The Canadian cannabis stocks we’ve identified generated big gains during the past three months, outperforming its major competitors
SmallCapPower | January 18, 2019: Since the stock market downturn in early December, most cannabis companies have experienced severe stock-price declines. Nevertheless, a select few companies have been able to provide positive returns. Today we’ve weeded out three Canadian cannabis stocks that have stood out during difficult market conditions, generating market-beating performances during the past three months.
*Share prices as at close January 16, 2019, data obtained from S&P Capital IQ.
MediPharm Labs is a Canada-based company that produces purified, pharma-grade cannabis oil and concentrates. The Company also provides processing and packing services, raw materials, and formulations for advanced derivative products. On December 24, the Company announced its approval from Health Canada to increase yearly production capacity to 150,000kg. With this output expansion, MediPharm maintains its position as Canada’s leading extraction company with the largest footprint in Canada to date. Presuming a utilization rate of 50% of the current capacity of 100,000 kg, the Company estimates potential retail revenue of ~$550 million. For the Company’s expansion to 250,000 kg, using the same utilization rate, MediPharm estimates revenue of $1.4B. The expansion is expected to be completed by Q2/19.
- Market Cap: $212.4 Million
- 1-Month Total Return: +60.16%
- 3-Month Total Return: +39.46% (as of October 24, 2018)
RISE Life Science Corp. (CSE:RLSC) – $0.20
RISE Life Science develops medical cannabis-based formulae to create products for the health and well-being of mainstream consumers. With a mission to create premium brands, the Company focuses on the hemp-based industry. Consisting of a variety of products and a broad range of consumers, the Company’s vertically-integrated team oversees all R&D, manufacturing, marketing, and branding efforts. On December 4, 2018, the Company announced that it received $5.535 million in funding, which it plans to use to fulfill its existing orders for its CBD-products and general growth strategy.
4Front Ventures Corp. (CSE:FFNT) – $0.83
Cannex Capital Holdings is a Canada-based company that engages in premium indoor cultivation, extraction, manufacturing, and branding of derivative and edible products. With cannabis operations in Washington and California, the Company is involved in real estate with operational infrastructure, as well as cannabis growing consulting services, and other non-cannabis product inputs. BrightLeaf Development LLC, the Company’s subsidiary, is the largest processor/producer in Washington State. The Company recently announced its partnership with 4front Inc, which owns five dispensaries and operates in four states, enabling Cannex to tap into the distribution and cultivation segments. The Company plans to produce from its 30,000 sq. ft. cultivating facilities with 19,000 kg/year capacity.
Ubika Research/SmallCapPower has received compensation from 4Front Ventures Corp. to provide analyst research coverage. For full disclosure please visit here >>
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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