|Bid||7.90 x 0|
|Ask||7.92 x 0|
|Day's Range||7.19 - 7.93|
|52 Week Range||1.90 - 15.20|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||10.88|
On May 16, CannTrust (CNTTF) dropped almost 8.3% on news of further dilution of the stock. The company announced an upsizing of its previously announced offering in which the company will grant its underwriters, Canaccord Genuity and GMP Securities, the option to purchase an additional 1.5 million shares at a price of 9 Canadian dollars. The stock has delivered a loss of 3.2% YTD (year-to-date) but has performed better than industry stocks (MJ) like Aphria (APHQF) and Aurora Cannabis (ACB) (ACBFF).
Aphria (APHQF) is also doing its part to penetrate markets where medical cannabis (SEED-TSE) is legal. On May 16, the company signed an exclusive agreement to supply medical cannabis in Columbia. The agreement is with Colcanna SAS, which has the license to import and distribute medical cannabis in the country.
On May 14, Aurora Cannabis (ACB) (ACBFF) announced that it agreed to acquire all of MedReleaf’s (MEDFF) outstanding common shares for about 3.2 billion Canadian dollars in one of the biggest deals in the cannabis sector (MJ). Following the news, MedReleaf stock was heavily traded with a volume of 3.3 million shares and closed at 25.3 Canadian dollars. Read MedReleaf Stock Rises on Aurora Cannabis Acquisition to learn more. Similar to Canopy Growth (WEED), the mean ratings for Aurora Cannabis also improved from 2.3 a month ago in April, which indicates that analysts were more bullish on the stock month-over-month.
With the anticipation of huge demand for cannabis, which translates into potential earnings growth, analysts are quite bullish on cannabis stocks in May. Most companies have seen increased bullishness over the last month, as we’ll discuss in this series. On May 15, Canopy Growth (WEED) stock was in the news again for its latest agreement to acquire Canopy Health Innovation and its subsidiary, Canopy Animal Health.
The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TGOD.TO) (TGODF) is pleased to announce that, effective April 20, 2018, the Company has been granted a supplemental license from Health Canada for the production of cannabis oils. The Company produces its cannabis oil using a supercritical CO2 extraction system, capable of processing up to 6,600 kg / year into ultra-pure, environmentally friendly, organic cannabis oils. “The extraction process allows TGOD to transform our premium quality organic raw material into a variety of premium higher-margin cannabis products.
Today, Canopy Growth (WEED) stock surged more than 7% on news of its application to list its common shares on the NYSE (New York Stock Exchange). This news comes on the heels of Aurora Cannabis (ACB)(ACBFF) announcing its acquisition of MedReleaf (MEDFF) today. Read more in MedReleaf Stock Rises on Aurora Cannabis Acquisition.
Today, Aurora Cannabis (ACB)(ACBFF) announced that it agreed to acquire all of MedReleaf’s (MEDFF) outstanding common shares for about 3.2 billion Canadian dollars. On the other hand, Aurora Cannabis stock fell almost 2.5% to 7.9 Canadian dollars. According to Aurora Cannabis’s press release, the acquisition price of 29.4 Canadian dollars implies a premium of 34% over both companies’ 20-day VWAP (volume-weighted average price) common shares as of May 11.
In the previous part of this series, we discussed how Canadian cannabis stocks’ (HMMJ) forward EV-to-EBITDA (enterprise value-to-earnings before interest, tax, depreciation, and amortization) multiple moved last week. In this part, we’ll compare how these producers’ multiples compare with each other.
Strong sentiment in the cannabis sector pushed ETFs and stocks into positive territory last week. The Horizons Marijuana Life Sciences ETF (HMMJ) closed 4.4% higher, while its US-listed counterpart, the Horizons Marijuana Life Sciences Index ETF (HMLSF), rose 4.8%. Similarly, the Emerging Marijuana Growers Index ETF (HMJR) rose 4.3%, and the Evolve Marijuana ETD (SEED) rose 2.5% between its close on May 4 and its close on May 11.
Shortly after Prohibition ended, one of Ben Kovler’s ancestors invested $5,000 in a family of distillers led by James Beauregard Beam. Kovler, 39, sees similarities between the liquor industry of the 1930s, when his great-grandfather Harry Blum helped build Jim Beam into one of the most recognizable bourbon brands, and today’s market for cannabis. With the end of what he calls “Prohibition 2.0,” Kovler is preparing to take Green Thumb Industries public in Canada.
