Canadian Marijuana Stocks with the Biggest Short Positions

Some investors think the Canadian marijuana stocks on our list are ripe to fall as they have the greatest short interests in the sector

SmallCapPower | June 6, 2018: The cannabis industry is booming as recreational legalization is fast approaching in Canada. However, some investors are betting against big names such as Aurora Cannabis (TSX:ACB). Today, we have weeded out some Canadian marijuana stocks that have the greatest short interest as a percentage of float. This is calculated by dividing the total amount of shares being sold short (betting the price will decline) by the total amount of shares on the market. This ratio is useful for gleaning market sentiment about whether or not a stock’s price will rise or fall.

For Our Complete Coverage Of Canadian Marijuana Stocks Click Here   

Read: Canadian Cannabis Stocks That Are Top Takeover Targets  

WeedMD Inc. (TSXV:WMD, OTC:WDDMF) – $1.72

WeedMD is a Canada-based licensed producer of medical marijuana. It operates a 26,000 square foot production facility in Aylmer, Ontario and recently leased a 395,000 square foot greenhouse. The Company expects to increase its production capacity to over 33,000 kg/year (1,500 kg/year currently) by the end of 2018. Its products include: Dried Cannabis, Cannabis Extracts and Cannabis Vaporizes. On April 19, 2018, WeedMD announced that it had reached a deal to merge with Hiku Brands (CSE:HIKU), a retail-focused cannabis company.

  • Market Cap: $191.0 Million
  • Short Interest as % of Float: 6.2%
  • YTD Total Return: -29.8%

Emerald Health Therapeutics Inc. (TSXV:EMH, OTCQX:EMHTF) – $4.25

Emerald Health Therapeutics is a Canada-based company engaged in the medical marijuana industry. The Company operates an indoor cultivation facility in Victoria, British Columbia, and intends to expand into additional greenhouses. Emerald estimates its 2020 capacity to be as much as 71,000 kg/year. The Company also offers analytical testing of cannabis through an interest in Northern Vine Canada Inc.

  • Market Cap: $575.4 Million
  • Short Interest as % of Float: 5.3%
  • YTD Total Return: -18.4%

Aurora Cannabis Inc. (TSX:ACB) – $8.18

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.

  • Market Cap: $4,591.7 Million
  • Short Interest as % of Float: 3.8%
  • YTD Total Return: -14.8%

Invictus MD Strategies Corp. (TSXV:GENE, OTC:IVITF, FSE:8IS1) – $1.71

Invictus MD Strategies is a Canada-based company licensed to produce medical cannabis under the ACMPR. As of 2018, Invictus estimates its production capacity to be 27,000 kg/year. The Company has outlined plans to reach 98,000 kg/year capacity by the end of 2019, following the expansion of its facility to 825,000 square feet. KISS front man, Gene Simmons, is involved with Invictus as its Chief Evangelist Officer.

  • Market Cap: $160.0 Million
  • Short Interest as % of Float: 3.1%
  • YTD Total Return: 7.5%

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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