company added that during 2019 it recognized revenue of $168,252 and an additional $3.3 million in deferred revenue from the licensing of certain intellectual property.
- One-Month Return: 73%
Fire & Flower Holdings Corp. (TSX:FAF) – $0.58
Fire & Flower currently has 48 operating or licensed stores selling cannabis in Alberta, Saskatchewan, Manitoba, the Yukon, and Ontario, with a wholesale distribution division called Open Fields Distribution. Last July, Fire and Flower announced that it had entered into a subscription agreement with Alimentation Couche-Tard Inc. The sub agreement allows for Couche-Tard to provide Fire & Flower with an investment in aggregate of up to $380 million. FAF generated $34.3 million in revenue for the 39 weeks ended November 2, 2019. On April 15, 2020, Fire & Flower announced that its stores in Ottawa and Kingston will offer online ordering, payment and home delivery through the Spark Rapid Delivery service.
- One-Month Return: 45%
Ubika Research/SmallCapPower has received compensation from Avicanna to provide analyst research coverage. For full disclosure please visit here >>
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