The Canadian marijuana stocks we’ve uncovered have recently been included in the Horizons Marijuana Life Sciences (HMMJ) ETF
SmallCapPower | March 21, 2019: The Horizons Marijuana Life Sciences Index (TSX:HMMJ) is an Exchange Traded Fund (ETF) designed to provide investors with diversified exposure to North American publicly-listed cannabis companies. HMMJ includes 58 stocks, with Aurora Cannabis (TSX:ACB) at 11.8%, Canopy Growth Corp (TSX:WEED) at 11.0%, and Tilray Inc (NASDAQ:TLRY) at 9.1%, which together comprise 31.9% of the portfolio. HMMJ has a 30-day trading volume of 597,000 shares and is rebalanced quarterly to maximize investor returns. The EFT also lends out it shares to short sellers and charges interest, thus it pays a quarterly distribution to its investors. The last distribution was $0.287 per share, on December 28, 2018. Today we have identified four Canadian marijuana stocks that were added to the HMMJ index since its last rebalancing, which could benefit most from this inclusion.
*Share prices as at close March 19, 2019, data obtained from S&P Capital IQ
Westleaf Inc. (TSXV:WL) – $2.88
Westleaf is focused on cultivation, production and extraction of cannabis, which began trading on January 9, 2019. The Company is rolling out a retail store footprint called Prairie Records, which aims to merge the tie between recreational cannabis and music to redefine the purchasing experience. Stores are planned for British Columbia, Alberta, Saskatchewan, and potentially Ontario. WL is targeting to open between 20-30 retail stores over the next 12 to 24 months. On January 24, the Company announced it had acquired Canndra Canada, a cannabis retail company with over 50 prospective retail locations in Canada for $48.4M. On January 28, 2019, Westleaf announced it had acquired a 50% interest in the Delta West extraction facility from Delta 9 Cannabis (TSXV:NINE), which is a planned 60,000 sq. ft facility, including R&D, processing, extraction, and fulfillment. Currently Phase I construction of ~15,000 sq. ft. has begun and is expected to be completed and operational by the summer of 2019, with the remaining 45,000 sq. ft. to be operational by 2020.
- Market Cap: $469.5 Million
- YTD Return: +65.9%
- 30-Day Average Volume: 190,000
- 90-Day Average Volume: 206,000
- Shares Outstanding: 163.0 Million
PharmaCielo Ltd. (TSXV:PCLO) – $11.02
PharmaCielo is a Canada-based cannabis company that focuses on processing and supplying natural, medicinal cannabis oil extract and related products to large channel distributors. The Company’s wholly-owned principal subsidiary is headquartered at its nursey and propagation center in Rionegro, Colombia. It currently has 139 hectares of total cultivation capacity and expects to complete the construction of its 24,757 sq. ft. GMP2 certified Research and Technology production and processing facility by the end of Q2/19. On January 19, the Company began trading on the TSX Venture Exchange. On March 19, the Company announced it is the first and only Colombian cannabis company to receive the ISO 9001:2015 certification for its medical marijuana cultivation and processing operations.
- Market Cap: $1.0 Billion
- YTD Return: +88.4%
- 30-Day Average Volume: 408,000
- 90-Day Average Volume: 457,000
- Shares Outstanding: 95.4 Million
The Flowr Corporation (TSXV:FLWR) – $6.73
The Flowr Corporation operates a 16,000 sq. ft. indoor production facility in Kelowna, British Columbia, capable of producing an annual capacity of 3,100 kg. The facility is customized for a “enhanced sea-of-green” growing style, utilizing equal-sized plants to target maximum yields and produce the highest-quality products. An expansion project on the Kelowna facility is currently under progress with a projected production capacity of 61,750 kg in 2021. On March 18, the Company announced that its FlowrRx products are now available online at Shoppers Drug Mart to qualified patients.
- Market Cap: $583.6 Million
- YTD Return: +53.3%
- 30-Day Average Volume: 494,000
- 90-Day Average Volume: 229,000
- Shares Outstanding: 86.5 Million
48North Cannabis Corp. (TSXV:NRTH) – $1.44
48North Cannabis is a cannabis company that focuses on the health market through extraction, cultivation, innovation, and the creation of authentic brands. The Company operates two indoor cannabis production sites with over 86,00 sq. ft. of production capacity in Ontario. The Company cultivates unique genetics through its wholly-owned subsidiaries DelShen Therapeutics Corp. and 2599760 Ontario Corp., doing business as Good & Green. On March 20, the Company announced that is has been added to the Horizons Marijuana Life Sciences Index ETF, Canada’s largest and best performing cannabis ETF.
- Market Cap: $185.0 Million
- YTD Return: +132.3%
- 30-Day Average Volume: 2,596,000
- 90-Day Average Volume: 1,140,000
- Shares Outstanding: 125.3 Million
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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