The Canadian marijuana stocks we’ve chosen have well-established medical cannabis operations and could receive patients previously served by CannTrust Holdings (TSX:TRST)
SmallCapPower | September 19, 2019: CannTrust Holdings Inc. (TSX:TRST), on September 17, 2019, announced that Health Canada has suspended the Company’s licenses to produce and sell recreational and medical cannabis. As of the Company’s Q1/19 filings (ended March 31, 2019), CannTrust had ~70,000 medical cannabis patients. Today we have identified four Canadian marijuana stocks with a strong focus on medical cannabis that could gain additional patients from CannTrust.
*Share prices as at September 17, 2019, data obtained from S&P Capital IQ
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WeedMD Inc. (TSXV:WMD) – $1.45
Cannabis
WeedMD is a Canadian federally-licensed cultivator and distributor of cannabis and cannabis extracts for medical and recreational markets. As of now, the Company owns and operates two licensed facilities: 1) in Aylmer, Ontario, a 26,000 sq. ft. facility and; 2) a 158-acre property located in Strathroy, Ontario, which also includes a 616,000 sq. ft. greenhouse facility. Overall, WeedMD has 136,000 sq.ft of licensed production space with 150,000 kg of fully-funded capacity. Additionally, the Company is expecting to expand its footprint to more than 550,000 sq.ft. of indoor and greenhouse production space by the end of 2019. On May 31, 2019, the Company received approval for 27 acres (1.1M sq.ft) of outdoor cultivation space. On August 14, 2019, the Company announced that 40 of its medical cannabis strains were included in the completion of the first phase of TruTrace Technologies’ medical cannabis verification pilot project with Shoppers Drug Mart. Visit the Company’s corporate website for more information.
- Market Cap: $165.9M
- 90-Day Return: -4.6%
- YTD-Return: +9.9%
- 90-Day Average Trading Volume: 408,190
Aleafia Health Inc. (TSX:ALEF) – $0.95
Cannabis
Aleafia Health is a vertically-integrated cannabis health and wellness company. The Company operates in four major business segments: 1) Cannabis Cultivation & Products; 2) Health & Wellness Clinics; 3) Cannabis Education and; 4) Consumer Experience with eCommerce. Operations are conducted from three cultivation facilities owned by the Company, which are comprised of: 1) Port Perry Facility, which is an indoor grow that is licensed and fully operational; 2) the Niagara Facility, which is a greenhouse in a plant-ready state that is waiting for a Health Canada cultivation license; and 3) the Paris Facility, which is a 25,000 sq. ft facility that is federally licensed for cultivation, processing and sale of medical and recreational cannabis. On July 15, 2019, the Company announced it secured a Health Canada licence amendment to increase its outdoor cultivation area at Port Perry from 292,000 sq.ft to over 1.1M sq.ft. Currently, the Company serves 60,000 medical patients. On August 14, 2019, the Company reported its Q2/19 financial results, which showed record revenue of $4M, an increase of 159% when compared to the previous quarter. Additionally, the Company strengthened its balance sheet with about $58M of cash on hand as of June 30, 2019. Visit the Company’s corporate website for more information.
- Market Cap: $261.0M
- 90-Day Return: -19.9%
- YTD-Return: -33.9%
- 90-Day Average Trading Volume: 913,530
Aurora Cannabis Inc. (TSX:ACB) – $6.99
Cannabis
Aurora Cannabis is a vertically-integrated and horizontally-diversified cannabis company that is located in Edmonton, Alberta. Currently, the Company has a funded capacity that exceeds 625,000kg per year. Aurora Cannabis has sales operations in 25 countries across five continents. The Company has 15 global production facilities with 3 EU GMP certified, 40 clinical studies running or completed and over 77,000 medical patients served. On August 18, 2019, Aurora announced the completion of its acquisition of Hempco Food and Fiber Inc. for ~$63.4M. This provides the Company with access to low-cost, high-volume, raw hemp material for the extraction of CBD and other cannabinoids. Visit the Company’s corporate website for more information.
- Market Cap: $7,191.1M
- 90-Day Return: -28.1%
- YTD-Return: +4.3%
- 90-Day Average Trading Volume: 35,792,530
Cronos Group Inc. (TSX:CRON) – $14.79
Cannabis
Cronos is a globally-diversified and vertically-integrated cannabis company that currently has operations in five continents. The Company has two wholly-owned Canadian licensed producers: 1) Peace Naturals Project Inc., a global health and wellness platform; and 2) Original BC Ltd., a recreational adult-use Canadian licensed producer that is located in Okanagan Valley, BC. Cronos’ business strategy is to focus on building an international iconic brand portfolio in addition to developing its intellectual property. On August 8, 2019, the Company released its Q2/19 financial results, which showed net revenue of $10.2M, an increase of 58% QoQ from $6.5M in Q1/19. This was driven mainly by increased sales of CBD oil. Visit the Company’s corporate website for more information.
- Market Cap: $4,971.7M
- 90-Day Return: -33.0%
- YTD-Return: +1.3%
- 90-Day Average Trading Volume: 13,910,320
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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