The Canadian cannabis stocks on our list are likely to see high volatility after reporting financial results in the coming days
SmallCapPower | January 4, 2019: Today we have identified four Canadian cannabis stocks that are expected to report financial results in the coming weeks. These companies are all major players in the cannabis industry and could steer the direction of the entire sector in the short term based on their financial results. Aphria kicks off this round of financials for cannabis companies by reporting on January 11, 2019, with Organigram on February 2, 2019, Canopy Growth on February 13, 2019, and Aurora Cannabis on February 14, 2019. Strong financial results from these companies could provide a much-needed catalyst for the industry that has seen a significant selloff from its October 15, 2018 peak.
*All share prices are as at close 31-Dec-2018, filtered by earliest report date to latest
Aphria Inc. (TSX: APHA) – $7.85
Aphria is one of Canada’s largest cannabis producers by licensed capacity. The Company’s Leamington greenhouse facility provides it with the opportunity to be a scalable, low-cost producer of medical marijuana. APHA sells medical marijuana and its derivatives through both retail sales and wholesale channels. Retail sales are sold primarily through the Company’s online store, as well as telephone orders. By January 2019, the Company expects to increase its cumulative licensed greenhouse growing space to 1,000,000 sq. ft., increasing its annual production capacity from 9,000 kilograms to 100,000 kilograms. The Company currently has 44,000 sq. ft. of production space. On December 3, 2018, Hindenburg Research released a short-seller report accusing Aphria of purchasing its Latin American assets at inflated prices for the benefit of company executives and insiders. As of December 31, 2018, the Company has yet to release a comprehensive rebuttal against the allegations. On December 28, Green Growth Brands (CSE:GGB) announced a hostile takeover bid for Aphria at $11/share. GGB has already acquired 10% of Aphria’s outstanding shares.
Earnings Release Date: January 11, 2019
- Market Cap: $1,960.6 million
- Quarterly Revenues: $ 13.3 million (Q1 2019)
- 1-Month Total Return: – 25.3%
- 3-Month Total Return: – 56.3%
Organigram Holdings Inc. (TSXV: OGI) – $4.84
Founded in New Brunswick in 2013, Organigram is a Canada-based company that strives to provide quality cannabis products to patients across the country. Working with healthcare providers and conducting research, the Company focuses on providing effective and safe products. With a great improvement in the quality and density of its flowers, OGI has already completed expansion projects. The Company has increased its capacity to 36,000 kg/year and is expected to further increase its production to 113,000kg/year by October 2019. OGI has signed Memorandums of Understanding with Prince Edward Island for the supply of approximately $8 -$12 million worth of recreational cannabis and with New Brunswick for 5 million grams in 2018. With approximately 24% of the market share in both Nova Scotia and Prince Edward Island, Organigram is ahead of Aurora, Canopy, and Aphria (TSX:APHA) in those provinces. Leading the Atlantic, OGI is expected to see an increase of 891% in revenue in the upcoming year.
Earnings Release Date: February 02, 2019
- Market Cap: $627.1 million
- Quarterly Revenues: $2.4 million (Q4 2018)
- 1-Month Total Return: – 13.6%
- 3-Month Total Return: – 29.8%
Canopy Growth Corporation (TSX:WEED) – $36.61
Canopy Growth Corp. is one of the largest cannabis companies on the TSX and NYSE listed by market cap. They were the first company to be publicly traded in North America and have positioned themselves in Canada’s recreational market through securing a variety of agreements with the Provinces of Quebec, New Brunswick, Prince Edward Island, and Newfoundland & Labrador. With over 600,000 sq. ft. of production space, the Company has the largest licensed production platform in Canada, supplying the adult consumer market with quality cannabis. Striving to maintain their leading market position, the Company is continuously looking for ways to grow, including its December 6th acquisition of Storz & Bickel, a German vape company, in a deal valued at $221 million.
Earnings Release Date: February 13, 2019
- Market Cap: $12,547.3 million
- Quarterly Revenues: $23.3 million (Q2 2019)
- 1-Month Total Return: – 18.9%
- 3-Month Total Return: – 41.6%
Aurora Cannabis Inc. (TSX:ACB) -$6.78
Founded in Edmonton, Aurora Cannabis is a licensed producer and distributor of medical cannabis. With about 1,000,000 sq. ft. of licensed production space, the Company plans on producing approximately 270,000 kilograms of cannabis annually. In early December 2018, Aurora announced it had commenced the shipment of its soft gel capsules for the Canadian medical and recreational markets. As of September 2018, Aurora had eight licensed production facilities and operations in 18 countries. Applying its aggressive international strategies, the Company announced its agreement with Luxembourg, supplying the city with medical marijuana. On December 10, 2018, Aurora Cannabis announced its Letter of Intent to acquire Farmacias Magistrales S.A., Mexico’s first and sole importer of raw materials consisting of THC.
Earnings Release Date: February 14, 2019
- Market Cap: $6,970 million
- Quarterly Revenues: $29.7 million (Q1 2019)
- 1-Month Total Return: – 10.8%
- 3-Month Total Return: – 45.4%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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