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While the Canadian cannabis industry continues to evolve and expand, the United States cannabis industry continues to be attacked by members of Trump’s administration.
For this reason, the massive inflow of capital in the Canadian cannabis industry makes perfect sense. Companies levered to this opportunity have taken advantage of the capital pouring in and have been executing quickly to build on their lead over the US and countries with legal cannabis programs (i.e. Australia, Germany, and Colombia).
The Canadian cannabis sector has come well off its 2017 highs and we think this pullback has created a great opportunity for the following companies:
- Canopy Growth (WEED.TO) (TWMJF) which has cannabis operations in Canada, Germany and Australia, and is well positioned to take advantage of a burgeoning global opportunity. Canopy Growth has the largest market share of the Canadian cannabis industry and it has the capital to continue to grow through organic and inorganic initiatives.
- Aurora Cannabis (ACB.V) (ACBFF) also has a global presence and the company has made several strategic partnerships, investments, and acquisitions so far this year. Aurora has one of the strongest balance sheets and it is currently working on the building of a massive new facility.
- Emblem Cannabis (EMC.V) (EMMBF) is very different from its peers and is also focused on the biotech side of the cannabis industry. Emblem is led by a top-notch management team that is focused on creating value for shareholders through the sale of medical and recreational cannabis and by developing pharmaceutical products derived from cannabis.
An Industry that Continues to Execute
The Canadian cannabis industry continues to progress rapidly ahead of the country’s plan to legalize recreational cannabis in 2018 and we want to highlight three company developments reported earlier this week.
Yesterday, WeedMD Inc. (WMD.V) edged higher after the company announced that it will begin selling cannabis clones to patients registered for home grow under the ACMPR. WeedMD will initially offer several strains and plans to increase the number of strains offered based on customer feedback.
After reporting an important development last week, Tetra Bio-Pharma (TBP.CN) (TBPMF) and The New Brunswick Health Research Foundation announced that it would be investing a combined $1 million over five years to establish a Health Research Chair in Cannabis at the University of New Brunswick (UNB). The chair will focus on the study of biochemistry, medicinal use and pharmacology of cannabis. This research will expand UNB’s commitment to research and innovation in the field of natural product and biomedical, health and life sciences – adding to its reputation as a leader in natural products’ research.
Health Canada continues to work through new and existing ACMPR applications and yesterday, Cannabis Wheaton (CBW.V) (KWFLF) announced that its partner, Sundial Growers was granted a cultivation license under the ACMPR for its facility located near Airdrie, Alberta. Sundial is the company’s seventh licensed producer partner and has 1 of 3 licenses in Alberta, which is now the third province to have a Cannabis Wheaton partner with a license. Cannabis Wheaton’s interim streaming agreement with Sundial contemplates an aggregate contribution of up to $29 million to fund the construction of Sundial’s facility.
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