The Canadian marijuana stocks on our list are currently among the most-shorted stocks in the Canadian cannabis space
SmallCapPower | July 11, 2019: The cannabis industry is characterized by growth and bullish speculation, with regulations being loosened worldwide. However, many investors do not believe all the hype and have an intuition that the industry is overvalued. On July 8, the Investment Industry Regulatory Organization of Canada (IIROC) released its Consolidated Short Position Report, depicting the most shorted cannabis stocks from the period of June 21, 2019 to July 8, 2019. Today, using this report, we have identified four of the most-shorted Canadian marijuana stocks in that given period.
*Share prices as at close Tuesday, July 9, 2019, data obtained from S&P Capital IQ
Aurora Cannabis Inc. (TSX:ACB) – $9.61
Aurora Cannabis is a licensed producer and distributor of medical cannabis products. Aurora is one of the largest and fastest-growing cannabis companies in the world, with a funded production capacity of over 500,000 kilograms per year. ACB is vertically integrated and horizontally diversified across a variety of cannabis value chain segments. On June 21, Aurora Cannabis announced its plans for an expansion of the consumer cannabis market into vapes, concentrates, and edibles. Through a combination of new and enhanced facilities, Aurora intends to produce new, high-quality products across the country in a variety of product categories.
- Market Cap: $9.7B
- YTD Return: 35.5%
- 90 Day Average Trading Volume: 5,480,000
- Shares Held Short: 34,817,353
- Short Interest Ratio: 3.4x
Canopy Growth Corporation (TSX:WEED) – $51.37
Canopy Growth is the largest cannabis company listed by market cap on the TSX and NYSE. The Company has the largest licensed production platform in Canada, with over 600,000 sq. ft. of production space. The Company has also secured the necessary agreements to export medicinal cannabis to Australia, Brazil, and Germany. On July 10, Spectrum Therapeutics, the medical division of Canopy Growth, announced a partnership with the Canadian Mental Health Association (CMHA). This initiative will see the CMHA, in collaboration with Spectrum Therapeutics, develop an educational content module related to cannabis in the workplace as part of the CMHA’s Not Myself Today workplace mental health program.
- Market Cap: $17.8B
- YTD Return: 30.8%
- 90 Day Average Trading Volume: 2,160,000
- Shares Held Short: 9,049,324
- Short Interest Ratio: 2.6x
Tetra Bio-Pharma Inc. (TSXV:TBP) – $0.28
Tetra Bio-Pharma is a biopharmaceutical multifaceted corporation that focuses mainly on CBD drug discovery & development. The Company runs a clinical trial program that is used to bring new drugs and treatments to patients and healthcare providers. As well, the Company’s subsidiary Tetra Natural Health develops and sells natural health, self-care and hemp energy drink products. The Company is currently conducting clinical trials of PPP001, a smokable, natural medical cannabis for the treatment of chronic pain in cancer patients.
- Market Cap: $50.9M
- YTD Return: -68.5%
- 90 Day Average Trading Volume: 740,000
- Shares Held Short: 7,857,696
- Short Interest Ratio: 4.2x
AgraFlora Organics International Inc. (CSE:AGRA) – $0.37
AgraFlora Organics International is a growth oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London, ON and is a joint venture partner in Propagation Service Canada and its large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. On July 3, AgraFlora Organics announced that the Company has been awarded a license from Health Canada under the industrial hemp regulations of the Cannabis Act at its 2.2M square foot Delta Greenhouse Complex.
- Market Cap: $179.4M
- YTD Return: 32.1%
- 90 Day Average Trading Volume: 2,010,000
- Shares Held Short: 6,940,136
- Short Interest Ratio: 1.4x
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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