Best and Worst Performing Recent Canadian Cannabis IPOs

The five Canadian cannabis IPOs we’ve identified have the highest/lowest returns since their IPO closing price

SmallCapPower | August 14, 2018: As an industry, legal cannabis is still in the early stage of development. As a result, the market is seeing a lot of emerging companies trying to solidify their share of this fast-expanding market. Since May 2018 alone, there have been more than 10 cannabis-related IPOs. On our list today, we have included the best and worst performing Canadian cannabis IPOs since May 2018. For reference, these returns are calculated from the closing price of the first day of trading.

Green Organic Dutchman Holdings Ltd. (TSX:TGOD) – $5.41
Cannabis

Green Organic Dutchman Holdings went public on May 2, 2018 and is a Canada-based cannabis producer with operations in Ontario and Quebec. The Company’s facilities are under construction but have already received ACMPR cultivation and sales licenses. TGOD aims to be the lowest-cost producer in Canada by accessing the lowest power rates in Ontario and Quebec. The combined production capacity of the two facilities totaling 970,000 sq. ft. is expected to be 116,000 kg of cannabis. TGOD’s management team has ample experience in consumer-packaged goods, which will likely be advantageous following legalization. The Company also has a large catalogue of licensing agreements for cannabis-infused food and beverage products. Compared to its peers, TGOD has a large cash reserve that it is using for facility construction and its many R&D projects.

  • Market Cap: $1,239.3 Million
  • Return Since IPO: 36.0%
  • 1 Week Total Return: -2%

Tilray Inc. (NASDAQ:TLRY) – $26.67
Cannabis

Tilray went public on July 19, 2018 and is the first Canadian cannabis producer to IPO on the NASDAQ stock exchange. Tilray is a medical cannabis cultivator, processor and distributor operating since 2014. In Q1/2018, the Company produced 1,700 kg of cannabis and sold 1,300 kg, resulting in revenues of ~ C$8M. The Company exports to eight countries located in Europe, South America, Africa and Australia and in the near future intends to add Ireland and Brazil to the list.

  • Market Cap: $2,450.0 Million
  • Return Since IPO: 15.0%
  • 1 Week Total Return: 7%

James E Wagner Cultivation Corp. (TSXV:JWCA) – $0.68
Cannabis

James E Wagner Cultivation Corp went public on June 11, 2018 and is a Canada-based ACMPR licensed medical cannabis producer. The Company currently operates a 15,000 sq. ft. facility in Kitchener, Ontario and is proceeding with its expansion of the second production facility. The expansion of 345,000 sq. ft. in the second facility is anticipated to be complete in Q1/2019. The Company has a strategic partnership with Canopy Growth Corporation, providing it with access to Canopy’s operational, marketing and sales infrastructure.

  • Market Cap: $59.6 Million
  • Return Since IPO: -42.0%
  • 1 Week Total Return: -3%

Inner Spirit Holdings Ltd. (CSE:ISH) – $0.24
Retail

Inner Spirit Holdings went public on the CSE on July 30, 2018. Inner Spirit is a Canadian franchise business that intends to specialize on the retail side of the recreational cannabis market. The Company is establishing a chain of dispensaries throughout Canada under its Spiritleaf brand, and it already has over a 100 franchise locations granted in Western Canada. In Alberta and British Colombia, Inner Spirit holds the maximum number of retail licenses a business can obtain. In Saskatchewan, the Company has been selected as the cannabis retailer for Moose Jaw, the fourth-largest city in the province. Additionally, it plans to use Shopify as its e-commerce retail outlet.

  • Market Cap: $41.8 Million
  • Return Since IPO: -35.0%
  • 1 Week Total Return: -24%

48North Cannabis Corp. (TSXV:NRTH) – $0.66
Cannabis

48North Cannabis went public on the TSX-V on June 11, 2018. NRTH is a vertically-integrated ACMPR licensed producer with operations in Kirkland, Ontario. The Company’s current cultivation facility is 40,000 sq. ft. with annual production capacity of 2,500 kg. NRTH is preparing for its two-phase expansion plan, which will add 200,000 sq. ft. to the cultivation facility and additional 40,000kg of cannabis to annual production capacity. The Company is in the process of acquiring a license to produce and sell cannabis oil, in addition to receiving a GMP certification, allowing for export of cannabis.

  • Market Cap: $54.6 Million
  • Return Since IPO: -27.0%
  • 1 Week Total Return: -2%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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