- The cannabis market contributed over C$ 9.6 billion to Canada’s GDP in July 2020.
- The top four cannabis producers in Canada account for about C$39 billion in combined market capitalization.
- The TMX group recently shared a list of growth-stage pot firms, which includes the stocks such as 48North Cannabis (TSXV: NRTH), Namaste Technologies (TSXV:N), FluroTech Ltd (TSXV: TEST) and Organigram Holdings (TSXV: OGI).
The cannabis industry is a big booster for the Canadian economy. Though the S&P/TSX Cannabis Index shows a 49.5 per cent year-to-date decline, a recent Statistics Canada report said cannabis sales contributed over C$ 9.6 billion to the country's GDP in July this year. This is a 19 per cent year-over-year climb. The country’s four top pot producers, namely Canopy Growth Corp, Aurora Cannabis Inc, Cronos Group Inc and Aphria Inc, together contribute about C$39 billion in market capitalization. But the big shots aside, there are a few up-and-coming cannabis companies that have been catching investors’ eyes. The TMX Group recently released a list of “10TSX Venture Exchange Cannabis Companies with Plans for Growth” that includes names of pot firms such as 48North Cannabis (TSXV: NRTH), VIVO Cannabis (TSX: VIVO), Namaste Technologies (TSXV:N), FluroTech Ltd (TSXV: TEST), Organigram Holdings (TSXV: OGI),etc.
Let us take a detailed look at these cannabis stocks:
48North Cannabis (TSXV:NRTH)
Current Stock Price: C$ 0.15
48North Cannabis, a vertically integrated weed producer in Canada, recently received the required license for its drying facility from Health Canada. It also signed an agreement with US-based company Arbor Pacific Inc for vaporizer cartridges in September.
Based in Toronto, the company plans to expand its production space by 200,000 square foot for the medical cannabis products it is set to develop with pot firm DelShen Therapeutics. Back in June, it launched a pressed-hashish product in British Columbia, which it has since released in other provinces.
The company recorded a 56 per cent year-to-date (YTD) decline in its stock price, but it climbed nearly seven per cent in the last six months. It is currently ranked high on the TSXV among junior cannabis stocks.
In its third quarter ending on 31 March 2020, 48North Cannabis saw a revenue of C$ 2.8 million, up from C$ 689,203 in Q3 2019.
Data Source: TMX Group/Image Credit: © Kalkine Group
Based in Napanee, Ontario, VIVO Cannabis has businesses across Canada, Germany, and Australia. Currently producing 625 kilograms of cannabis annually, the company plans to expand its operations further by building a 100,000 square foot facility. VIVO Cannabis has also launched an online store recently.
VIVO Cannabis traded on the TSXV until January 2020, before graduating to the Toronto Stock Exchange.
The stocks fell 12 per cent in the last six months and also recorded a 12 per cent decline YTD.
In its second quarter ending 30 June 2020, it saw a net revenue of C$ 9.4 million.
Namaste Technologies (TSXV:N)
Current Stock Price: C$ 0.24
Namaste Technologies aimsto be the one-stop online shop for all cannabis products. It also has a mobile app called NamasteMD, where licensed producers can sell medical marijuana products to patients. CannMart Inc, a sales-only licensed cannabis producer in Canada, is a subsidiary of Namaste Technologies.
Shares of Namaste Technologies slid 12 per cent in the last six months and about 19 per cent YTD. However, it is currently trending high on the TSXV among junior cannabis and junior consumer goods stocks.
The pot company recorded a 73 per cent year-over-year (YoY) increase in its net revenue of C$6.9 million in its second quarter ending 31 May 2020. Its subsidiary CannMart’s net revenue surged about 1500 per cent YoY, amounting to over C$2.3 million (excluding excise tax).
Organigram Holdings (TSXV:OGI)
Current Stock Price: C$ 1.37
Founded in 2013, Organigram Holdings manufactures medical and adult-use recreational cannabis. The company is working with New Brunswick Department of Post-Secondary Education, Training and Labouras well as le Collège Communautaire du Nouveau-Brunswick (CCNB) to come up with Canada’s first commercial cannabis cultivation technician program.
On September 17, Organigram Holdings launched its new pre-shredded dried flower product called SHRED.
Shares of Organigram Holdings declined by 47 per cent in the last six month and 57 per cent YTD. The company also saw its net revenue drop to C$ 18 million in its third quarter ending 31 May 2020, from C$ 24.7 million in Q3 2019.
FluroTech Ltd (TSXV: TEST)
Current Stock Price: 0.245
Based in Calgary, Alberta, FluroTech Ltd focuses on the technology of cost-effective ways to test cannabis. Its products include CompleTest, which is used to measure specific contents in cannabis products.
FluroTech Ltd is currently ranked high among trending junior cannabis and health care stocks on the TSXV. Its shares saw an impressive climb of 188 per cent in the last six months and a substantial 47 per cent YTD.
The surge in its stock price came after FluroTech Ltd announced the “successful function” of its real-time, saliva-based immunoassay for detecting COVID-19 infection in September. The product was formed through an agreement with Alberta BioPhotonics Inc and Albany Medical College.