The Canadian cannabis stocks we’ve weeded out have had an average stock price return of 87% year to date
SmallCapPower | December 4, 2019: Canadian licensed producers continued to see more selling action into the beginning of December. As a benchmark, the Horizons Marijuana Life Sciences Index (TSX:HMMJ) is down ~60% from its 2019 high of $23.65 on March 19, 2019. The all-time lows in the HMMJ index are being fueled by disappointing financials from Canopy Growth and Aurora Cannabis, which both posted sequential declines in revenues for CY/Q3. Aurora posted revenue of $75.2M, a 24% decline, while Canopy Growth posted revenue of $76.6M, a 15% decline. Both companies attributed poor top-line growth to blotched retail store roll-out in Ontario and Quebec. However, not all cannabis companies are alike, and some have managed to post positive return year to date. Today we have identified four Canadian cannabis stocks that have posted the biggest year-to-date gains.
*Share price data as at December 2, 2019, data obtained from S&P Capital IQ
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MediPharm Labs Corp. (TSX:LABS) – $3.52
Cannabis Extraction
MediPharm Labs is the first company in Canada under the ACMPR without first receiving a cultivation license to become a licensed producer for cannabis oil production. MediPharm Labs produces purified, pharmaceutical-like cannabis oils and concentrates through its cGMP and ISO standard clean rooms laboratory. The Company currently has a 70,000 sq. ft. facility with 150,000 kg capacity and is planning to expand to 250,000 kg capacity by Q2/19. MediPharm Labs has invested in expert, state-of-the-art technology and extraction methods to deliver safe and precisely-dosed cannabis products to consumers and patients. On May 14, 2019, MediPharm Labs announced that it has entered into a multi-year supply agreement with Cronos Group Inc. It is expected that MediPharm Labs will supply Cronos Group with about $30M of cannabis concentrate over 18 months, and depending on renewal and purchase options, possibly up to $60M over 24 months.
- Market Cap: $460.6M
- 30-Day Return: -23.6%
- YTD-Return: +102.3%
- 30-Day Average Trading Volume: 1,470,880
Valens GroWorks Corp. (TSXV:VGW) – $3.02
Cannabis Extraction
Valens GroWorks is a pure-play cannabis extraction company with 425,000 kg of extraction capacity. Valens has signed extraction agreements with Organigram, Tilray, Canopy Growth, and HEXO Corp. Valens also has a strategic partnership with ThermoFisher Scientific, one of the world’s leading manufacturers of lab equipment, in addition to an ISO 17025 labs accreditation, which allows the Company to conduct standardized testing for over 400 different metals, pesticides, terpenes, residual solvents, microbials, and cannabinoid profiles.
- Market Cap: $375.1M
- 30-Day Return: +1.3%
- YTD-Return: +100.0%
- 30-Day Average Trading Volume: 320,570
Village Farms International, Inc. (TSX:VFF) – $8.30
Cannabis
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 October 22, 2019, VFF completed its $28M bought deal at $9.40/share.
- Market Cap: $434.9M
- 30-Day Return: -22.8%
- YTD-Return: +87.8%
- 30-Day Average Trading Volume: 836,770
Trulieve Cannabis Corp. (CSE:TRUL) – $17.45
Cannabis
Trulieve is a seed-to-sale operation in the state of Florida, with plans to acquire additional facilities in Massachusetts, California, and Connecticut. The Company claims to be the largest, fully-licensed medical cannabis company in the State of Florida, with over 1.6M sq. ft of cultivation space yielding ~55,000 kg annually. Trulieve is in the process of constructing an additional 72,000 sq. ft, which would increase production capacity by 10,000 kg. TRUL also has a network of 37 dispensaries selling branded products, with a total of 240 stock keeping units (SKUs) and over 203,600 patients as of August 31, 2019. Trulieve is anticipating having 44 dispensaries open by year end.
- Market Cap: $1,925.5M
- 30-Day Return: +30.2%
- YTD-Return: +58.6%
- 30-Day Average Trading Volume: 273,240
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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