The Canada-listed cannabis stocks we’ve weeded out have an average of 43.5% of their shares held by company insiders
SmallCapPower| April 16, 2019: Insiders are defined as any person with access to key company information before it is released to the public. Insiders include individuals such as officers, directors, and relatives. Since insider ownership and trading may cause changes in share prices, government bodies require companies to report this information, giving investors a sense of insider activity within a company. It is important to know which insiders to pay attention to, as insiders with proven track records should be watched more closely for the best insights into a company. The Canada-listed cannabis stocks we’ve discovered have a high amount of insider ownership. Data on insider ownership obtained from S&P Capital IQ.
*Share prices as at April 12, 2019, data obtained from S&P Capital IQ
Ovation Science Inc. (CSE:OVAT) – $0.40
Ovation is a skincare research and development company that provides pharmaceutical-grade topical cannabis products for the medical and recreational global market. Through its patented Invisicare® technology, Ovation develops industry-leading transdermal and topical cannabis products using a licensing/royalty business model. The Company’s Proprietary Invisicare® Technology has a 4-10 times higher transdermal absorption rate of CBD/THC compared with other products. With this technology, Ovation releases 4-10 times more CBD compared with conventional products, giving OVAT the potential for higher efficacy. Ovation has secured license agreements with Canopy Growth in Canada, and Lighthouse Strategies in Nevada for use of its Invisicare® Technology.
- Market Cap: $9.3 Million
- 1-Month Total Return: -2.4%
- YTD Total Return: +33.3%
- Insider Ownership: 36.3%
TILT Holdings Inc. (CSE:TILT) – $2.29
Tilt Holdings is a vertically-integrated infrastructure and technology cannabis company. The Company provides software, infrastructure, financing and additional services to cannabis retailers. The Company is organized in two units: Software & Services and Consumer Devices & Packaged Goods, to deliver end-to-end services and customer solutions. On April 15, 2019, the Company announced preliminary Q4 and year-end financial results, forecasting gross revenue of US$31M in Q4.
- Market Cap: $305.8 Million
- 1-Month Total Return: -17.9%
- YTD Total Return: -33.8%
- Insider Ownership: 29.2%
Eve & Co Inc. (TSXV:EVE) – $0.48
Eve & Co holds cultivation and processing licences for the production and sale of various cannabis products through its wholly-owned subsidiary, Natural MedCo Ltd. Natural MedCo received its cultivation license from Health Canada in 2016 and is Canada’s first female founded licensed producer. The Company’s owns 220,000 sq. ft. of greenhouse production space in Middlesex Country Ontario, with 32 acres of land for future expansion. Eve & Co has recently begun construction of its 780,000 sq. ft. expansion plan, anticipating total greenhouse capacity of 1,000,000 sq. ft. On April 11, the Company announced it has entered into a $10M bought deal with Haywood Securities Inc., which is expected to close on May 10.
- Market Cap: $120.3 Million
- 1-Month Total Return: +28.9%
- YTD Total Return: +75.0%
- Insider Ownership: 45.2%
Cresco Labs Inc. (CSE:CL) – $15.23
Cresco Labs is a vertically-integrated MSO that engages in the cultivation, manufacturing, and retailing of cannabis and related products. The Company’s leading brands include Mindy’s Edibles, Reserve Premium Cannabis, and Remedi Medical. The Company has 21 dispensaries across eight states with 51 retail licenses and 660,000 patients. On March 25, the Company announced it has completed its Michigan State application process and has been pre-qualified for a cultivation and processing license. On April 1, Cresco announced that it would acquire Origin House (CSE:OH) for $1.1B, or 0.8428 Cresco shares per Origin House share, which equals $12.68 per share based on Cresco’s closing price of $15.05 on March 29. This represents a 5.2% premium to Origin House’s closing price of $12.05 on Friday, March 29, 2019.
- Market Cap: $2.1 Billion
- 1-Month Total Return: +31.1%
- YTD Total Return: +86.9%
- Insider Ownership: 63.3%
Ubika Research/SmallCapPower has received compensation from Ovation Science 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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