Canada’s marijuana sector has been the capital markets story of 2016. One memorable milestone happened earlier this month, when Canopy Growth Corp (TSX:CGC) became the country’s very first billion dollar cannabis stock.
While Canopy is clearly one of the early leaders in the nascent industry, it was far from the only success story. Names like Aphria (TSX:APH), Mettrum Health (TSX:MT), and Aurora Cannabis (CSNX:ACB) all piled on the gains in 2016.
The recent frenzy in marijuana stocks has led some to think the bubble is soon to pop on the sector, after all, it’s hard to find any left that aren’t trading for at least a few dollars, regardless of their sometimes suspect balance sheets.
The truth is, it is hard to find potential bargains in the cannabis space. Hard, but not impossible. We count down five Canadian marijuana stocks that are still trading under fifty cents. Keep in mind, with reward comes attendant risk: these are, in most cases, very early stage companies that have not generated any revenue at all. The stocks below are sorted by market capitalization, from high to low.
1. Golden Leaf Holdings (CSE: GLH)
Price on November 25, 2016: $0.45
Market Cap: $45.11-miilion
Oregon-based Golden Leaf Holdings is focused on cannabis oils. The company sees a lot of runway in the state, noting that both Marijuana Business Daily and its Marijuana Business Factbook 2016 forecasts have Oregon’s cannabis market reaching $180 to $200 million by the end of 2016.
2. Nutritional High (CSE:EAT)
Price on November 25, 2016: $0.30
Market Cap: $42.58-million.
Toronto-based Nutritional High, as its ticker symbol implies, is a company with a focus on edibles. It looks develop, acquire, and design merchandise as well as brands that produce marijuana oil extracts and marijuana infused edible products. The company recently shored up its balance sheet with a $5.5-million injection, something it says is earmarked for growth.
“The demand for this financing has exceeded our expectations and we appreciate the vote of confidence from our shareholders and the investment community. This financing will allow us to continue aggressively with our expansion and acquisition plans through the Western United States,” said Nutritional High Chairman David Posner recently.
3. Tinley Beverage Company (CSE:TNY)
Price on November 25, 2016: $.375
Market Cap: $17.4-million
Tinley Beverage Company produces hemp infused supplements as well as beverages. The company holds the only patent for liquid supplements which contain certified phytoconstituent-rich hemp oil. Tinley, which produces its product in Los Angeles and distribute along the West Coast, was recently named a Top 25 cannabis stock by CannaInvestor Magazine.
“Cannabis-infused beverages represent a significant market opportunity given consumers are accustomed to becoming ‘intoxicated’ via beverages,” explained Louis Kyron, contributing writer for CannaInvestor Magazine. “Tinley’s management team has significant experience in the beverage industry and have already proven an ability to launch and market Hemplify, a drinkable health product in the emerging hemp stalk extract category. In addition to creating an attractive opportunity in the fast-growing mainstream functional beverage industry, Tinley’s Hemplify launch has resulted in the creation of a distribution network and team for the company’s cannabis-infused beverages.”
4. Tetra Bio-Pharma Inc (CSE:TBP)
Price on November 25, 2016: $0.26
Market Cap: $14.56-million
Gloucester, Ontario’s Tetra Bio-Pharma, until very recently known as Grow Pros, is looking to develop cannabis-based products for the treatment of pain. The company’s wholly-owned subsidiary, PhytoPain Pharma, thinks a prescription drug that can be smoked and is backed by the scientific research and development of pharma industry is a winner. “By implementing this approach, we believe that PPP is addressing the missing link that has existed for years as the major barrier of access to medical cannabis by both patients and physicians across the globe”, commented Ryan Brown, Tetra’s Vice-President of Business Development.
5. Wildflower Marijuana (CSE:SUN)
Price on November 25, 2016: $0.285
Market Cap: $12.74-million
Vancouver’s Wildflower Marijuana is a cross-border story, working in nearby Washington state, which in 2012, along with Colorado, voted to legalize marijuana for adults over the age of 21. Wildflower sells branded, disposable vaporizers which it says allows for a clean vaporization experience of its all natural oil blends.