The Canadian marijuana stocks we’ve dug up with market caps of less than $1B have had the best growth year to date, outperforming some of their larger peers
SmallCapPower | April 1, 2019: Canadian cannabis stocks hit a high on October 15, 2018, after the late 2018 rally that was trigger by Constellation Brands’ (NYSE:STZ) $4B investment in Canopy Growth Corp (TSX:WEED). Following the rally, cannabis stocks sold off and hit a bottom on December 21, 2018. We note that smaller cannabis names are generally more volatile due to their size and lack of liquidity. However, when these names recover, they can experience even greater upside than some of their larger peers. Today we’ve weeded out four Canadian marijuana stocks with market caps under $1B that have seen some impressive year-to-date returns.
*Share prices as at March 27, 2019, data obtained from S&P Capital IQ
SugarBud Craft Growers Corp. (TSXV:SUGR) – $0.145
SugarBud Craft Growers is a Canada-based cannabis company that focuses on growing handcrafted, select batch, ultra-premium bud. The Company is engaged in the development, acquisition, production, and distribution of cannabis. On January 31, the Company announced that it has entered into a strategic relationship with Phylos Bioscience Inc. to work on the characterization of SugarBud’s future strains.
- Market Cap: $51.5 Million
- 7-Day Total Return: -9.4%
- 30-Day Total Return: +81.3%
- YTD Total Return: +123.1%
Eve & Co Incorporated (TSXV:EVE) – $0.52
Eve & Co holds cultivation and processing licences for the production and sale of various cannabis products. The Company received its cultivation license from Health Canada in 2016 and is Canada’s first female-founded licensed producer. The Company 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 March 19, the Company announced that through Natural MedCo it has entered into a credit facility valued at $18.7M with Royal Bank of Canada to fund its greenhouse expansion, at a rate of prime plus 1%, which currently sits at 3.95% annually.
- Market Cap: $121.8 Million
- 7-Day Total Return: -13.3%
- 30-Day Total Return: +65.1%
- YTD Total Return: +116.7%
AgraFlora Organics International Inc. (CSE:AGRA) – $0.69
AgraFlora Organics is a Canada-based cannabis company. The Company has an indoor cultivation facility in London, ON and has a joint venture with Propagation Service Canada that operates a 2,200,000 sq. ft. greenhouse complex in Delta, BC. On March 22, 2019, Organic Flower Investments Group announced that it has completed a strategic investment in AgraFlora Organics, acquiring an additional 44.85M common shares for a cash payment of $20M. Organic Flower Investments has advanced $40M for 89.7M common shares to date. Organic Flower Investments Group Inc. is an investment holdings company that provides financing to early-stage private and public companies. It focuses its investments on the cannabis, bio-medical, pharmaceutical, and naturopathic sectors.
- Market Cap: $306.5 Million
- 7-Day Total Return: -12.7%
- 30-Day Total Return: +115.6%
- YTD Total Return: +200.0%
Khiron Life Sciences Corp. (TSXV:KHRN) – $3.88
Khiron Life Sciences is a Canadian medical cannabis company with operations in Colombia. The Company works with scientific and medical-based research applications for cannabis and currently has an estimated potential market of 6M for patients in Colombia, with an estimated 68M patients throughout Latin America, upon future expansion. On November 27, 2018, the Company announced government approval to commercialize and market its Kuida CBD cosmeceutical product line in Peru. On February 28, the Company announced that it has closed its previously-announced bought deal with total gross proceeds of $28.84M.
- Market Cap: $355.4 Million
- 7-Day Total Return: -4.2%
- 30-Day Total Return: +11.5%
- YTD Total Return: +153.6%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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