EDMONTON and MARKHAM, ON , May 14, 2018 /CNW/ - Aurora Cannabis Inc. ("Aurora") (ACB.TO) and MedReleaf Corp. ("MedReleaf") (LEAF.TO) are pleased to announce that they have entered into a definitive arrangement agreement (the "Arrangement Agreement") whereby Aurora intends to acquire all of the issued and outstanding common shares of MedReleaf in an all-share transaction valued at approximately C$3.2 billion on a fully diluted basis (the "Transaction"). Under the terms of the Arrangement Agreement, holders of MedReleaf common shares will receive 3.575 common shares of Aurora for each MedReleaf common share held (the "Exchange Ratio").
The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TGOD.TO) is pleased to announce the addition of Cam Battley to TGOD’s Board of Directors. Cam Battley is Chief Corporate Officer at Aurora Cannabis Inc. (“Aurora”)(ACB.TO), where he is the lead external-facing executive, responsible for establishing and managing relationships with various stakeholders operating in the cannabis sector. Mr. Battley is a member of the Board of Directors of Cannabis Canada, the trade association of Licensed Producers.
WKN:A1C4WM), today announced that, following the satisfaction of the escrow release conditions related to Alcanna Inc.'s ("Alcanna" – TSX: CLIQ) (Formerly:Liquor Stores NA) previous private placement with Aurora, 2,300,000 subscription receipts were converted, on a one-for-one basis, into 2,300,000 common shares of Alcanna. Following the satisfaction of the escrow release conditions, $34.6 million were released from escrow to Alcanna.
In Canada, getting high off marijuana doesn’t come at a high cost—at least compared with the U.S. Cannabis is 30% cheaper in Canada than in the parts of the U.S. where it is legal, according to a report released this week from data analysis firm Priceonomics. In the U.S., an eighth of an ounce of marijuana costs $40 on average, versus just $27.90 in Canada.
The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TGOD.TO) is pleased to announce that it has issued an additional 4,726,500 units (the “Over-Allotment Units”) at $3.65 per Over-Allotment Unit raising additional aggregate gross proceeds of $17,251,725 pursuant to the exercise of the over-allotment option (the “Over-Allotment Option”) granted to a syndicate of agents co-led by Canaccord Genuity Corp. as sole bookrunner and PI Financial Corp., and including Industrial Alliance Securities Inc., INFOR Financial Inc., Echelon Wealth Partners Inc. and Mackie Research Capital Corporation, in connection with its recently completed initial public offering (the “IPO”) which closed on May 2, 2018. After taking into account the Over-Allotment Option, TGOD will have raised aggregate gross proceeds of $132,263,225 under the IPO by issuing an aggregate of 36,236,500 units of the Company, including the Over-Allotment Units.
The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TGOD.TO) is pleased to announce the addition of several key executives including CFO, General Counsel, VP of Sales, VP of Marketing, VP of Operations, and Regional Sales Manager for Ontario and Western Canada. “We are very proud to introduce these new additions to the TGOD team. TGOD’s ability to attract this outstanding talent is a testament to our vision and strategic plan.
The cannabis industry has seen a surge in producers seeking to gain a piece of the Canadian recreational cannabis market (MJ). On May 2, yet another licensed producer, Green Organic Dutchman (TGOD), completed its IPO. The IPO was priced at 3.65 Canadian dollars with 31.5 million units on the Toronto Stock Exchange. The IPO resulted in total proceeds of 115 million Canadian dollars.
Last week was broadly positive for the cannabis sector. The ETF Horizons Marijuana Life Sciences (HMMJ) rose 2.4%, while the ETFMG Alternative Harvest ETF (MJ) rose 3.1% last week. On the other hand, the Horizons Emerging Marijuana Growers Index ETF (HMJR) fell 1.3%, while Evolve Marijuana ETF (SEED) fell by 79 basis points last week.
Between April 27 and May 3, cannabis producer (HMLSF) Canopy Growth (WEED) stock has risen almost 9% to 29.9 Canadian dollars from its close of 27.3 Canadian dollars last week. On May 2, Canopy Growth received a price target upgrade from Canaccord Genuity to 27.5 Canadian dollars from 26.5 Canadian dollars, representing a ~3.8% increase.
Cannabis companies are on an acquisition spree, and companies have made vertical and horizontal acquisitions within the industry. Given that recreational marijuana legalization in Canada is just a few months away, acquisitions are the fastest way to grow in size to capture market share. In our series Cannabis Players and Their Business Combinations, we discussed some of the acquisitions and partnerships within this sector (MJ).
Is cannabis industry consolidating? On May 3, Aurora Cannabis (ACB) (ACBFF) and MedReleaf (MEDFF) were halted by the IIROC (Investment Industry Regulatory Organization of Canada) due to unusual trading levels on speculation of merger talks. Aurora Cannabis ended higher by 88 basis points at 8.02 Canadian dollars on May 3, while MedReleaf climbed as much as 2.2% to close at 22.25 Canadian dollars on the same day.