The Canada-listed cannabis stocks we’ve weeded out are off to a good start in Europe, a market expected to be worth €123.0B by 2028
SmallCapPower | May 9, 2019: With a population size of 740 million people, Europe’s population dwarfs both Canada and the U.S combined. The sizable growth the cannabis industry has had over the past 12 months can be attributed to six countries that have announced medical cannabis legalizationSo far, over €500.0M has been invested in European cannabis businesses (Prohibition Partners, 2019). It is predicted that Europe over the next five years will be the largest legal cannabis market in the world and could be worth up to €123.0B by 2028. Today we have identified four Canada-listed cannabis stocks with promising operations in the European Union (EU).
*Share prices as at close May 7, 2019, data obtained from S&P Capital IQ
StillCanna Inc. (CSE:STIL) – $1.20
StillCanna is a Canada-based, early-stage life sciences company. The Company’s main focus is on cannabidiol extraction in Europe. Stillcanna has developed a method for extraction & distillation that can isolate pure CBD from hemp and/or marijuana oils. Currently, based on the intellectual property and proprietary process, the Company is predicted to achieve the distinction of being one of the lowest cost CBD extractors in Europe. StillCanna already signed an exclusive extracting contract with U.K.-based supplier of CBD, Dragonfly BioSciences LLC. On March 18, 2019, the Company acquired 24,000,000 of Olimax’s common shares and spent an additional $2.0M to acquire all issued and outstanding shares. This strategic acquisition is expected to provide StillCanna with a vertically-integrated license and a CBD production facility located in Poland.
- Market Cap: $70.6 Million
- YTD Return: -14.3%
- 30 Day Average Trading Volume: 166,000
- 90 Day Average Trading Volume: 229,000
ICC International Cannabis Corp. (CSE:WRLD.U) – US$0.26
ICC International Cannabis is a vertically-integrated cannabis company that focuses on planning, designing, building and operating high-quality, low-cost cannabis production, processing and distribution facilities. The Company has operations all across the world, but they are predominantly present in Europe. A few positions the Company holds in Europe are as follows: 1) a license to extract and manufacture CBD products in Poland; 2) manufacturing licences in Denmark and; 3) the license to be one of three companies to import medical cannabis into the U.K. On May 2, 2019, the Company signed a definitive agreement to acquire 49.9% of Wayland Group Corp’s international asset and license portfolio.
- Market Cap: US$62.0 Million
- YTD Return: 0.0%
- 30 Day Average Trading Volume: 929,000
- 90 Day Average Trading Volume: 1,002,000
Aleafia Health Inc. (TSX:ALEF) – $1.71
Aleafia Health is a medical cannabis cultivator. The Company currently owns three cultivation facilities and has completely funded the 138,000 kg capacity expected in 2019. The Company operates nationwide through medical cannabis clinics and innovative research. Aleafia currently has more than 50,000 recurring patients that visit their 22 operating clinics. The Company also announced on April 16, 2019, the expansion of their Paris, Ontario processing facility, which will add 50,000 kg to their current extraction capacity. The Company’s Outdoor Grow expansion was completed on April 30, 2019, which is expected to add 60,000 kg of dried flower annually at a cost per gram that is drastically lower than traditional greenhouse or indoor growing. This is expected to bring the Company’s total annual production capacity to 138,000 kg of dried flower and 50,000 kg of extraction capacity. On May 6, 2019, Aleafia Health announced its entrance into the German medical cannabis market through its joint venture (JV) with German pharmaceutical wholesaler Acnos Pharma Gmbh.
- Market Cap: $465.0 Million
- YTD Return: +21.3%
- 30 Day Average Trading Volume: 1,746,000
- 90 Day Average Trading Volume: 1,776,000
LGC Capital Ltd. (TSXV:LG) – $0.10
LGC is a Canada-based investment holdings company that focuses on acquiring production, brands and distribution in established and developing cannabis markets. LGC Capital already has a unique focus on international markets, which will provide an advantage in profiting from the growing international demand for cannabis. The main focus of the Company is on products with high-margin product offerings, such as edibles, concentrates, vapes and CBD-based products. The Company currently has a vertically-integrated cannabis supplier, Viridi Unit, which has 100,000 sq. ft in Switzerland. Additionally, the Company has entered into a letter of intent on March 2018, with Italian-based company Evolution BNK, which will allow LGC to convert it in certain circumstances into a 49% equity interest and offers an option to purchase a 5% royalty on net sales. Evolution BNK is a legal cannabis producer with 70,000 sq. ft greenhouse in Sanremo, Italy. Additionally, LGC Capital reported that is has closed the first portion of its previously-announced $10.4 M non-brokered private placement financing with Arlington Capital LP.
- Market Cap: $43.7 Million
- YTD Return: + 10.0%
- 30 Day Average Trading Volume: 1,632,000
- 90 Day Average Trading Volume: 1,059,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below: