The Canadian cannabis stocks on our list have shown strong 90-day returns when compared to their peers
SmallCapPower | August 14, 2019: Today we have found four Canadian cannabis stocks that have bucked the downward summer trend for cannabis stocks and have had 90-day returns above their peers. For reference, the stocks were chosen from a list of 97 companies that had an average 90-day return of -24.4%. For comparison, here are the 90-day returns of five of the big Canadian cannabis players: 1) Canopy Growth: -28%, 2) Aurora Cannabis: -26%, 3) Cronos Group: -12%, 4) HEXO: -35% and 5) Organigram Holdings: -27%.
*Share prices as at close August 12, 2019, data obtained from S&P Capital IQ
Gabriella’s Kitchen Inc. (CSE:GABY) – $0.36
Gabriella’s Kitchen is a consumer packaged goods company with operations focused in the U.S. The Company offers a variety of brands in the cannabis industry and in the mainstream grocery channel. From its subsidiaries, GABY holds several licenses and permits for manufacturing, distribution, cultivation and nurseries in California. The Company currently has relationships with 3,400 mainstream retail locations and it offers 6 brands in its portfolio. On July 25, 2019, the Company announced the signing of definitive documents to gain all the issued and outstanding membership interests of KJM Data and Research. This transaction will provide GABY with a 25,000 sq. ft California facility to help expand product development and production. For the transaction, GABY will acquire 80% of KJM shares for a purchase price of US$400,000, which includes rights to the remaining 20%, subject to certain licensing milestones. On July 22, 2019, GABY entered into a definitive agreement to acquire Lulu’s Chocolates, a California-based manufacturer of CBD and THC-infused chocolates, in exchange for US$1.1M in GABY common shares valued at $0.32 per share. Visit the Company’s corporate website for more information.
- Market Cap: $63.5 Million
- 90 Day Return: 22%
- 90 Day Average Daily Volume (1,000): 217
- 30 Day Average Daily Volume (1,000): 90
Village Farms International, Inc. (TSX:VFF) – $17.60
Village Farms International is a vertically-integrated greenhouse grower in North America. The Company use hydroponic growing methods in glass-enclosed facilities to grow its premium-quality products. Currently, the Company has six greenhouses that cover a total of 9.2M sq.ft. As well, the Company has entered into the cannabis space with its joint ventures (JV) with Emerald Health Therapeutics and Nature Crisp LLC to create “Pure Sunfarms Corporation” and “Village Fields Hemp USA LLC,” respectively. On August 12, 2019, the Company reported Q2/19 financial results, highlighted by increased sales of dried cannabis by 125% to $32.4M when compared to Q2/18. As well, the Company reported EBITDA of US$4.6M, which has increased by 454% when compare to the EBIDTA loss US$1.3M in Q2/18. Visit the Company’s corporate website for more information.
- Market Cap: $865.6 Million
- 90 Day Return: 4.2%
- 90 Day Average Daily Volume (1,000): 648
- 30 Day Average Daily Volume (1,000): 643
Auxly Cannabis Group Inc. (TSXV:XLY) – $0.92
Auxly Cannabis is a vertically-integrated cannabis company that has a variety of international operations. At first, Auxly was designed to be an investment company called Cannabis Wheaton Income Corp., which sought to finance cannabis producers across Canada in exchange for streaming agreements. Within the last two years, the Company has developed its strategy from a streaming/royalty business model to a vertically-integrated cannabis business. The Company’s international footprint includes operations in production, extraction, processing, development and retail. On July 25, 2019, Auxly Cannabis Group announced that Imperial Brands PLC will invest ~$123M in Auxly by way of a convertible debenture and grant Auxly global licenses to Imperial Brands’ vaping technology. It is expected this partnership should accelerate Auxly’s business plan of focusing on the development of science-backed and innovative derivative products. Visit Auxly’s corporate website for more information.
- Market Cap: $558.1 Million
- 90 Day Return: 19%
- 90 Day Average Daily Volume (1,000): 1,112
- 30 Day Average Daily Volume (1,000): 2,301
WeedMD Inc. (TSXV:WMD) – $1.66
WeedMD is a Canadian federally-licensed cultivator and distributor of cannabis and cannabis extracts for medical and recreational markets. Currently, the Company owns and operates two licensed facilities: 1) in Aylmer, Ontario, a 26,000 sq. ft. facility and; 2) a 158-acre property located in Strathroy, Ontario, which also includes a 616,000 sq. ft. greenhouse facility. In total, WeedMD has 136,000 sq.ft of licensed production space with 150,000kg of fully-funded capacity. Additionally, the Company is expecting to expand its footprint to more than 550,000 sq.ft. of indoor and greenhouse production space by the end of 2019. On May 31, 2019, the Company received approval for 27 acres (1.1M sq.ft) of outdoor cultivation space. On August 7, 2019, the Company released its preliminary Q2/19 revenue of $8M, which shows it has increased its net revenues QoQ by more than 140%. On August 2, 2019, the Company received Health Canada approval to expand production with 10 additional 10,000 sq.ft cultivation rooms and 10 new processing rooms at its greenhouse in Strathroy, Ontario. Visit WeedMD’s corporate website for more information.
- Market Cap: $189.9 Million
- 90 Day Return: 1%
- 90 Day Average Daily Volume (1,000): 364
- 30 Day Average Daily Volume (1,000): 259
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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