The Canadian cannabis stocks we’ve weeded out have recovered the most since recent December lows and could be poised to go even higher following the legalization of Cannabis 2.0
SmallCapPower | January 23, 2020: The Horizons Marijuana Life Sciences Index ETF (HMMJ) has rallied ~18% since its most recent low on December 14, 2019. After a rocky year for cannabis stocks, some names could have the potential to rebound in 2020. With edibles now available across Canada, investors will be looking to see if Cannabis 2.0 can add much-needed topline growth to the Canadian cultivators. In the U.S., recreational legalization is expected to be a ballet issue in New York and Florida this year, which could reignite interest in the U.S. multi-state operators. That being said, the cannabis industry is not going away and as cannabis regulations are expected to loosen in the United States, and globally, some cannabis companies could be set to rally in 2020. Today we have identified four Canadian cannabis stocks that have rallied the most over the past month.
*Share price data as at January 21, 2020, data obtained from S&P Capital IQ
The Valens Company (TSXV:VLNS) – $3.88
Pure-play Cannabis Extraction
The Valens Company is a pure-play cannabis extraction company with 425,000 kg of extraction capacity. Valens has signed extraction agreements with Organigram, Tilray, Canopy Growth, and HEXO Corp. Valens also has a strategic partnership with ThermoFisher Scientific, one of the world’s leading manufacturers of lab equipment, in addition to an ISO 17025 labs accreditation, which allows the Company to conduct standardized testing for over 400 different metals, pesticides, terpenes, residual solvents, microbials, and cannabinoid profiles.
VIVO Cannabis Inc. (TSXV:VIVO) – $0.365
VIVO Cannabis, formerly Abcann global, manufactures and distributes medical and recreational cannabis. The Company gained its production and sales license from Health Canada in April 2018. VIVO’s capacity estimates for 2019 include 1,500 kg of indoor cannabis with an additional 14,000 kg grown in greenhouse facilities. To increase supply and distribution, the Company entered into agreements relating to strategic equity investments in Canadian cannabis retailers National Access Cannabis Corp., Choom Holdings Inc, and Westleaf Cannabis Inc, all of which either have operations within Ontario or have plans on operating in Ontario. On December 20, 2019, VIVO announced its Cannabis 2.0 products, which include: vapes, chocolates, and concentrates that include kief, rosin, bubble hash, wax and shatter.
Nextleaf Solutions Ltd. (CSE:OILS) – $0.38
Pure-play Cannabis Extraction
Nextleaf Solutions is a licensed extraction technology company that has created a portfolio of issued and pending patents that relate to the Company’s industrial-scale process of generating purified cannabinoid distillate, which is a cannabis concentrate that is used in value-added products. Nextleaf has a portfolio of eight issued patents and over 35 pending patents pertaining to the production of high-purity, cannabinoid rich distillate, the key ingredient used in the manufacturing of standardized THC and CBD-infused products. In December 2019, Nextleaf announced it had received its 11th patent, taken delivery of its extraction equipment, signed a licensing agreement with a beverage manufacturer, and has begun commercial B2B production.
Sundial Growers Inc. (NASDAQ:SNDL) – US$3.35
Sundial Growers is a Canadian cannabis cultivator that aims to target the Canadian cannabis market through three distinct brands: Heal, Help, and Play. The Heal brand is the Company’s medical cannabis line to be used as prescription medicine; 2) The Help brand is the Company’s line of CBD products; and 3) Play is the Company’s adult-use line intended to enhance social, spiritual, and recreational occasions. Sundial has cultivation in Alberta, British Columbia, and the United Kingdom. Currently, Sundial Growers has 242,000 sq. ft, comprising of 12 cloning and vegetation rooms, and 74 revenue-generating flowering rooms. The modular cultivation rooms are expected to bring premium yields, as well as quality and consistency of product. Once fully constructed, Sundial’s Olds Facility will be approximately 480,000 sq. ft with 126 modular cultivation rooms.
- Market Cap: US$356.1M
- YTD-Return: +14.3%
- 30-Day Return: +45.1%
- 90-Day Average Trading Volume: 1,123,700
Ubika Research/SmallCapPower has received compensation from Nextleaf Solutions Ltd. to provide analyst research coverage. For full disclosure please visit here >>
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