The Canadian cannabis stocks on our list have seen big share-price declines in 2019, but could be set to bounce back
SmallCapPower | March 7, 2019: Most cannabis stocks have railed since the beginning of the year, with the average year-to-date return of our sample of 157 cannabis stocks coming in at 32.6%. However, not all stocks have been big winners. Today we have identified four Canadian cannabis stocks experiencing sharp declines year to date, which could represent an oversold opportunity.
*Share prices as at close March 5, 2019, data obtained from S&P Capital IQ
Tetra Bio-Pharma Inc. (TSXV:TBP) -$0.72
Tetra Bio-Pharma is a biopharmaceutical company focused on cannabinoid-based drug discovery and development. On February 7, the Company announced a change in its Drug Development Plan and is planning on focusing on ophthalmology (eye disorders: uveitis, corneal neuropathic pain & dry eyes) and dermatology (osteoarthritis, shingles & joint pain). The new strategic direction comes after the Company announced a six-month delay in clinical trials of PPP001, a smokable, natural medical cannabis for the treatment of chronic pain in cancer patients, due to contamination in biomass mass sourced from Aphria (TSX:APHA).
- YTD-Return: -19.1%
- Market Cap: $120.1 Million
- 30-Avergae Volume: 1,043,000
- 90-Day Average Volume: 629,000
Auxly Cannabis Group Inc. (TSXV:XLY) -$0.75
Auxly is a vertically-integrated cannabis company with operations in Canada and Uruguay. The Company currently operates three segments: upstream, Auxly’s diverse cannabis cultivation platform; midstream, processing and development platform; and downstream, a medical and recreational distribution platform. On January 24, the Company announced that it had entered into an agreement with Curative Cannabis, to fund Curative’s cannabis cultivation facility in Chatham-Kent, Ontario. The indoor facility is designed to grow premium cannabis flowers and is expected to be 30,000 sq. ft, with an annual yield of ~2,900 kg. Curative Cannabis has a proprietary genetics database of over 90 cannabis strains.
- YTD-Return: -21.8%
- Market Cap: $454.6 Million
- 30-Avergae Volume: 1,884,000
- 90-Day Average Volume: 1,696,000
Leviathan Cannabis Group Inc. (CSE:EPIC) -$0.28
Leviathan possesses deep cannabis expertise in M&A combined with substantial capital resources. The Company plans on executing a series of strategic acquisitions in Canada and globally, to support the Company’s proprietary brand strategy. The Leviathan portfolio currently comprises Jekyll + Hyde Brand, marketing services agency specializing in the cannabis sector, and Woodstock Biomed, a late-stage applicant under the ACMPR, which is planning to retrofit a substantial greenhouse production facility in Pelham, Ontario.
- YTD-Return: -26.3%
- Market Cap: $26.6 Million
- 30-Avergae Volume: 40,000
- 90-Day Average Volume: 33,000
Ascent Industries Corp. (CSE:ASNT) -$0.09
Ascent has operations in British Columbia, Oregon, and Nevada. Its Canadian operation includes the Company’s wholly-owned subsidiary, Agrima, with a license to cultivate cannabis, produce extracts, and a sales license. In Oregon, Ascent holds processing and for distribution license, as well as cultivation, production, processing, and distribution license in Nevada. Ascent has also submitted a license application to the Danish Medical Cannabis Pilot Program. In February, Health Canada suspended the Company’s cultivation, production, and sales license. Also, the Company’s has received warning of a potential suspension of their Nevada license. On March 1, Ascent filed for creditor protection with the Supreme Court of British Columbia until the Company’s license issues become resolved.
- YTD-Return: -52.6%
- Market Cap: $28.8 Million
- 30-Avergae Volume: 1,123,000
- 90-Day Average Volume: 891,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below: