The Canadian marijuana stocks we’ve weeded out have returned an average of 21.2% over the past week but may not be well known to the average investor
SmallCapPower | December 10, 2018: Last week Quintessential Capital Management and Hindenburg Researched released a short-seller report on Aphria Inc. (TSX:APHA) that sent the stock tumbling 34% between December 3 – 5. On Friday, we identified three cannabis stocks that were significantly over sold and could be primed for a rebound. Cannabis equities did rebound on Thursday with Aphria regaining over 50% and the HMMJ Marijuana index (TSX:HMMJ) climbing 13% by the closing bell. Today, we’ve discovered three Canadian marijuana stocks that might have snuck under the radar but have realized strong returns in the past week.
Note: Metrics are calculated by closing prices as at December 6, 2018.
48North Cannabis Corp. (TSXV:NRTH) – $0.68
48North Cannabis is a Canada-based company focused on the production and distribution of cannabis-infused products. The Company develops CBD/THC infused products specifically designed to target the women’s health and wellness market. Product offerings include: food, beverage, cosmetics and skincare products. 48North produces at a rate of 2,500 kg/year from its 40,000 sq. ft. indoor facility. In the future, the Company predicts annual production of 42,500 kg/year following the development of a 200,000 sq. ft. greenhouse. On December 4, 2018, the Company announced it had entered into two agreements with Canopy Growth Corporation (TSX:WEED), including a strategic investment financing and a supply agreement. As per the supply agreement, 48North will supply Canopy Growth with a minimum of 1,200 kilograms of dried cannabis over the course of 12 months. Under the financing agreement, WEED will invest $3M into 48North in return for 4,000,000 common shares at $0.75 per share.
- Market Cap: $55.2 Million
- Dec 5 – 7 Return: 7.94%
- 1-Week Total Return: 44.7%
- YTD Total Return: -25.27%
- Average Daily Volume (3 Month Average): 370,000
Valens Groworks Corp. (CSE:VGW) – $1.47
Valens Groworks is a Vancouver-based cannabis oil producer with three subsidiaries in the Okanagan Valley region: Valens Agritech Ltd, Valens Farm and Supra THC Services Inc. Valens Agritech operates a 25,000 sq. ft. cannabis extraction and cultivation facility and holds an EU GMP certification for global exporting. Valens Farms will operate a 400,000 sq. ft. cannabis cultivation facility that grows cannabis through monocropping methodology to increase annual crop turnover. Supra THC Services operates a cannabis research laboratory that will be responsible for testing and analyzing the quality of Valens’ cannabis products. Supra THC is the first cannabis laboratory in the world to receive the Thermo Fisher “Center of Excellence in Plant Based Medicines” recognition.
- Market Cap: $137.0 Million
- Dec 5 – 7 Return: 18.6%
- 1-Week Total Return: 20.5%
- YTD Total Return: -49.7%
- Average Daily Volume (3 Month Average): 540,000
National Access Clinic Corp. (TSXV:META) – $0.60
National Access Clinic (NAC) owns and operates clinics in Canada, providing cannabis educational services and medical cannabis products through its retail network. NAC has partnered with health professionals to provide patrons with expert advice to improve their quality of life at over 17 locations across Canada. In April 2018, the Company formed a strategic partnership with Second Cup Ltd (TSX:SCU) to leverage the coffee chain’s extensive network to develop NAC-branded recreational cannabis dispensaries across Western Canada. On December 3, 2018, NAC announced that it had acquired 100% of a minority interest in NAC Northern Alberta GP and NAC Northern Alberta Limited Partnership in exchange for the forgiveness of a $192,702 debt and the issuance of 2,174,913 shares at a price of $0.69 per share. The acquisition gives NAC 100% ownership of all non-Second Cup cannabis locations in northern Alberta, aligning well with the Company’s strategy of acquiring highly-prospective areas in Alberta.
- Market Cap: $110.1 Million
- Dec 5 – 7 Return: 20.0%
- 1-Week Total Return: -1.64%
- YTD Total Return: -7.69%
- Average Daily Volume (3 Month Average): 400,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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