SmallCapPower | April 5, 2018: The Horizon Marijuana Life Sciences Index is down 24% since its peak in January, but is up 12% M/M. As recreational legalization in Canada approaches this summer, the marijuana stocks on our list today have plans to meet the upcoming demand. If the marijuana sector continues its rally, these stocks could see strong returns in both the short and longer term.
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CannTrust Holdings Inc. (TSX:TRST) – $7.00Pharmaceuticals
CannTrust is a Canada-based licensed producer of medical cannabis. The Company's products are sold online and delivered to registered patients. CannTrust's 50,000 square foot production facility, located in Vaughan, Ontario, uses hydroponic technology to produce at an annual capacity of 3,600 KG. Furthermore, CannTrust has set aside a 46-acre property, where it plans to ramp up production capacity with a 430,000-square foot expansion.
Market Cap: $636.7 Million1 Month Total Return: 6.0%3 Month Total Return: 25.9%EBITDA Growth – Next Year/This Year: 2554.5%Peer Average EBITDA Growth – Next Year/This Year: 488.1%MedReleaf Corp. (TSX:LEAF) – $15.74Pharmaceuticals
MedReleaf is a licensed producer of medical marijuana under the ACMPR. MedReleaf currently produces 7,000 KG/year out of a 55,000 sq. ft. facility in Markham. The Company started to produce 5,600 KG/year out of a 210,000 sq. ft. facility in Bradford in October. The Company plans to expand its Bradford facility to reach 28,000 KG/year from it by August 2018. The Company has partnered with Shoppers Drug Mart to sell medical marijuana.
Market Cap: $1,570.0 Million1 Month Total Return: 26.4%3 Month Total Return: 26.1%EBITDA Growth – Next Year/This Year: 1487.6%Peer Average EBITDA Growth – Next Year/This Year: 488.1%Hydropothecary Corp. (TSXV:THCX) – $3.64Pharmaceuticals
Hydropothecary is a licensed producer and distributor of medical marijuana under the Access to Cannabis for Medical Purposes Regulations (ACMPR). With an operational 50,000 square foot facility, Hydropothercary also aims to scale up 250,000-square feet with an expansion that is expected to come online by Q2/2018. Hydropothecary closed a $69M offering of convertible debentures in November to fund its expansion plans.
Market Cap: $651.0 Million1 Month Total Return: 7.1%3 Month Total Return: 35.3%EBITDA Growth – Next Year/This Year: 831.3%Peer Average EBITDA Growth – Next Year/This Year: 488.1%Aphria Inc. (TSX:APH) – $9.95Pharmaceuticals
Aphria is a licensed producer and supplier of medical marijuana under the ACMPR. Aphria's flagship greenhouse production facility is located on a 169-acre property in Leamington, Ontario. The Company currently produces 9,000kg and plans to expand its production facility to add an additional 90,000kg.
Market Cap: $2,080.0 Million1 Month Total Return: -1.2%3 Month Total Return: 18.1%EBITDA Growth – Next Year/This Year: 763.2%Peer Average EBITDA Growth – Next Year/This Year: 488.1%Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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