The Canada-listed cannabis stocks we’ve identified have seen notable insider buying during the last three months
SmallCapPower | January 13, 2020: Insiders are defined as any person with access to key company information before it is released to the public, or someone who owns more than 10% of a company’s shares. Insiders include individuals such as management, officers, and directors. Government bodies require companies to report this information, in a timely manner, giving investors a sense of insider activity within a company. Insider buying when a company is in a bear market shows management’s confidence in the company overcoming the downturn. The four Canada-listed cannabis stocks we have picked out today have experienced insider buying recently.
*Share price data as at January 9, 2019, data obtained from S&P Capital IQ
Nextleaf Solutions Ltd. (CSE:OILS) – $0.38
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, and has begun commercial B2B production.
- Market Cap: $41.1M
- 30-Day Return: +27.1%
- 90-Day Return: -1.3%
- 90-Day Average Trading Volume: 233,870
- Recent Insider Buying Activity: CFO bought 6,500 shares in January and 8,000 shares in December
Trulieve Cannabis Corp. (CSE:TRUL) – $13.17
Trulieve is a seed-to-sale operation in the state of Florida, with plans to acquire additional facilities in Massachusetts, California, and Connecticut. The Company claims to be the largest, fully-licensed medical cannabis company in the State of Florida, with over 1.6M sq. ft of cultivation space yielding ~55,000 kg annually. Trulieve is in the process of constructing an additional 72,000 sq. ft, which would increase production capacity by 10,000kg. TRUL also has a network of 37 dispensaries selling branded products, with a total of 240 stock keeping units (SKUs) and over 203,600 patients as of August 31, 2019. Trulieve is anticipating having 44 dispensaries open by year end. Trulieve presently has ~50% market share in Florida and is currently the only MSO that has positive cash flow from operations.
- Market Cap: $1,453.3M
- 30-Day Return: -16.0%
- 90-Day Return: 3.7%
- 90-Day Average Trading Volume: 314,680
- Insider Buying Activity: CEO bought 15,000 shares in December
Sundial Growers Inc. (NasdaqGS:SNDL) – US$3.00
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$318.9M
- 30-Day Return: +34.1%
- 90-Day Return: -34.5%
- 90-Day Average Trading Volume: 882,240
- Insider Buying Activity: Director bought 10,000 shares in November
Aurora Cannabis Inc. (TSX:ACB) – $2.42
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 November 14, ACB reported Q1/20 financial results, highlighted by an adjusted EBITDA loss of $39.7M on revenue of $75.3M, both of which missed analyst’s estimates of an adj. EBITDA loss of ~$22M and revenue of ~$91M.
- Market Cap: $2,542.3M
- 30-Day Return: -30.7%
- 90-Day Return: -54.1%
- 90-Day Average Trading Volume: 9,357,240
- Insider Buying Activity: CEO bough 70,000 shares in January
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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