The Canadian cannabis stocks we’ve weeded out have the greatest number of shares held short in the cannabis space from the period of January 15, 2020 to January 31, 2020
SmallCapPower | February 10, 2020: As we head into Cannabis 2.0 as well as the first cannabis earnings season of 2020, downward pressure lingers on cannabis stocks. 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. Aurora also provide revenue guidance that indicated a decline in cannabis revenue for a third quarter in a row and $1B in asset write downs. As such, short interest remains elevated in the cannabis space. Today we have sifted through the recent IIROC Short Report and found the four most-shorted Canadian cannabis stocks.
*Share prices as at February 6, 2020, data obtained from S&P Capital IQ
Aurora Cannabis Inc. (TSX:ACB) – $2.67
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 its 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: $3,113.2M
- YTD-Return: -18.3%
- 90-Day Return: -54.7%
- 30-Day Average Trading Volume: 8,982,300
- Shares Held Short: 17,516,684
- Short Interest Ratio: 2.0x
The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) – $0.67
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: $209.5M
- YTD-Return: -12.0%
- 90-Day Return: -36.9%
- 30-Day Average Trading Volume: 2,199,320
- Shares Held Short: 16,015,247
- Short Interest Ratio: 7.3x
HEXO Corp. (TSX:HEXO) – $1.75
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: $497.2M
- YTD-Return: -15.9%
- 90-Day Return: -45.5%
- 30-Day Average Trading Volume: 3,152,090
- Shares Held Short: 10,642,302
- Short Interest Ratio: 3.4x
The Supreme Cannabis Company, Inc. (TSX:FIRE) – $0.49
The Supreme Cannabis Company is based in Canada and focuses on selling to the wholesale sector for the medical cannabis market in Canada. Through its subsidiary, 7ACRES, the Company operates a 440,000 sq.ft cultivation facility outside of Toronto. The Company’s portfolio also includes: 1) Blissco Cannabis Corp, a premium cultivator in British Columbia; 2) Truverra Inc., a global medicinal cannabis brand and licensed cultivator; 3) Cambium Plant Sciences, a plant genetics and cultivation company; 4) Medigrow Lesotho, an southern Africa-based cannabis oil producer; 5) Supreme Heights, an investment platform that works on CBD brands in the UK and; 6) a brand partnership and licensing deal with Khalifa Kush Enterprises Canada.
- Market Cap: $171.9M
- YTD-Return: -25.4%
- 90-Day Return: -47.7%
- 30-Day Average Trading Volume: 1,121,630
- Shares Held Short: 9,364,982
- Short Interest Ratio: 8.3x
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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