The Canadian cannabis stocks we’ve uncovered have recently been included in the Horizons Marijuana Life Sciences (HMMJ) ETF, which would likely boost their stock prices should the ETF’s assets under management continue to rise
SmallCapPower | September 25, 2018: The Horizons Marijuana Life Sciences Index (TSX:HMMJ) is an Exchange Traded Fund that is designed to provide investors with diversified exposure to North American publicly-listed companies with specific emphasis on companies involved in the cannabis industry. HMMJ includes 50 stocks, with Aurora Cannabis (TSX:ACB), Canopy Growth (TSX:WEED), and Aphria Inc. (TSX:APH) currently comprises 37.2% of the portfolio. HMMJ has an average daily trading volume of 1,104,538 trades and is rebalanced quarterly to maximize investor returns. Today, we have identified four Canadian cannabis stocks that were introduced to HMMJ’s index since its last rebalancing on June 29. Investors may benefit as additional funds are rebalanced into smaller market-cap names.
Aleafia Health is a vertically-integrated cannabis company with a network of 22 medical cannabis clinics dispersed across Canada. For production, Aleafia operates a 76-acre ACMPR licensed cultivation facility in Scugog, Ontario, including a 7,000 sq. ft. indoor hydroponic facility with a 150,000 sq. ft. expansion plan current in the works. The Company’s annual production guidance for 2019 is estimated at 38,000 kg. Aleafia announced that it had been added to the HMMJ ETF on September 21, 2018.
- Market Cap: $219.0 Million
- Weighting in HMMJ Index: 0.44%
- 1 Month Total Return: 231.9%
- YTD Total Return: 156.9%
Namaste Technologies Inc. (TSXV:N) – $3.41
Namaste Technologies is an international cannabis eCommerce company operating across 20 countries and utilizing machine learning to provide patients access to medical cannabis products. In 2018, the Company plans on establishing Namaste MD, a secure telemedicine portal designed to connect doctors with patients in need of medicinal cannabis. The platform will provide patients with an online portal to receive doctor consultations, receive medical marijuana recommendations, and have their prescription shipped to their home through a same-day or two-day delivery option. On September 21, the Company announced that its wholly-owned subsidiary, CannMart, received its ACMPR medical cannabis ‘sales only’ license from Health Canada, giving the Company access to sell medical cannabis online within Canada. Namaste Technologies announced its inclusion into the HMMJ Index on September 19.
- Market Cap: $1,003.0 Million
- Weighting in HMMJ Index: 1.35%
- 1 Month Total Return: 82%
- YTD Total Return: -1.45%
Village Farms International Inc. (TSX:VFF) – $7.79
Village Farms International is a leading large-scale and low-cost greenhouse grower of agricultural products. The Company formed a 50/50 joint venture, “Pure Sunfarms,” with Emerald Health Therapeutics, Inc. (TSXV:EMH), transforming Village Farms into a low-cost, licensed cannabis producer with a capacity of 4.8M sq. ft, and yields of up to 300,000kg. On September 6, the Company announced that it had received an amendment to its cultivation license from Health Canada allowing Village Farms to expand production area from its current 225,000 sq. ft., to 550,000 sq. ft. at its facilities located in Delta, BC. The newly-licensed area is expected to be in full production by mid-October 2018. Village Farms was included in HMMJ during its last rebalancing on June 29.
- Market Cap: $321.8 Million
- Weighting in HMMJ Index: 0.65%
- 1 Month Total Return: 18.35%
- YTD Total Return: -5.80%
Green Organic Dutchman Holdings Ltd. (TSX:TGOD) – $8.25
Green Organic Dutchman Holdings is a Canada-based cannabis producer with operations in Ontario and Quebec. The Company’s facilities are under construction but have already received the ACMPR cultivation and sales license. 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 flower. On August 21, 2018, the Company announced the acquisition of the privately-held company, HemPoland, the leading European manufacture of organic CBD. The Green Organic Dutchman was added to the HMMJ ETF in the last rebalancing on June 29.
- Market Cap: $2,001.0 Million
- Weighting in HMMJ Index: 4.49%
- 1 Month Total Return: 42.24%
- YTD Total Return: 112.08%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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