Canadian Marijuana Stocks
Every day, I receive information in my email box about the coming growth in the marijuana business. I’m interested in any future growth companies that could turn into performance tigers like the FANGs: Facebook, Amazon, Netflix, and Google. I want to find the next Philip Morris. The Canadian marijuana sector ranks as one of the hottest growth sectors. There is no ETF featuring marijuana stocks, so here’s a look at Canadian marijuana stocks for investors to consider.
Cannabis Investing News and Jocelyn Aspa and Bryan Mc Govern have compiled a long list of companies that could be big winners in the business. I want to highlight a couple and refer you to their free report INN Insider’s Report on marijuana investing for more information.
Based on my reading these Canadian marijuana stocks are ones to watch:
Canopy Growth (TSX: WEED)
Canopy Growth is, indeed, the largest Canadian marijuana stocks company, having been the first cannabis organization to surpass the $1 billion market cap.
Canopy holds producers Tweed and Bedrocan under its umbrella. Tweed’s production facility is located in the old Hershey factory in Smith Falls, Ontario, while its breeding facility was completed in September 2016. The company believes the state-of-the-art facility is the first of its kind and will form the foundation of new Canadian-bred genetics.
Near the end of May 2016, Canopy Growth announced it would be expanding into Australia through a partnership with AusCann Group Holdings. The company also announced on September 15, 2016, that it launched its first DNA Genetics strain, Lemon Skunk, in its Tweed store. Tweed has also launched a new seed breeding area which will serve as a massive accelerator towards innovating product development and expanding quality and variety.
Mettrum Health, one of the first medical cannabis producers in Canada to be licensed under the Marihuana for Medical Purposes Regulations (MMPR)–now the Access to Cannabis for Medical Purposes Regulations (ACMPR) as of August 24, 2016–is a vertically integrated provider of cannabis products. It operates three facilities in Ontario with an annual production capacity of 12,000 kilograms. Mettrum offers a range of products in both whole-bud and extracts forms.
Under Canopy’s acquisition, in January 2017, Mettrum Health announced it had acquired Bodystream Cannabis Clinic network, which includes 14 medical cannabis clinics located across Ontario.
In April 2017, Canopy Growth announced the launch of its ‘first-in-class’ Craft Grow program, which opens to access in genetics, knowledge and retail infrastructure, and committed to $20 million in seed capital funding.
Aphria (TSX: APH)
Aphria located in Learnington, Ontario, it self-describes itself as “truly powered by sunlight,” which they state allows for natural growing conditions to produce safe medical cannabis products.
Last June, the company announced it expects to more than double its growing capacity—the company’s board approved in September a $24.5 million project increasing its greenhouse square footage from 100,000 to 300,000 square feet, expected to be completed later this year. The company expects that the expansion will be able to bump growing capabilities from 5,500 kilograms to 18,000 kilograms annually.
Aphria is also in the midst of completing its previously disclosed 57,000 square foot Part II expansion, is on target for full crop rotation by June 2017. In early February, the company announced that it moved from the TSX Venture Exchange to the TSX Exchange. A week later, Aphria announced a $50 million bought deal financing.
Putting it simply, 2017 has also been a busy year for Aphria, and with the legalization date set for recreational use, that isn’t about to stop. In April, the company announced it had secured a $100 million raise–$75 million of which will be used for a bought deal equity financing, with the remainder a debt financing through a five-year term loan.
Invictus MD (TSXV: IMH)
Invictus hosts a platform for cannabis, located in Vancouver; the company wants to capitalize on the upcoming cannabis legalization process the federal government is set to take.
This Canadian marijuana stocks company recently brought Acreage Pharms, a licensed producer located in Alberta, under its corporate umbrella.
“[W]e now have 250 acres of cultivation space that stretches from Alberta to Ontario. Acreage Pharms will benefit from a low cost of production as a result of low energy and water costs,” Dan Kriznic, executive chairman of Invictus said in a statement. “Additionally the property is friendly to building as many square feet as required based on the significant demand, which Deloitte reports to be between $4.9 billion and $8.7 billion annually.”
Invictus announced in April 2017 an agreement with Canopy Growth to allow the sale of the product from AB Labs, which was partly acquired by Invictus last year, on the Tweed Main Street’s online store.
Cannabis Wheaton Income (TSXV: CBW)
A fairly new entrant to the Canadian cannabis sector, Cannabis Wheaton, was formed to provide funding for facility expansions, operations, and initial construction. In return, the company gets minority equity interests and a percentage of the cultivation. Their team includes a group of experienced people in the area like the co-founder of Canopy, Chuck Rifici, who is the CEO of Cannabis Wheaton.
According to the CBC, the company already has 16 streaming deals, and four of those include licensed producers: Broken Coast Cannabis, Green Relief, Evergreen Medicinal Supply and Harvest One.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: Jocelyn Aspa and Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Mettrum Health, Naturally Splendid, Maple Leaf Green World, DOJA, Invictus MD, ABcann Global, Weed MD, and Harvest One are clients of the Investing News Network. This article is not paid-for content.