The four Canadian marijuana stocks on our list have the greatest number of shares sold by insiders in the cannabis space this year
SmallCapPower | June 14, 2018: Insider selling, not to be confused with insider trading, is when a corporation’s employee or a 10%+ shareholder sells the company’s stock. Usually, insiders of a company are more knowledgeable about its operations than a typical investor. Generally, if a company experiences significant insider selling, it could be seen as a negative but there are other reasons why insiders decide to sell stock. Apart from Aurora Cannabis, none of the Canadian marijuana stocks on our list have experienced any insider buying during 2018.
Aurora Cannabis Inc. (TSX:ACB) – $8.86
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. On June 12, the Company signed a binding agreement to acquire Anandia Laboratories Inc., an independent cannabis product tester for $115M. Since March, Aurora insiders sold 2.3M shares for a total value of $25.5M at an average approximate price of $11.00.
- Market Cap: $4,975.0 Million
- 1 Week Total Return: 1.7%
- 3 Month Total Return: -23.9%
- # Shares Outstanding: 561.5M
Aphria Inc. (TSX:APH) – $11.49
Aphria is a licensed producer and supplier of medical marijuana under the ACMPR. Aphria’s flagship greenhouse production facility is located on a 169-acre property in Leamington, Ontario. The Company currently produces 9,000 kg and plans to expand its production facility. Subsequent to the company’s release of its Q3 2018 report, Health Canada issued a license amendment to approve Aphria’s expansion project. The amendment approved an additional 200,000 sq. ft. of production space, increasing Aphria’s production capabilities by a further 30,000 kg annually. The Company plans to produce 220,000 kg in 2019. Since April, Aphria insiders sold 705K shares for a total value of $7.8M at an average price of $11.11.
- Market Cap: $2,414.3M
- 1 Week Total Return: -5.5%
- 3 Month Total Return: -19.6%
- # Shares Outstanding: 210.1M
Hydropothecary Corp. (TSXV:THCX) – $4.97
Hydropothecary is a Canadian cannabis producer, operating a 50,000 sq. ft. grow facility in Quebec. The Company differentiates itself through its commitment to natural growth techniques and a focus on customer service. Current operations produce 3,600 kg of cannabis per year. In October 2017, construction began on a new 250,000 sq. ft. facility, anticipated to be operational by summer 2018. A second greenhouse construction project is expected to add an additional 1M sq. ft., scheduled to be completed by December 2018. With both new greenhouses operational, the Company expects to be able produce 108,000 kg of cannabis per year. Since March, Hydropothecary insiders sold 1.2M shares for a total value of $4.6M at an average price of $3.91.
- Market Cap: $952.0M
- 1 Week Total Return: 1.0%
- 3 Month Total Return: 27.8%
- # Shares Outstanding: 191.0M
ABcann Global Corp. (TSXV:ABCN) – $1.51
ABcann Global, formerly Panda Capital Inc, is a Canada-based company, which operates as a licensed Canadian cannabis producer through ABcann Medicinals Inc. It provides a fully-operational, 14,500 sq. ft. facility with production capacity of 1,000 kg annually and plans to commence development of a 71,000 sq. ft. facility with production capacity of 20,000 kg per year. Since January, ABcann insiders sold 978K shares for a total value of $2M, of which 800K shares were just recently sold in March, at an average price of $2.09.
- Market Cap: $293.6M
- 1 Week Total Return: 7.9%
- 3 Month Total Return: -25.6%
- # Shares Outstanding: 194.4M
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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