The Canadian cannabis stocks we’ve dug up have the greatest number of short positions in the Canadian cannabis space from the period of August 7 to August 21, 2019
SmallCapPower | August 27, 2019: With cannabis regulations loosening around the world, the industry has been characterized by growth and bullish speculation. Despite the growing acceptance towards cannabis, many investors do not believe all the hype and predict that the industry is overvalued. On August 21, the Investment Industry Regulatory Organization of Canada (IIROC) released its Consolidated Short Position Report, depicting the most shorted cannabis stocks from the period of August 7, 2019, to August 21, 2019. Today, using this report, we have weeded out the four most-shorted Canadian cannabis stocks during that time.
*Share prices as at close Friday, August 23, 2019, data obtained from S&P Capital IQ
Aurora Cannabis Inc. (TSX:ACB) – $7.52
Aurora Cannabis is a vertically-integrated and horizontally-diversified cannabis company based in Edmonton, Alberta, which currently has a funded capacity that exceeds 625,000kg per year. The Company has sales operations in 25 countries across five continents. As of now, the Company has 18 strategic acquisitions, 15 global production facilities with 3 EU GMP certified, 40 clinical studies running or completed and over 77,000 medical patients served. On August 19, Aurora Cannabis announced the completion of the previously-announced acquisition of Hempco Food and Fiber Inc. Hempco is a producer of hemp-based foods, hemp fiber and hemp nutraceuticals and is expected to provide Aurora with access to low-cost, high-volume raw hemp material for the extraction of CBD.
- Market Cap: $7.7B
- YTD Return: 6.1%
- Average 90 Day Trading Volume: 4,060,000
- Shares Held Short: 31,908,336
- Short Interest Ratio: 7.9x
Golden Leaf Holdings Ltd. (CSE:GLH) – $0.05
Golden Leaf Holdings is a Canada-based cannabis company that practices cultivation, production and retail with operations in Oregon, Nevada and Canada. The Company distributes its products through its branded Chalice Farms retail dispensaries and through third-party dispensaries. The Company produces and distributes various types of products, such as cannabis flower and cannabis oils. On August 26, Golden Leaf Holdings Ltd announced its financial results for Q2/19. These results featured revenue of US$4.3M, an increase of 17% from the previous quarter, and an Adjusted EBITDA loss of US$1.5M compared to an EBITDA loss of US$3.5M in the previous quarter.
- Market Cap: $40.8M
- YTD Return: -70.6%
- Average 90 Day Trading Volume: 1,030,000
- Shares Held Short: 14,417,465
- Short Interest Ratio: 14x
Canopy Growth Corporation (TSX:WEED) – $33.15
Canopy Growth is the largest cannabis company listed by market cap on the TSX and NYSE. The Company has the largest licensed production platform in Canada, with over 600,000 sq. ft. of production space. The Company has also secured the necessary agreements to export medicinal cannabis to Australia, Brazil, and Germany. On August 20, Canopy Growth announced that it has received a license from Health Canada for its KeyLeaf Life Sciences facility in Saskatoon, Saskatchewan. This facility is expected to be online in the Fall of 2019 and has the capacity to extract up to 5,000kg of hemp or cannabis biomass per day.
- Market Cap: $11.5B
- YTD Return: -15.6%
- Average 90 Day Trading Volume: 1,790,000
- Shares Held Short: 9,576,980
- Short Interest Ratio: 5.4x
HEXO Corporation (TSX:HEXO) – $5.34
HEXO is a consumer-packaged goods cannabis experience company. The Company currently operates 2.4 million sq. ft of facilities in Ontario and Quebec. Through its hub and spokesperson strategy, the Company is partnering with Fortune 500 companies to bring its brand value, cannabinoid isolation technology, licensed infrastructure and regulator expertise to established businesses, leveraging its distribution networks and capacity. On August 14, HEXO Corp announced that its dried flower cannabis products are now available to Ontario consumers, after finalizing terms with the Ontario Cannabis Store (OCS). HEXO now adds nine of its dried flower offerings in both 3.5g and 15g SKUs to the OCS, including the Company’s award-winning Helios dried flower.
- Market Cap: $1.4B
- YTD Return: 4.4%
- Average 90 Day Trading Volume: 1,970,000
- Shares Held Short: 8,969,434
- Short Interest Ratio: 4.6x
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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