The four Canadian marijuana stocks on our list have the largest quantity of shares purchased by insiders in the cannabis space since December 2017
SmallCapPower | June 12, 2018: Insider buying, not to be confused with insider trading, is when a corporation’s employee or a 10% shareholder purchase the company’s stock. Generally, insiders of a company are more knowledgeable about its operations than is a typical investor. As a result, if a company has a large amount of insider buying it could provide an additional degree of confidence towards a potential investment.
Green Organic Dutchman Holdings Ltd. (TSX:TGOD) – $7.66
Green Organic Dutchman Holdings is a Canada-based cannabis producer with operations in Ontario and Quebec. The Company’s facilities are under construction, but have already received the ACMPR cultivation and sales license, in addition to receiving oil extractions license in May 2018. TGOD aims to be the lowest cost producer in Canada by accessing the lowest power rates in Ontario and Quebec. The combined production capacity of the two facilities totaling 970,000 sq. ft. is expected to be 116,000 kg of cannabis flower. During the past month, 610K shares were purchased by insiders at an average price of $3.60 per share.
- Market Cap: $1,460.1M
- 3 Month Total Return: 96.9%
- 1 Week Total Return: 19.9%
- # Shares Outstanding: 190.6M
OrganiGram Holdings Inc. (TSXV:OGI) – $5.79
Organigram is a Canada-based marijuana producer operating in New Brunswick. The Company currently produces 22,000 kg/year out of its 134,000 sq. ft. facility. OGI plans to expand this facility, increasing production to 65,500 kg by April 2019 and 113,000 kg by April 2020. The Company has signed Memorandums of Understanding with New Brunswick and Prince Edward Island to supply cannabis to the recreational market. Since December 2017, insiders have purchased 118K shares at an average price of $3.50 per share, with no insiders selling any of the Company stock during that period.
- Market Cap: $721.6M
- 3 Month Total Return: 34.3%
- 1 Week Total Return: 17.7%
- # Shares Outstanding: 124.6M
Cronos Group Inc. (TSX:CRON) – $9.36
Cronos Group owns and operates two licensed producers of medical marijuana in Canada: Peace Naturals (medical) and In The Zone (recreational). The Company also actively seeks investment opportunities in companies that are licensed under the ACMPR or that are actively seeking a license. In addition, Cronos plans to ramp up production at its Peace Naturals facility from the existing 5,000 kg to 40,000 kg before 2019. Of note, the Company formed a partnership with Israeli entity, Gan Shmuel, to set up a low-cost production facility in Israel. The proposed facility is expected to produce 24,000 kg/year. In April 2018, two insiders purchased a total of 400K shares at an average price of $5.30 per share.
- Market Cap: $1,643.4M
- 3 Month Total Return: -21.5%
- 1 Week Total Return: 5.8%
- # Shares Outstanding: 176.2M
Aurora Cannabis Inc. (TSX:ACB) – $9.30
Aurora Cannabis is a licensed producer and seller of medical marijuana and cannabis oil under the ACMPR. Aurora sells its products over the phone, online or through its mobile app and offers a delivery service to its customers. Currently, the Company is engaged in the construction of its new 800,000 square foot production facility in Alberta called Aurora Sky. In January 2018, Aurora announced the acquisition of CanniMed Therapeutics Inc. (TSX:CMED) for $1.1 billion. Subsequently, Aurora entered into an agreement in May 2018 to acquire MedReleaf (TSX:LEAF) for $3.2B. Since March 2018, 100K shares have been bought by insiders at an average price of $8.7 per share.
- Market Cap: $5,222.1M
- 3 Month Total Return: -17.9%
- 1 Week Total Return: 15.4%
- # Shares Outstanding: 561,515,531
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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