The Canada-listed cannabis stocks on our list have suffered the most so far in 2019
SmallCapPower | April 23, 2019: The year 2019 began with a strong start for cannabis stocks. The Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ) rose to $23.65 on March 19, 2019 from $13.35 on December 31, 2018, an increase of 65%. However, the ETF recently gave back some of those gains, falling to $20.18 on April 18, 2019, a 15% decrease. The key catalyst driving the recent slump in share prices is the poor financial performance amongst Canadian cultivators. Many major banks, including BMO, Scotiabank, and Cowen, have cut their revenue estimates, citing supply issues and lower retail selling prices. Today we have uncovered four Canada-listed cannabis stocks that have badly underperformed the rest of the sector.
*Share prices as at April 18, 2019, data obtained from S&P Capital IQ
MJardin Group, Inc. (CSE:MJAR) – $2.59
MJardin Group has 34 cultivation, processing, and retail facilities across the U.S. and Canada. With 10 years of “seed-to-sale” experience and 465,000 sq. in operation/under development and a 55,000 kg production capacity per year, the Company is targeting yields of 340 grams/sq. ft across all its cultivation facilities. On April 22, MJardin announced that it plans on acquiring Cannabella, a Nevada-based operator of an extraction facility and producer of edibles and topicals. This follows an announcement on April 18, when the Company announced that its Atlantic facility has reached full production capacity at 4,700 kg of biomass per year.
- Market Cap: $231.8 Million
- YTD Return: -51.8%
- 30-Day Average Trading Volume: 165,000
- 90-Day Average Trading Volume: 107,000
Namaste Technologies Inc. (TSXV:N) – $0.55
Namaste Technologies is an international cannabis eCommerce company operating across 20 countries, which utilizes machine learning to provide patients access to medical cannabis products. Through NamasteMD.com, the Company’s integrated telemedicine application, Namaste connects patients with healthcare practitioners to provide them with online medical cannabis prescriptions. The Company’s wholly-owned subsidiary, CannMart, has received its ACMPR medical cannabis ‘sales only’ license from Health Canada, giving the Company access to sell medical cannabis online within Canada. On March 7, the Company announced the resignation of two directors. On March 18, Namaste’s announced the resignation of PwC as the Companies’ auditor. Following the release, a Management Cease Trade Order (MCTO) was also announced, which prohibits management from trading securities until a new auditor is found. For the MCTO to be lifted, the new auditor must complete the annual audit, and the annual filings need to be filed.
- Market Cap: $168.9 Million
- YTD Return: -36.3%
- 30-Day Average Trading Volume: 1,205,000
- 90-Day Average Trading Volume: 3,452,000
DionyMed Brands Inc. (CSE:DYME) – $2.82
DionyMed is a U.S.-based multi-state cannabis brands platform, that supports cultivators and manufacturers to navigate through the medical and adult-use markets. DionyMed started in the cannabis industry by manufacturing vape cartridges for the adult-use market in California. Since then, the Company has expanded from manufacturing into distribution. Currently, DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. The Company serves more than 700 dispensaries and operates a delivery service, which delivers to 40,000 customers each month. On April 17, DionyMed announced that it had signed a multi-state distribution license for Virginia’s Kitchen – Blue Kudu edibles.
- Market Cap: $36.5 Million
- YTD Return: -26.8%
- 30-Day Average Trading Volume: 174,000
- 90-Day Average Trading Volume: 96,000
Tetra Bio-Pharma Inc. (TSXV:TBP) – $0.62
Tetra Bio-Pharma is a biopharmaceutical company focused on cannabinoid-based drug discovery and development. On February 7, the Company announced a change in its Drug Development Plan and is planning on focusing on ophthalmology (eye disorders: uveitis, corneal neuropathic pain & dry eyes) and dermatology (osteoarthritis, shingles & joint pain). The new strategic direction comes after the Company announced a six-month delay in clinical trials of PPP001, a smokable, natural medical cannabis for the treatment of chronic pain in cancer patients, due to contamination in biomass mass sourced from Aphria (TSX:APHA). On April 18, Tetra Bio-Pharma announced that its shareholders had approved the Company’s acquisition of Panag Pharma. The acquisition is expected to provide Tetra Bio-Pharma with a more robust pharmaceutical and natural healthcare products pipeline.
- Market Cap: $103.4 Million
- YTD Return: -20.7%
- 30-Day Average Trading Volume: 361,000
- 90-Day Average Trading Volume: 653,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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