The Canadian cannabis stocks we’ve dug up have had the greatest change in shares held short in the cannabis space from the period of November 1, 2019 to November 15, 2019
SmallCapPower | November 27, 2019: As we head into the beginning of December, downward pressure continues to weigh on cannabis stocks. On November 14, 2019, Canopy Growth Corp (TSX:WEED) and Aurora Cannabis Inc (TSX:ACB) reported CYQ3 results, which were a disappointment to investors as revenue decreased quarter over quarter. Aurora posted revenue of $75.2M, a 24% decline, while Canopy Growth posted revenue of $76.6M, a 15% decline. Both attributed poor top-line growth to botched retail store roll-out in Ontario and Quebec. As such, short interest remains elevated in the cannabis sector. Today we have weeded out four Canadian cannabis stocks that have seen the largest increase in short positions over the first two weeks of November.
*Share prices as at November 25, 2019, data obtained from S&P Capital IQ
**Short data obtained from the IIROC Consolidated Short Report November 1, 2019 to November 15, 2019
The Supreme Cannabis Company, Inc. (TSX:FIRE) – $0.70
The Supreme Cannabis Company is based in Canada and focuses on selling to the wholesale sector for the medical cannabis market in Canada. Through its subsidiary, 7ACRES, the Company operates a 440,000 sq.ft cultivation facility outside of Toronto. The Company’s portfolio also includes: 1) Blissco Cannabis Corp, a premium cultivator in British Columbia; 2) Truverra Inc., a global medicinal cannabis brand and licensed cultivator; 3) Cambium Plant Sciences, a plant genetics and cultivation company; 4) Medigrow Lesotho, an southern Africa-based cannabis oil producer; 5) Supreme Heights, an investment platform that works on CBD brands in the UK and; 6) a brand partnership and licensing deal with Khalifa Kush Enterprises Canada.
- Market Cap: $248.0M
- 30-Day Return: -16.0%
- 90-Day Return: -49.6%
- 30-Day Average Trading Volume: 2,009,290
- Increase in Shares Held Short: 3,268,450
- Shares Held Short: 4,793,584
- Short Interest Ratio: 2.4x
MediPharm Labs Corp. (TSX:LABS) – $3.78
MediPharm is a specialized, research-driven extraction company that has operations that focus on a downstream extraction methodology, distillation, and cannabinoid isolation and purification. On October 7, 2019, MediPharm announced a private-label sales agreement with ADREXpharma GmbH for the bulk export of wholesale resin to Germany. In addition, LABS signed a supply agreement with TerrAscend Corp. (CSE:TER) for a potential of up to $192M in bulk cannabis resin over a three-year period.
- Market Cap: $494.7M
- 30-Day Return: -25.2%
- 90-Day Return: -22.4%
- 30-Day Average Trading Volume: 1,414,530
- Increase in Shares Held Short: 1,253,032
- Shares Held Short: 2,619,202
- Short Interest Ratio: 1.9x
Vireo Health International Inc. (CSE:VREO) – $1.69
Vireo Health cultivates cannabis in greenhouses, manufactures pharmaceutical-grade cannabis extracts, and sells its products at both company-owned and third-party dispensaries. The Company is licensed in 11 markets, including Arizona, Maryland, Massachusetts, Minnesota, New Mexico, New York, Nevada, Ohio, Pennsylvania, Puerto Rico, and Rhode Island. On October 17, 2019, VREO announced the launch of its new brand and products, 1937 Cannabis brand. 1937 Cannabis represents the Company’s first launch of a new cannabis brand and is the first time it has offered dry flower. The 1937 Cannabis product line features dry flower and the Company expects to include concentrates later this year.
- Market Cap: $132.1M
- 30-Day Return: +5.0%
- 90-Day Return: -11.6%
- 30-Day Average Trading Volume: 472,750
- Increase in Shares Held Short: 1,067,754
- Shares Held Short: 1,069,993
- Short Interest Ratio: 2.3x
Nutritional High International Inc. (CSE:EAT) – $0.09
Nutritional High International is engaged in the development, manufacturing, and distribution of cannabis extracts and edible products for medical and recreational use. The Company works with licensed facilities in legalized jurisdictions. The Company brought its flagship FLÏ™ edibles and extracts product line from production to market through its wholly-owned subsidiaries. On October 21, 2019, Nutritional High signed a five-year distribution agreement to distribute Thailand-based Golden Triangle Health CBD-infused nutritional products. Golden Triangle has brands such as: 1) P80 Natural Essence, an all-natural Longan juice clinically proven to improve sleep and made using an exclusive manufacturing process; 2) Siang Pure Oil Red, a topical oil derived from 100% natural herbal ingredients and designed to relieve various bodily discomforts such as aches and insect bites; and 3) Smooth-E Facial Cream, recommended by dermatologists and pharmacists to diminish scars, heal chapped skin and smooth away wrinkles.
- Market Cap: $31.1M
- 30-Day Return: -29.2%
- 90-Day Return: -45.2%
- 30-Day Average Trading Volume: 372,170
- Increase in Shares Held Short: 308,468
- Shares Held Short: 515,200
- Short Interest Ratio: 1.4x
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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