4 Canadian Cannabis Stocks with Significant Short Positions

The Canadian cannabis stocks we’ve weeded out have the greatest number of shares held short in the cannabis space from the period of February 1, 2020 to February 15, 2020

SmallCapPower | March 5, 2020: As we head into Cannabis 2.0 as well as the first cannabis earnings season of 2020, downward pressure continues lingers on cannabis stocks amongst a broader market sell-off last week. Weakness in the sector continues due to a slew of C-Suit layoffs at cannabis companies including Supreme, Sundial Growers, MedMen, and most recently Aurora Cannabis. Tilray reported disappointing financial results on Monday, which showed a decrease in revenue over the previous quarter. Today we have dug into the recent IIROC Short Report and found the four most-shorted Canadian cannabis stocks.

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*Share prices as at February 6, 2020, data obtained from S&P Capital IQ

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Aurora Cannabis Inc. (TSX:ACB) – $1.77

Aurora Cannabis is a vertically-integrated and horizontally-diversified cannabis company that is located in Edmonton, Alberta. Currently, the Company has a funded capacity that exceeds 625,000kg per year. Aurora Cannabis has sales operations in 25 countries across five continents. The Company has 15 global production facilities with 3 EU GMP certified, 40 clinical studies running or completed and over 77,000 medical patients served. On February 6, Aurora announced that CEO Terry Booth would be replaced by Michael Singer and that the Company would be cutting 500 jobs in a restructuring effort to reduce operating expenses.

  • Market Cap: $2,069.1M
  • 7-Day Return: -10.0%
  • 90-Day Return: -43.9%
  • 30-Day Average Trading Volume: 13,506,773
  • Shares Held Short: 19,279,252
  • Short Interest Ratio: 1.4x

The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) – $0.46

The Green Organic Dutchman Holdings is a Canada-based cannabis producer with operations spanning from Ontario to Quebec. TGOD has already received the ACMPR cultivation and sales license but its two facilities are currently under construction. The combined production capacity of the two fully-funded facilities totals 1,643,600 sq. ft. and is expected to yield 219,000 kg of cannabis flower annually.

  • Market Cap: $143.9M
  • 7-Day Return:  -11.1%
  • 90-Day Return: -42.9%
  • 30-Day Average Trading Volume: 4,066,733
  • Shares Held Short: 17,766,090
  • Short Interest Ratio: 4.4x

HEXO Corp. (TSX:HEXO) – $1.51

Headquartered in Gatineau, Quebec, HEXO is a consumer-packaged goods (CPG) cannabis company that manufactures and distributes products in the Canadian market. HEXO specializes in medical cannabis and aims to become the highest-quality producer and distributor of medical cannabis products throughout Europe. The Company is one of the largest licensed cannabis companies in Canada. HEXO operates 1.8M sq. ft of production facilities in Ontario and Quebec, yielding 150,000 kg annually. BNN Bloomberg reported recently that HEXO was the counterparty in Medipharm Labs’ $9.8M lawsuit.

  • Market Cap: $429.0M
  • 7-Day Return: -6.0%
  • 90-Day Return: -41.6%
  • 30-Day Average Trading Volume: 4,333,483
  • Shares Held Short: 11,801,620
  • Short Interest Ratio: 2.7x

CannTrust Holdings Inc. (TSX:TRST) – $0.87

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.

  • Market Cap: $123.1M
  • 7-Day Return: -13.1%
  • 90-Day Return: -16.5%
  • 30-Day Average Trading Volume: 731,892
  • Shares Held Short: 4,502,769
  • Short Interest Ratio: 6.2x

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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