The Canadian marijuana stocks we’ve identified have made substantial gains in the past month while also significantly increasing trading volume
SmallCapPower | November 30, 2018: October marked a massive selloff of cannabis stocks as evident by the Horizons Marijuana Growers ETF (TSX:HMMJ) dropping by over 24% in a month. Over the past month, though, the cannabis market has somewhat stabilized and HMMJ has similarly gained 4.1%. Today, we have dug up four Canadian marijuana stocks with the biggest stock-price gains since the selloff. These companies have seen a minimum 20% increase in their average daily volume while significantly outperforming HMMJ with average returns exceeding 26%. Note: All metrics reflect closing prices as at November 28, 2018.
Cannex Capital Holdings Inc. (CSE:CNNX) – $0.99
Cannex Capital Holdings is a Canada-based company with cannabis operations in Washington and California. Cannex is focused on premium indoor cultivation, extraction, manufacturing and branding of edible and derivative products, as well as retail operations. The Company’s subsidiary, BrightLeaf Development LLC, is the largest producer/processor in Washington State. On November 26, 2018, the Company announced that it had signed an interim agreement to combine with 4Front Holdings, a cannabis retail and brand development company, in an all-stock deal. Subject to approval, the newly-established company will continue to trade on the CSE under Cannex’s ticker symbol CNNX.
- Market Cap: $181.9 Million
- 1-Month Total Return: 62.3%
- Average Daily Volume (1 Month Average): 0.33 Million
- Average Daily Volume (3 Month Average): 0.27 Million
Khiron Life Sciences Corp. (TSXV:KHRN) – $1.44
Khiron Life Sciences is a Canadian medical cannabis company with operations in Columbia. The Company is focused on scientific and medical-based research applications for cannabis. Khiron estimates a potential market of 6M for patients in Columbia, with the intention of targeting an estimated 68M patients throughout Latin America upon future expansion. On November 27, 2018, Khiron announced government approval to commercialize and market the Company’s Kuida CBD cosmeceutical product line in Peru. This exposes the Company’s Kuida line to a Peruvian population of 32 million people and strategically positions the Company to expand into the estimated US$110 Billion Latin American beauty care market.
- Market Cap: $94.2 Million
- 1-Month Total Return: 13.4%
- Average Daily Volume (1 Month Average): 1.2 Million
- Average Daily Volume (3 Month Average): 0.84 Million
Origin House (CSE:OH) – $7.90
Origin House, formerly CannaRoyalty Corp, is a Canada-based investor within the legal cannabis industry in the United States and Canada. The Company acts as a venture capital and management consulting platform that helps cannabis companies reach their full potential. It provides upfront equity and debt capital to licensed cannabis businesses and provides an investment in the form of a secured convertible debt where a royalty or direct equity interest is not ideal. The Company’s investments target prospects with promising R&D or IP, brand development and distribution infrastructure. On November 22, 2018, the Company announced a strategic partnership with Heritage Holding of California (Henry’s Original), a cannabis producer specializing in pre-rolls and pure flower products. The partnership will provide Origin House the exclusive rights to distribute Henry’s Original-branded products.
- Market Cap: $464.7 Million
- 1-Month Total Return: 19.3%
- Average Daily Volume (1 Month Average): 0.5 Million
- Average Daily Volume (3 Month Average): 0.4 Million
Curaleaf Holdings Inc. (CSE:CURA) – $7.25
Curaleaf Holdings is a vertically-integrated cannabis company operating in 10 states across the United States, including Arizona, Connecticut, Florida, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York and Oregon. Additionally, the Company is currently in the process of acquiring licenses to sell cannabis in the states of California and Pennsylvania. In October, Curaleaf listed on the Canadian Securities Exchange (CSE) and completed the largest cannabis equity financing to date, raising approximately US$400 million. On November 21, 2018, the Company announced the product launch of Curaleaf Hemp, a hemp-based CBD product line consisting of cannabis vehicles, including drops, lotions, soft-gel capsules and disposable vape pens.
- Market Cap: $2,317.8 Million
- 1-Month Total Return: 11.5%
- Average Daily Volume (1 Month Average): 2.1 Million
- Average Daily Volume (3 Month Average): 0.95 Million
Ubika Research/SmallCapPower has received compensation from Cannex Capital Holdings Inc. to provide analyst research coverage. For full disclosure please visit here >>
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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