With industry consolidation expected to continue, speculators might want to keep an eye on the Canadian marijuana takeover targets on our list
SmallCapPower | February 21, 2017: Canopy Growth Corp. (TSX: WEED) has become the world’s largest cannabis company, with a market cap of over $1B, after acquiring Mettrum Health Corp. This merger may lead to more industry consolidation, as Canada’s cannabis market continues to bud. Canopy Growth set the price and precedent for cannabis buy-outs with its 42%+ premium for Mettrum, which has caught the attention of investors in search of the next junior marijuana stock ripe for acquisition. Today, we have identified five Canadian marijuana takeover targets based upon their high revenue growth profiles.
Aphria Inc. (TSXV: APH) – $6.51
Aphria Inc., formerly Black Sparrow Capital Corp., is a Canada-based company, which is engaged in producing and selling medical marijuana through retail sales and wholesale channels. The Company’s retail sales are sold primarily through the Company’s online store, as well as telephone orders. Its wholesale shipments are sold to other Medical Purposes Regulations (MMPR) Licensed Producers. It offers medical cannabis of various strains, including Kusawa, Tamaracouta, Panache, Churchill and Iroquois. The Company is also engaged in the research and development, and commercial production of cannabis oil.
- Market Cap: $731 million
- Revenue (FY0, CAD): $8,433,930
- Expected Revenue (FY1, CAD): $20,569,830
- Revenue Growth (Y/Y): 143.9%
Aurora Cannabis Inc. (TSXV: ACB) – $2.60
Aurora Cannabis Inc. is engaged in the production and sale of medical cannabis. The Company’s product types include Tetrahydrocannabinol (THC), Cannabidiole (CBD), indica, sativa and hybrid. Its product range includes BLACK TUSK 2, CHESTER, KAINE and TOWER. The THC product is responsible for the felt from cannabis and is connected to the immune system regulating, anti-inflammatory and pain relieving properties of medical marijuana.
- Market Cap: $786 million
- Revenue (FY0, CAD): $1,439,270
- Expected Revenue (FY1, CAD): $32,291,000
- Revenue Growth (Y/Y): 2,143.6%
CanniMed Therapeutics Inc. (TSX: CMED) – $11.95
CanniMed Therapeutics Inc is a Canada-based plant biopharmaceutical company that specializes in the production of pharmaceutical-grade cannabis and offers a range of pharmaceutical-grade cannabis products. In addition, the Company has a plant biotechnology research and product development program focused on the production of plant-based materials for pharmaceutical, agricultural and environmental applications. The Company, through its subsidiary CanniMed Ltd, offers medical cannabis oils, dried medical cannabis, vaporizers, vaporizer parts and accessories.
- Market Cap: $246 million
- Revenue (FY0, CAD): $5,788,000
- Expected Revenue (FY1, CAD): $19,834,000
- Revenue Growth (Y/Y): 242.7%
OrganiGram Holdings Inc. (TSXV: OGI) – $2.72
OrganiGram Holdings Inc., formerly Inform Exploration Corp., is a Canada-based company, which operates through its subsidiary Organigram Inc. Organigram Inc. is a licensed medical marijuana producer as regulated by Health Canada under the Marihuana Medical Access Regulations (MMAR) of the Government of Canada.
- Market Cap: $274 million
- Revenue (FY0, CAD)): $6,127,630
- Expected Revenue (FY1, CAD): $12,743,800
- Revenue Growth (Y/Y): 108.0%
Supreme Pharmaceuticals Inc. (CSE: SL) – $1.80
Supreme Pharmaceuticals Inc. is a Canada-based development-stage company focused on developing businesses in the cannabis market, with a specific focus on the wholesale sector of the medical cannabis market in Canada. The Company operates an approximately 342,000 square foot greenhouse facility located in Kincardine, Ontario.
- Market Cap: $278 million
- Revenue (FY0, CAD): $0
- Expected Revenue (FY1, CAD): $3,245,000
- Revenue Growth (Y/Y): n/a