Worst-Performing Canadian Cannabis Stocks in 2018

The Canadian cannabis stocks on our list suffered the most in what was a volatile year for the marijuana sector

SmallCapPower | December 28, 2018: 2018 marks a historic year for the cannabis industry, with Canada becoming the first G7 nation to federally legalize marijuana for recreational use. The year began strong for cannabis stocks, following a strong rally that began late 2017. The good times soon came to an end, however, as cannabis stocks mirrored sharp declines across global financial markets starting mid-January. Cannabis stocks saw another rally following the passage of Bill C-45 in June 2018, as well as Constellation’s (NYSE:STZ) announced $5B investment in Canopy Growth Corp in August. Towards the end of the year, following a short seller report against Aphria and also mirroring declines in major equity indices, cannabis stocks saw further declines. Today we’ve identified three Canadian cannabis stocks that have generated some of the lowest returns for shareholders in 2018.

For Our Complete Coverage Of Canadian Marijuana Stocks Click Here   

*Market Cap and share prices as of December 21, 2018.

Harvest One Cannabis Inc. (TSXV:HVT) – $0.38

Harvest One Cannabis is a licensed marijuana producer that operates three subsidiaries: United Greeneries, Satipharm and DREAM WATER. United Greeneries operates the Company’s two production facilities located in British Columbia and Saskatchewan with a current production capacity of 1,000 kg/year. Satipharm, its distribution subsidiary, is producing cannabis-based microgel capsules for distribution in Europe and Australia. Finally, DREAM WATER produces single-use liquid and powder supplements for use in the sleep market.

  • Market Cap: $69.2 Million
  • 1 Month Returns: -9.5%
  • YTD Returns: -72.1%

1933 Industries Inc. (CSE:TGIF) – $0.34

Formerly known as Friday Night Inc., the Company operates cannabis and hemp-based assets in Las Vegas, Nevada. 1933 Industries owns 91% of Alternative Medicine Association, LC, a licensed cultivator, producer and developer of cannabis-based products. The Company also has a 91% stake in Infused MFG, a hemp-based CBD producer. 1933 Industries has a 12,000 sq. ft. cultivation and production facility and a 5,000 sq. ft. CBD-infused production facility. The Company plans an expansion of 67,000 sq. ft. and has already purchased five more acres of land in Las Vegas for future expansion. The Company’s Infused Canna Hemp line of CBD-infused products recently reported monthly revenues of over US$600,000, compared to US$7,403 in June 2017.

  • Market Cap: $80.1 Million
  • 1 Month Returns: -22.7%
  • YTD Returns: -72.4%

Sunniva Inc. (CSE:SNN) – $2.85
Real Estate

Sunniva is a Canada-based cannabis producer of medical marijuana. The Company is vertically integrated with operations divided between production, clinics, and paraphernalia. The Company is currently expanding its existing facility and constructing a second that it hopes will yield a combined 200,000 kg/annum by 2020. On November 27, 2018, Sunniva announced the acquisition of LTYR Logistics, a California-based cannabis distribution company headquartered in San Diego. The acquisition will play a vital role in Sunniva’s goal to become a vertically-integrated cannabis company within California.

  • Market Cap: $104.4 Million
  • 1 Month Returns: -35.5%
  • YTD Returns: -68.1%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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