The Canadian marijuana stocks on our list have reached new heights following the early 2018 sector selloff and these names may continue to climb
SmallCapPower | July 19, 2018: The cannabis market went on a bull run in January 2018, with many companies reaching all-time highs. Returns have been lackluster for much of the marijuana market since. However, some companies have managed to surpass their January peaks with continued catalysts that have spurred new growth. Today we have discovered five Canadian marijuana stocks that have yielded impressive returns following the January sector selloff.
Canopy Growth is the largest cannabis company listed by market cap on the TSX and NYSE. To position itself in the Canada’s recreational market, the Company has secured agreements with the Provinces of Quebec, Prince Edwards Island, New Brunswick, and Newfoundland & Labrador to supply their adult consumer market with high-quality cannabis. The Company has the largest licensed production platform in Canada, with over 600,000 sq. ft. of production space. To further solidify their leading position in the market, the Company expects to have up to an additional 5,000,000 sq. ft. of production over the next 12 months. The Company has also acquired the necessary agreements to export medicinal cannabis to Australia, Brazil and Germany. On June 20, the Company completed a $500M convertible senior notes offering.
- Market Cap: $7,518.1 Million
- YTD Total Return: 17%
- Date of Price 52 Week High: June 22, 2018
- Total Return as of February 1, 2018: 26.3%
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.
- Market Cap: $893.2 Million
- YTD Total Return: 6%
- Date of Price 52 Week High: June 22, 2018
- Total Return as of February 1, 2018: 16.4%
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 for the supply of 5M grams in 2018 and Prince Edward Island for the supply $8M-$12M worth of cannabis to the recreational market.
- Market Cap: $579.7. Million
- YTD Total Return: 5.1%
- Date of Price 52 Week High: June 6, 2018
- Total Return as of February 1, 2018: 1.7%
iAnthus Capital Holdings is a cannabis-focused company operating ~275,000 sq. ft. of cultivation and 39 dispensaries across six U.S. states. The Company’s primary asset, GrowHealthy, operates a 200,000 sq. ft. facility and 30 dispensaries in Florida, out of 13 state cultivation licenses and 35 open dispensaries.
- Market Cap: $314.2 Million
- YTD Total Return: 151%
- Date of Price 52 Week High: June 19, 2018
- Total Return as of February 1, 2018: 40.6%
Choom is a Canadian cannabis company, named after a group of cannabis enthusiasts that lived in Hawaii during the 1970’s. The Company is committed to exclusively growing high-grade, handcrafted, strains for the recreational consumer that retains the quality and brand image of 1970’s Hawaii. The Company currently has 4 ACMPR licenses in late stage review, with 2 acquired and 2 under offer. As of July 2018, Choom has approximately 37,300 sq. ft. of greenhouse space with capacity to produce 3,700 kgs of dried cannabis annually. Construction is underway to increase the production platform to 700,000 sq. ft. with a capacity of 7000 kgs by 2021.
- Market Cap: $134.6 Million
- YTD Total Return: 138%
- Date of Price 52 Week High: July 11, 2018
- Total Return as of February 1, 2018: 61.5%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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