The Canada-listed cannabis stocks we’ve identified have seen notable insider buying in the last three months
SmallCapPower | November 19, 2019: 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 officers, directors, and relatives. Since insider ownership and trading may cause changes in share prices, government bodies require companies to report this information, giving investors a sense of insider activity within a company. It is important to know which insiders to pay attention to, as insiders with proven track records should be watched more closely for the best insights into a company. The four Canada-listed cannabis stocks we have dug up today have experienced significant insider buying recently, which could be a good omen for its shareholders.
*Share price data as at November 15, 2019, data obtained from S&P Capital IQ
**Data on insider buying obtained from System for Electronic Disclosure by Insiders (SEDI)
4Front Ventures Corp. (CSE:FFNT) – $0.43
4Front Ventures is a MSO that owns, operates or manages six cultivation and production facilities and 11 retail facilities across eight states. FFNT has developed two >50,000 square-foot indoor cultivation facilities in Washington with yields of more than 300 g/sq. ft. In Washington, 4Front operates one of the largest cannabis product manufacturing facilities in the world, where it produces some of its top-selling brands of flower, edibles, and oil-based products. The Company is focused on premium indoor cultivation, extraction, manufacturing, and branding of flower, edible, and derivative products. 4Front has cultivation and processing licenses in Washington, Illinois, Michigan, California, Massachusetts, and Arizona, and now also has retail licenses in Illinois, Michigan, Massachusetts, Maryland, Pennsylvania, and Arizona. In September 2019, CEO Andrew Thut purchased 145,000 shares on the open-market at an average price of ~$0.60. Additionally, CFO Brad Kotansky purchased 105,000 open-market shares for ~$0.60/share.
- Market Cap: $227.5M
- 30-Day Return: -25.0%
- 90-Day Return: -49.4%
- 90-Day Average Trading Volume:156,530
Pure Global Cannabis Inc. (TSXV:PURE) – $0.12
Pure Global Cannabis is focused on cultivating and refining cannabis products for sale in the medicinal and recreational markets. Located in Brampton, Ontario, the Company utilizes hydroponic cultivation to generate industry-high yields. The Company’s PureSinse brand is strategically partnered with clinics and health-care professionals, which gives the Company a strong foothold to penetrate the Health and Wellness sector. On October 24, 2019, Pure Global announced that it had been awarded an amendment to its processing license, allowing its subsidiary, PureSinse, to sell extracts, topicals, and edibles to medical and legal adult consumer markets. This is a positive development for Pure Global, as the Company has submitted 20 SKUs to Health Canada, and it is expecting to begin selling its high-margin products towards the end of December 2019. On November 5, 2019, CEO Malay Panchal purchased 223,000 Company shares for $0.10/share, increasing his ownership to 26.1M shares, or 16.4%.
- Market Cap: $19.1M
- 30-Day Return: +0.0%
- 90-Day Return: +20.0%
- 90-Day Average Trading Volume: 359,260
Fire & Flower Holdings Corp. (TSX:FAF) – $0.78
Fire & Flower currently operates 33 stores selling cannabis throughout Canada, in Alberta, the Yukon, Saskatchewan, Manitoba, and Ontario. FAF also has a wholesale distribution division called Open Fields Distribution. On July 24, 2019, FAF announced that it had entered into a subscription agreement with Alimentation Couche-Tard Inc. The sub agreement allows for Couche-Tard to provide Fire & Flower with an investment in aggregate of up to $380M. The initial tranche of the agreement is a convertible debenture for a 9.9% ownership that converts at $1.07 per common share when Fire & Flower hits a milestone of 45 licensed stores operational by December 31, 2020. On October 7, 2019, Chief Operating Officer (COO) Trevor Fencott purchased 50,000 shares at an average cost of ~1.21/share.
- Market Cap: $97.6M
- 30-Day Return: -33.9%
- 90-Day Return: -43.3%
- 90-Day Average Trading Volume: 312,510
GTEC Holdings Ltd. (TSXV:GTEC) – $0.19
GTEC Holdings is a cannabis company from Kelowna, British Columbia that identifies and consolidates craft cannabis producers within the industry. Currently, the Company owns six assets spanning three provinces, including: Alberta Craft Cannabis, Greentec Bio-Pharmaceuticals Corp, Tumbleweed Farms, Falcon Ridge Farms, Grey Bruce Farms, and Zen Labs. Following expansion plans of these assets, the Company will have estimated yearly cannabis production of 50,000 kg by 2020. Co-founder and Vice President Michael Brady bought 25,000 Company shares in October for $0.21/share and 25,000 shares in November for $0.18/share.
- Market Cap: $24.1M
- 30-Day Return: -28.0%
- 90-Day Return: -42.9%
- 90-Day Average Trading Volume: 163,270
4Front Ventures Corp. (formerly Cannex Capital Holdings) is a featured sponsored company and has paid SmallCapPower.com a fee for coverage. To learn more, see our full disclosure HERE >>
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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