The Canada-listed cannabis stocks we’ve identified are bucking the trend and have had positive year-to-date returns
SmallCapPower | October 10, 2019: Cannabis stocks having been facing some headwinds recently. The Horizons Marijuana Life Sciences Index (TSX:HMMJ) is down 51% since its most recent high of $23.65 on March 19, 2019. Adding to the selling pressure has been a slew negative sector news, including: the vaping epidemic, issues opening additional retail stores in Ontario, the resignation of HEXO’s CFO, the cancellation of Aphria’s five-year supply deal for 175,000 kg of cannabis with Aleafia, and the termination of the MedMen/PharmaCann merger. However, amongst the turmoil, some cannabis companies have been going against the trend and have seen positive returns recently. Today we have weeded out four Canada-listed cannabis stocks that have seen significant price appreciation during the past week.
*Share price data as at October 8, 2019, data obtained from S&P Capital IQ
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Avicanna Inc. (TSX:AVCN) – $3.45
Cannabis
Avicanna is a biopharmaceutical company focused on the research, development, manufacturing and commercialization of plant-derived, cannabinoid-based products. The Company has four main product offerings. These include:
- Cannabinoid-based Pharmaceuticals with several products in various stages of pre-clinical and clinical development.
- A Phyto-therapeutic product line designed for medical use in a range of formats, such as transdermal patches, topicals, tablets, sublingual sprays and oil tinctures (expected to launch during Q1/20).
- A Derma-cosmetics product line, which is formulated to maintain the health and beauty of the skin and includes anti-aging and skin moisturizers (expected to launch by the end Q4/20).
- Cannabis Extracts and Purified Cannabinoids: Large-scale, low-cost, organic, and sustainable source of THC/CBD-based cannabis extracts/purified cannabinoids for B2B, medical, cosmetic and pharmaceutical companies.
Avicanna has two cultivation assets in Santa Marta, Colombia with a current capacity of ~290,000 sq. ft, which is expected to increase to 410,000 sq. ft by the end of 2019.
- Market Cap: $76.9M
- 5-Day Return: +44.8%
- 30-Day Return: -25.5%
- 30-Day Average Trading Volume: 145,990
Green Growth Brands Inc. (CSE:GGB) – $1.66
Cannabis
Green Growth Brands runs a vertically-integrated cannabis facility that is located in Las Vegas, Nevada. Green Growth distributes products through mall-based shops, partnerships with traditional retailers and e-commerce platforms. Currently, the Company has had successful retail strategies with large specialty retail companies, such as Bath & Body Works, Designers Shoe Warehouse and L Brands. These partnerships will be used in the creation of products for the Company’s Seventh Sense branded retail stores. On July 11, 2019, Green Growth Brands signed an agreement with American Eagle to sell CBD-Infused Personal Care Products in ~500 American Eagle store and online. This follows an announcement from July 11, 2019, when GGB announced its seventh sense products would be carried in ~160 Abercrombie & Fitch stores. On August 8, 2019, the Company announced that it had opened its 100th Seventh Sense Botanical Therapy mall-based retail shop. GGB also recently closed a ~$50.3M bought-deal financing, which will be used to fund acquisitions, capex, and general corporate purposes.
- Market Cap: $342.2M
- 5-Day Return: +30.8%
- 30-Day Return: -7.6%
- 30-Day Average Trading Volume: 384,170
Sunniva Inc. (CSE:SNN) – $1.29
Cannabis
Sunniva is a vertically-integrated cannabis company that supplies products and services to Canada and California. The California cultivation facility is a cGMP designed glasshouse situated on a 20-acre piece of land with a 30-year lease agreement. Construction is in progress, and production is expected to begin late Q3/19, with 325,000 sq. ft that will have 50,000 kg/year of flower capacity. The Company has a fully-licensed facility for volatile and non-volatile operations that has a production capacity of 180 kg/month of distillate and 15 kg/month of live resin extraction. The Company is also planning on launching a premium brand, which is expected to offer high-quality distillate, concentrates, pre-rolls, edibles and beverage product lines. On August 29, 2019, the Company announced Q2/19 financial results, highlighted by revenue of $5.3M. The Company also announced its acquisition of two licenced cannabis companies to grow its packaging and distribution capabilities in California. This will add 6,662 sq. ft of property in Coachella, CA.
- Market Cap: $54.4M
- 5-Day Return: +21.2%
- 30-Day Return: +1.5%
- 30-Day Average Trading Volume: 90,120
Ovation Science Inc. (CSE:OVAT) – $0.29
Cannabis
Ovation Science is a skincare research and development company that provides pharmaceutical-grade topical and transdermal cannabis products for the medical, recreational and beauty global markets. Leveraging its patented Invisicare® technology, Ovation develops industry-leading transdermal and topical cannabis products using a licensing/royalty business model along with marketing its own CBD product lines. The Company’s proprietary Invisicare® technology has a 4-10 times higher transdermal absorption rate of CBD/THC compared to other products tested. Ovation Science Inc. (CSE:OVAT) announced plans to launch Invibe MD, a line of CBD wellness skincare products addressing topical skin issues, sore muscles, and sleep issues with the tagline “Better with CBD,” as well as the planned launch of ARLO CBD Beauty, its anti-aging skincare line infused with CBD. Both lines, Invibe MD and ARLO CBD Beauty, will be manufactured using the Company’s patented Invisicare® delivery system. The products are expected to reach store shelfs during CYQ3/19.
- Market Cap: $6.7M
- 5-Day Return: +16.0%
- 30-Day Return: +1.8%
- 30-Day Average Trading Volume: 13,500
Ubika Research/SmallCapPower has received compensation from Avicanna and Ovation Science 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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