The Canada-listed U.S. cannabis stocks on our list may experience some volatility as their lock-up periods are expiring soon
SmallCapPower | January 3, 2019: A lock-up period, also known as a lockout period, is a set amount of time following an initial public offering (IPO) in which inside investors are restricted from selling their shares. The period can typically last for four months, but in some cases, could be longer. A lock-up period may have a negative impact on high-growth stocks as they may have more shares coming onto the market. It is important not to fret the end of the lock-up period, as insiders may sell shares of stock to provide themselves with some liquidity for upcoming expenses. Nonetheless, with the lock-up period approaching, some turbulence is to be expected, which may be good for day trading. Today, we have weeded out five cannabis stocks that have lock-up periods that expire soon.
*Share prices are as at close 28-Dec-2018
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Trulieve Cannabis Corp. (CSE:TRUL) -$10.37
Cannabis
Trulieve is a “seed to sale” operation in the state of Florida, with plans to acquire additional facilities outside of Florida in 2019. The Company operates a 507,000 sq. ft facility, yielding 19,500 kg annually. Additionally, Trulieve has expansion plans to add another 127,500 sq. ft, which would increase production by 10,215 kg. TRUL also has a network of 20 dispensaries selling branded products, with a total of 125 stock keeping units (SKUs) and 94,000 patients. Cannabis is currently only legal for medical use in Florida.
*On January 16th, the Company released a press release, stating that the founders have entered into a voluntary lock-up until July 25, 2019.
Lock-up expiry: July 25, 2019
- Lock-up period: 300 days
- % Lock-up Shares: 67.5%
- Pre-public price: $6.00
- Market Cap: $1.2 billion
- Total Return 5-days: +7.9%
- Return Since Trading Debut: +72.8%
- Trading Debut: September 25, 2018
- Lock-up shares: 75,510,694
- Total shares outstanding: 111,724,909
Curaleaf Holdings Inc. (CSE:CURA) – $6.49
Cannabis
Curaleaf Holdings is an integrated medical and wellness cannabis operator in the U.S. It cultivates, processes, markets, and/or dispenses a range of cannabis products in various operating markets, including flower, pre-rolls and flower pods, dry-herb vaporizer cartridges, concentrates for vaporizing, concentrates for dabbing, tinctures, lozenges, capsules, and edibles. As of December 2018, the Company operates a network of 34 dispensaries, 12 cultivation sites, and 10 processing sites in 12 states.
Lock-up expiry: April 27, 2019
- Lock-up period: 180 days
- % Lock-up Shares: 59.4%
- Pre-public price: $11.45
- Trading Debut: October 29, 2018
- Total Return 5-days: +10.0%
- Return Since Trading Debut: – 43.3%
- Market Cap: $3.0 billion
- Lock-up shares: 271,892,149
- Total shares outstanding: 457,632,993
Green Thumb Industries Inc. (CSE: GTII) – $10.22
Cannabis
Green Thumb Industries manufactures and sells various cannabis products in the United States. The Company sells cannabis products with a brand portfolio of over 300 stock keeping units “SKUs” that include products such as dried flower, concentrates for dabbing and vaporizing, edibles, and topicals. As of December 2018, it owned and operated a chain of 73 retail stores under the RISE name across eight states. In November 2018, the Company also acquired two cultivation and processing facilities in Nevada (Desert Farms and Cannabiotix) with a capacity of 95,000 sq. ft. The transaction is expected to close in Q1 2019.
Lock-up expiry: December 10, 2018
- Lock-up period: 180 days
- % Lock-up Shares: 78.1%
- Pre-public price: $7.75
- Trading Debut: June 13, 2018
- Total Return 5-days: – 5.8%
- Return Since Trading Debut: +31.9%
- Market Cap: $1.5 billion
- Lock-up shares: 117,480,830
- Total shares outstanding: 150,408,584
Acreage Holdings, Inc. (CSE: ACRG.U) – $19.60
Cannabis
Acreage Holdings is a multi-state owner of cannabis licenses and assets in the U.S. and has operating licenses in 18 states. The Company takes minority interests in cannabis companies and has the option to roll-up the investments to gain majority ownership. Acreage is dedicated to building and scaling operations to create a seamless, consumer-focused branded cannabis experience.
Lock-up expiry: March 15, 2019
- Lock-up period: 120 days
- % Lock-up Shares: 86.4%
- Pre-public price: $25.00
- Trading Debut: November 15, 2018
- Total Return 5-days: +46.8%
- Return Since Trading Debut: – 21.6%
- Market Cap: $451.9 million
- Lock-up shares: 19,914,869
- Total shares outstanding: 23,056,921
Note: A previous version of this article had stated a lock-up period of 180 days. Based on the recent press release from management we have updated this period to 300 days.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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