The Canadian marijuana stocks we’ve dug up have made substantial investments in R&D, which should help these companies evolve with the industry
SmallCapPower | July 19, 2019: Medical cannabis usage is a controversial topic in the medical community, with many unsure about the harm and/or benefit provided by the drug. Cannabis companies that have noted this concern and have made steps towards clinical trials and other research and development initiatives have gained an advantage in the cannabis industry. Today we have discovered four Canadian marijuana stocks that have made significant investments in research and development, which should help these companies evolve with the industry.
*Share prices as at close July 18, 2019, data obtained from S&P Capital IQ
Avicanna Inc. (TSX:AVCN) – $6.23
Avicanna is a vertically-integrated cannabis company that operates in North America and Colombia. Its assets are in Santa Marta, Colombia, which is ~1,500 km from the Equator, providing optimal growing conditions with 12 hours of sunlight and darkness year-round. This allows for four harvests a year without artificial light. Both assets have a current Phase 1 combined capacity of roughly 400,000 sq. ft, expected to increase in Phase 2 to 2.5M sq. ft by the end of 2020. The Company has four verticals of cannabinoid-based offerings that include: 1) pharmaceuticals, 2) phyto-therapeutics, 3) CBD Derma-cosmetics and 4) cannabis extracts/purified cannabinoids. Avicanna has an advanced cannabinoid research and development team that have conducted over three years of R&D and intellectual property development for extraction, formulation development, plant biology and pre-clinical analysis. Currently, the Company is in collaboration with the University of Toronto, University Health Network, the Hospital of Sick Children, The University of West Indies and the University of Antioquia. The purpose of these collaborations is to focus on oncology, pain, dermatology, neurology, GI and psychiatry. Avicanna Inc. commenced trading on TSX on July 18, 2019. View the Company’s corporate website for more information.
- Market Cap: $136.4 Million
- YTD Return: N/A
- Budgeted R&D Spending Over the Next 12 Months: $1.3 Million
- 90-Day Average Daily Volume (1,000s): N/A
Aleafia Health Inc. (TSX:ALEF) – $1.15
Aleafia Health is a vertically-integrated cannabis health and wellness company. Currently, the Company operates in four major business segments: 1) Cannabis Cultivation & Products; 2) Health & Wellness Clinics; 3) Cannabis Education and; 4) Consumer Experience with eCommerce. Operations are conducted from three cultivation facilities owned by the Company, which are comprised of: 1) Port Perry Facility, which is an indoor grow that is licensed and fully operational; 2) the Niagara Facility, which is a greenhouse in a plant-ready state that is waiting for a Health Canada cultivation license; and 3) the Paris Facility, which is a 25,000 sq. ft facility that is federally licensed for cultivation, processing and sale of medical and recreational cannabis. On July 15, 2019, the Company announced it secured a Health Canada licence amendment to increase its outdoor cultivation area at Port Perry from 292,000 sq.ft to over 1.1M sq.ft. Currently, the Company serves 60,000 medical patients. The Company announced the results from its 4,000 medical cannabis patient study on March 18, 2019, which observed employment and disability status among patients that use medical cannabis. This showed a slight net improvement in employment after starting medical cannabis treatments. Additionally, the Company announced results on January 25, 2019, which showed that 45% of patients stop using benzodiazepine after trying the medical cannabis treatment. Benzodiazepine is used for sedatives and anti-anxiety medications. As well, the Company has partnered with Aleafia Cronos Group to conduct medical cannabis sleep study. View Aleafia Health’s corporate website for more information.
- Market Cap: $327.0 Million
- YTD Return: -17.5%
- Capital Spent on R&D: $0.64 Million (Q1/19)
- 90-Day Average Daily Volume (1,000s): 1,265
Tetra Bio-Pharma Inc. (TSXV:TBP) – $0.26
Tetra Bio-Pharma is a biopharmaceutical company that focuses on cannabinoid-based drug discovery and development. The Company has a Health Canada approved and FDA reviewed clinical program that focuses on bringing new prescription drugs and treatments to patients and healthcare providers. The Company’s subsidiary Tetra Natural Health works on developing and selling natural health, self-care and hemp energy drink products. Currently, the Company is conducting clinical trials of PPP001, a smokable, natural medical cannabis that is designed to help treat chronic pain in cancer patients. On June 17, 2019, the Company announced it has conducted a Type B meeting the U.S. Food and Drug Administration for its noncontrolled cannabinoid drug product PPP003, which is expected to be used to treat painful dry eyes. The meeting was used to confirm Phase 2 of the study and quality and toxicology requirements. View Tetra Bio-Pharma’s corporate website for more information.
- Market Cap: $55.1 Million
- YTD Return: -67.7%
- Capital Spent on R&D: $1.6 Million (Q1/19)
- 90-Day Average Daily Volume (1,000s): 831
Aurora Cannabis Inc. (TSX:ACB) – $9.05
Aurora Cannabis is a licensed producer and distributor of medical cannabis products. The Company has a funded production capacity of over 625,000kg/year. Aurora utilizes 15 global production facilities, three of which are EU GMP certified. Additionally, the Company is vertically integrated and horizontally diversified across a variety of cannabis value chain segments. On May 21, 2019, Aurora announced its exclusive multi-year global partnership with UFC. This partnership is predicated to advance clinical research on the relationship between 100% hemp derived Cannabidiol products and athlete wellness and recovery. On June 7, 2019, the Company announced it is spending $1.5M to upgrade its research and development capabilities at its Saskatoon centre. View Aurora’s corporate website for more information.
- Market Cap: $9,843.1 Million
- YTD Return: 37.6%
- Capital Spent on R&D: $3.5 Million (FQ3/19)
- 90-Day Average Daily Volume (1,000s): 4,960
Ubika Research/SmallCapPower has received compensation from Avicanna and Aleafia Health to provide analyst research coverage. For full disclosure please visit here >>
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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