The Canadian marijuana stocks on our list have a low EV/Sales multiple relative to other stocks in the same sector
SmallCapPower | September 29, 2017: Following the Ontario Government’s decision to sell marijuana at LCBO stores beginning in July 2018, stock prices in the marijuana sector have, for the most part, rebounded. Today, we have identified three Canadian marijuana stocks that are not yet subject to the incredible valuations seen within the industry.
Golden Leaf Holdings Ltd (CSE: GLH) – $0.19
Pharmaceuticals
Golden Leaf Holdings Ltd (GLH) is a Canada-based cannabis oil and solution provider in North America. The Company produces and distributes various types of products, such as cannabis flower and cannabis oils. The Company owns a dispensary through its subsidiary, Left Coast Connections. GLH operates cultivation business through its subsidiary, Greenpoint Oregon, Inc. (GPO). GPO uses over two separate extraction methods for extracting cannabis oil, such as carbon dioxide (CO2) extraction and hydrocarbon extraction. Using CO2 as an extraction solvent, GLH focuses on the extraction process, leaving behind various properties, such as chlorophyll, lipids, waxes and fats from the plant.
- Market Cap: $70 million
- YTD Price PCT Change: – 46.5%
- Revenues: $10.2 million
- Enterprise Value to Sales: 9.84x
CanniMed Therapeutics Inc. (TSX: CMED) – $9.54
Pharmaceuticals
CanniMed Therapeutics Inc is a Canada-based plant biopharmaceutical company. It specializes in the production of pharmaceutical-grade cannabis and offers a range of pharmaceutical-grade cannabis products. In addition, the Company has a plant biotechnology research and product development program focused on the production of plant-based materials for pharmaceutical, agricultural and environmental applications. The Company, through its subsidiary CanniMed Ltd, offers medical cannabis oils, dried medical cannabis, vaporizers, vaporizer parts and accessories. Its CanniMed Oils are made using only dried cannabis flowers.
- Market Cap: $219 million
- YTD Price PCT Change: -11.3%
- Revenues: $9.8 million
- Enterprise Value to Sales: 11.71x
MedReleaf Corp (TSX: LEAF) – $9.23
Pharmaceuticals
Publicly listed in June 2017, MedReleaf Corp is a Canada-based company that operates as a licensed producer of cannabis-based pharmaceutical products. The Company produces and sells its dried cannabis and cannabis oil products, including cannabis oil capsules. MedReleaf produces an aggregate of up to 6,000 kilograms of dried cannabis and up to 1,760 kilograms of cannabis oil, and to sell and distribute within Canada. The Company is an analytically-driven organization focused on patient care, scientific innovation, and advancing the understanding of the therapeutic benefits of cannabis.
- Market Cap: $843 million
- Revenues: $40 million
- Enterprise Value to Sales: 18.04x
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in any of the companies mentioned above.
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