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- Pharmadrug stock hit its highest point in nearly two years on February 17, at C$ 0.195.
- It records a year-to-date (YTD) growth of nearly 65 per cent.
- Canadian company MediPharm Labs recently conducted a bought deal offering to raise gross proceeds of about C$ 20 million.
- MediPharm stocks post a YTD price growth of about 12 per cent.
While battling the ups and downs of the coronavirus pandemic last year, one in four adult Canadians reportedly used cannabis at least once. Yes, that’s what a 2020 Commonwealth Fund study, released last week, found! On that ‘high’ note, let’s check out two discounted pot stocks from Canada: Pharmadrug Inc (BUZZ:CNX) and MediPharm Labs Corp (TSX:LABS).
The Commonwealth Fund survey, which compared Canada's health systems to those of 10 other nations, found that 23 per cent of the Canadian population used cannabis in 2020. In comparison, its international peers reported just nine per cent.
But it is not just the usage in the home country that Canadian pot producers are looking at. With the promise of cannabis legalization south of the border still dangling before it, the Canadian pot business is seeking expansion in the US market.
Let’s take a look at Pharmadrug and MediPharm’s recent stock performances.
Pharmadrug Inc (BUZZ:CNX)
Biotech company Pharmadrug focuses its business on medical cannabis and psychedelics. While it is based in Toronto, Pharmadrug has major operations in Germany. Earlier in February, it acquired peer Sairiyo Therapeutics to expand its business model.
Pharmadrug stock hit its highest point in nearly two years on February 17, at C$ 0.195. Although the share has since descended, it still records a year-to-date (YTD) growth of nearly 65 per cent.
The Toronto-based company saw an average of nearly eight million stocks trade hands in the last one month. It currently has a market cap* of about C$ 45.6 million.
©Kalkine Group 2021
MediPharm Labs Corp (TSX:LABS)
Canadian company MediPharm Labs delves in the extraction, distillation and production of derivative pot products, such as cannabis oil. It recently conducted a bought deal offering of 34.5 million units at a price of C$ 0.58 apiece to raise gross proceeds of about C$ 20 million.
MediPharm stocks post a YTD price growth of about 12 per cent, with an average share movement volume of nearly three million for the past 10 days. With a market cap* of about C$ 101 million, the Barrie-based company posts a price-to-book ratio of 0.724 and a debt-to-equity ratio of 0.3.
Earlier in February, MediPharm was awarded the cannabis drug license (CDL) by Health Canada.
*as per TMX