An exclusive supply agreement with PAX Labs should give the Canadian marijuana stocks on our list an edge in the emerging cannabis vaporizer market
SmallCapPower | June 18, 2019: Today we have discovered four Canadian marijuana stocks that have entered into an exclusive agreement with PAX Labs Inc. PAX Labs, a cannabis vaporizer company that offers quality, control and predictability with its pen-and pod system, announced its exclusive partnership with four Canadian cannabis producers on June 7, 2019. PAX has sold more than 500,000 Era devices for oil concentrations and more than one million devices in the flower vaporizer category globally. With the agreement, Organigram, Aphria, Aurora Cannabis, and The Supreme Cannabis Company should be able to offer products from their various brands in pods compatible with the PAX Era device. PAX Era will be available in Canada later in 2019.
*Share prices as at close June 14, 2019, data obtained from S&P Capital IQ
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Aurora Cannabis Inc. (TSX:ACB) – $10.13
Cannabis
Aurora Cannabis is based in Edmonton, Alberta and currently at its 15 production facilities has a funded capacity that exceeds 625,000 kg per annum. Aurora is a vertically-integrated and horizontally-diversified company that has operations that include facility engineering and design, cannabis breeding and genetics research, cannabis and hemp production, derivatives, home cultivation, retail distribution and wholesale. The Company has operations in 24 countries and has 40 clinical studies underway or completed, which have helped over 77,000 medical patients. On May 9, 2019, Aurora announced that its wholly-owned subsidiary, Aurora Deutschland, was selected by the Luxembourg Health Ministry as the exclusive supplier in a public bid to source a second delivery of medical cannabis to Luxembourg. On May 14, 2019, Aurora announced its Q3 2019 financial results, which showed the cash cost to produce per gram had decreased by 26% to $1.42 per gram, as a result of Aurora Sky’s scale and efficiency.
- Market Cap: $10,300.7 Million
- YTD Return: 49.4%
- 30-Day Average Trading Volume (1,000s): 4,853
- 90-Day Average Trading Volume (1,000s): 7,845
Aphria Inc. (TSX:APHA) – $9.11
Cannabis
Aphria produces and sells medical and recreational cannabis in Canada. It utilizes 1,100,000 sq. ft. for cultivation in Canada and has 115,000kg of annualized Canadian production. Aphria currently is in a five-year supply agreement with Shoppers Drug Mart to provide the Company with medical marijuana. The Company completed its first shipment to Shoppers on January 8, 2019. Aphria currently has supply agreements with all Provinces and the Yukon, and has operations in Germany, Italy Malta, South America, Lesotho and Australia. APHA announced it finished the German tender process and gained the fifth cultivation license in Germany. Aphria is building an indoor grow facility in Neumünster that is over 86,111 sq. ft and is currently working on a GMP-certified cannabis vault in Bad Bramstedt for the import of cannabis flowers and oil from Canada, Australia, and Denmark.
- Market Cap: $2,284.0 Million
- YTD Return: 16.1%
- 30-Day Average Trading Volume (1,000s):3,020
- 90-Day Average Trading Volume (1,000s): 2,968
The Supreme Cannabis Company, Inc. (TSX:FIRE) – $1.61
Cannabis
The Supreme Cannabis Company is based in Canada and focuses on selling to the wholesale sector for the medical cannabis market in Canada. 7ACRES, Supremes’ subsidiary, has a 440,000 sq. ft. cultivation facility outside of Toronto. On May 13, 2019, the Company announced its Q3 2019 financial results, which showed net revenue of $10 Million, which is a 382% increase from $2.1 Million in Q3 2018 and a 29% increase from $7.7 Million in Q2 2019. On May 16, 2019, the Company announced that it has entered into a definitive arrangement agreement with Blissco Cannabis Corp. which will allow Supreme to acquire Blissco, a premium wellness cannabis company, by way of a court-approved plan or arrangement. The approximate value of this deal is $48 Million.
- Market Cap: $473.5 Million
- YTD Return: 22.0%
- 30-Day Average Trading Volume (1,000s): 429
- 90-Day Average Trading Volume (1,000s): 648
Organigram Holdings Inc. (TSXV:OGI) – $8.44
Cannabis
In Moncton, New Brunswick, Organigram has a production and R&D facility, which consists of two buildings on 14 acres of land. The Company has 480,000 sq. ft of production space at full build out. Organigram currently has distribution agreements with all 10 provinces. On May 29, 2019, Organigram announced it had recently shipped more than 130,000 units of pure CBD oil for markets across Canada. On May 31, 2019, Organigram announced it had received an organic certification for recreational cannabis from Pro-Cert Organic Systems Ltd.
- Market Cap: $1,304.7 Million
- YTD Return: 76.7%
- 30-Day Average Trading Volume (1,000s):1,002
- 90-Day Average Trading Volume (1,000s): 1,469
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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