The Canadian marijuana stocks on our list should benefit greatly from being added to the HMMJ ETF during its rebalancing on September 26, 2018
SmallCapPower | September 27, 2018: The Horizons Marijuana Life Sciences Index (TSX:HMMJ) is an Exchange Traded Fund that is designed to provide investors exposure to North American publicly-listed companies involved in the cannabis industry. On September 25, we identified four Canadian cannabis stocks that have been included in the ETF since the last rebalancing on June 29. On September 26, HMMJ released its most recent quarterly rebalancing and we identified four Canadian marijuana stocks that were added that we think have the best chances of benefiting from this ETF inclusion.
Eve & Co Inc. (TSXV:EVE) – $0.48
Eve & Co focuses on the production of cannabis products specifically for the female cannabis consumer. The Company, located in Strathroy, Ontario, owns a 220,000 sq. ft. greenhouse production facility with annual production capacity of 10,000 kg per year. Eve & Co is currently undergoing expansion of its production facility, adding 780,000 sq. ft. yielding an extra 57,600 kg of production per year. The completion date is expected to be in the Spring of 2019.
- Market Cap: $104.1 Million
- Weighting in HMMJ Index: 0.17%
- 1-Month Total Return: 54.8%
- YTD Total Return: 65.5%
Indiva Ltd. (TSXV:NDVA) – $0.88
Indiva operates in cannabis production and oil extraction from their London, Ontario production facility. The facility is 40,000 sq. ft. but currently production is limited to an 8,000 sq. ft. segment. Annual production is currently estimated at 2,500-3000 kg per year but will increase once the remaining 30,000 sq. ft. retrofit is completed at the London facility. On September 4, 2018, the Company signed a three-year cannabis concentrate program agreement with MediPharm Labs Inc., whereby Indiva will supply dried cannabis for production into cannabis oil.
- Market Cap: $71.3 Million
- Weighting in HMMJ Index: 0.11%
- 1-Month Total Return: 11.4%
- YTD Total Return: -29%
James E Wagner Cultivation Corp. (TSXV:JWCA) – $1.19
James E Wagner Cultivation is a cannabis production company located in Kitchener, Ontario, which specializes in aeroponic cultivation. Aeroponics is the process of growing plants in an air or mist environment without the use of soil. The Company has a patent pending for its aeroponic growth system known as ‘GrowthStorm’, which provides optimal growing conditions throughout the plants’ life cycle. The Company’s Kitchener facility is 15,000 sq. ft. and is capable of growing 1,500 kg of cannabis per year. A second, 345,000 sq. ft. facility is currently being retrofitted with a projected capacity of 28,000 kg per year.
- Market Cap: $100.7 Million
- Weighting in HMMJ Index: 0.12%
- 1-Month Total Return: 60.8%
- YTD Total Return: -5.6%
GTEC Holding Ltd. (TSXV:GTEC) – $1.11
GTEC Holdings is a cannabis company from Kelowna, British Columbia that identifies and consolidates craft cannabis producers within the industry. Currently, the Company owns six assets spanning three provinces including: Alberta Craft Cannabis, Greentec Bio-Pharmaceuticals Corp, Tumbleweed Farms, Falcon Ridge Farms, Grey Bruce Farms, and Zen Labs. Following expansion plans of these assets the Company will have estimated yearly cannabis production of 50,000 kg by 2020.
- Market Cap: $95.2 Million
- Weighting in HMMJ Index: 0.15%
- 1-Month Total Return: -1.8%
- YTD Total Return: -22.9%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
To read our full disclosure, please click on the button below: