SmallCapPower | July 23, 2018: The Canadian cannabis industry is dominated by large-scale producers such as Canopy Growth Corp. (TSX:WEED, NYSE:CGC) and Aurora Cannabis Inc. (TSX:ACB). However, many smaller companies have largely flown under the radar of analysts and media, leaving investors with a dearth of information compared to the majors. A significant drawback has been the lack of coverage around companies that have already produced operating results and thus present a compelling investing opportunity when compared to others that are still in the ramp-up phase. The Canadian marijuana stocks on our list today include smaller cannabis companies (less than $100M market cap) that have at least two quarters of reported revenue and no analyst coverage.
Friday Night Inc. (CSE:TGIF) – $0.41
Friday Night Inc. operates cannabis and hemp-based assets in Las Vegas, Nevada. The Company owns 91% of Alternative Medicine Association, LC, a licensed cultivator, producer and developer of cannabis-based products. The Company also has a 91% stake in Infused MFG, a hemp-based CBD producer. Friday Night has a 12,000 sq. ft. cultivation and production facility and a 5,000 sq. ft. CBD infused production facility. The Company plans an expansion of 67,000 sq. ft. and has already purchased more 5 acres of land in Las Vegas for future expansion.
- Market Cap: $93.6 Million
- Revenue: Most Recent Fiscal Quarter (FQ-0): $3,317,500
- Revenue: Fiscal Quarter Before Most Recent (FQ-1): $2,962,700
Wildflower Brands Inc. (CSE:SUN) – $0.97
Wildflower Brands is a Vancouver-based cannabis company focused on developing and designing branded cannabis products. The Company produces both CBD and THC products, employing a vertically-integrated business model that includes R&D, manufacturing, distribution, marketing and retail. It sells its CBD+ branded products online and to more than 200 retailers throughout the U.S. Its THC products are marketed and sold in regulated cannabis jurisdictions. In August 2017, Wildflower acquired King Extracts, a California based company focused on cannabis technology and delivery systems. As of June 2018, Kind branded products were available in 26 retail locations in California.
- Market Cap: $61.4 Million
- Revenue: Most Recent Fiscal Quarter (FQ-0): $917,910
- Revenue: Fiscal Quarter Before Most Recent (FQ-1): $748,770
RavenQuest Biomed is a Canada-based diversified cannabis company with divisions focused on cannabis production, management services and consulting and specialized research & development. The Company offers integrated solutions to companies in the cannabis industry such as growing and drying technologies, patient and genetic management systems, and security management solutions. The investment division of RavenQuest has been purchasing and expanding cannabis production facilities with an anticipated total capacity of 50,000 kg/annum.
- Market Cap: $45.4 Million
- Revenue: Most Recent Fiscal Quarter (FQ-0): $614,360
- Revenue: Fiscal Quarter Before Most Recent (FQ-1): $611,400
True Leaf is a Canadian cannabis company in the final stages of the approval process to become a licensed producer. The Company operates via two separate divisions: True Leaf Med, and True Leaf Pet. True Leaf Med is the main cannabis production and distribution arm of the company. It is currently constructing a cultivation facility in Lumby, British Columbia with an expected completion date of fall 2018. Once completed, the facility will be inspected by Health Canada as part of the final licensing process. The Company’s other division, True Leaf Pet, is a pet-focused producer of hemp-based products. It currently produces hemp-seed based supplements, chews, dental sticks and hemp oils that can be found in more than 1,800 stores across North America and Europe.
- Market Cap: $49.9 Million
- Revenue: Most Recent Fiscal Quarter (FQ-0): $365,530
- Revenue: Fiscal Quarter Before Most Recent (FQ-1): $268,230
Mym Nutraceuticals is a Canada-based company engaged in building three production facilities in both Canada and Australia. The Quebec-based Weedon Project includes a cannabis museum and a cannabis university for industry training. The Laval Project is based on manufacturing THC and CBD products across Canada and the United States. Its Northern Rivers Project is engaged in the production of cannabis in New South Wales, Australia. Its MJT Manufacturing Project, located in Toronto, is focused on the production of CBD extracts and isolates. The Company’s portfolio brands include CBD products such as HempMed, Joshua Tree and Dr. Furbaby.
- Market Cap: $149.9 Million
- Revenue: Most Recent Fiscal Quarter (FQ-0): $477,580
- Revenue: Fiscal Quarter Before Most Recent (FQ-1): $398,080