The Canadian Cannabis sector definitely has grown in the last couple years. When we first started investing it was easy to do research and keep track of the sector because there were only a few publically traded companies to choose from, now 3 years later the RYG watchlist has approximately 160 Canadian companies and the list keeps growing.  Every time a new company goes public it potentially dilutes the sector, seeing how it is another company that investors have to choose from. In terms of resources, there were also only 2 main facebook groups that we would use Marijuana Stock Traders and MMJ investing to keep up with the latest news and contribute research for different companies as a community. Most companies didn’t even have a facebook page or even website, you had to find the information through the CSE or Sedar. Now investors have taken upon themselves to maintain 1 closed group for each company and there are many new closed investing groups trying to help investors. We are currently in over 40 groups which at a certain point we feel that it is hard to keep up with all the information. 

     The addition of the cryptocurrency hype and the new blockchain sector is another reason why the Cannabis sector recently fell flat. Many investors were investing in companies that they did not understand and saw huge gains followed by huge loses. Investors thought that in a short period of time they would become rich and now almost a year later are stuck averaging down and carrying huge baggage.

     Private placements, Bought deals, and convertible debentures are all ways that companies are able to raise capital from investors. In return investors receive shares and warrants at a set price, most of these deals have a 4 month hold, some of the bought deals have a 30 day hold and some private companies can hold the shares for a longer period of time to allow their share price to increase. So far billions of dollars have been invested into the cannabis sector. Unfortunately, some companies do too many private placements in a short period of time which after the hold causes months of selling pressure. Or the industry leaders do bought deals that are worth hundreds of millions of dollars and that causes a lot of money to be locked away for a period of time. Normally investors sell their other shares to be a part of these deals which cause the rest of the sector to be down. 

     Clearly, for a new investor investing in the Cannabis Sector, a feeling of “where do I start now?” is bound to happen, and now with all these different companies and different groups, one might get overwhelmed when investing in this Sector. Our suggestion for investors is

1) Find out which company you would like to invest in: really dig deep view the companies Facebook, Instagram, Twitter account, and make sure to view their investor’s presentation. Also with time view the companies recent MD&A on Sedar to get an understanding of the companies financials 

2) Analyse share structure and market cap versus other companies in the sector. The higher the outstanding shares the more volatile the share price will get. Do not just look at share price because 2 companies may have the same share price but won’t have the same market cap.

3) Understand how the sector works a) how long on average does it take to get a cultivation or sell licence b) what is an acceptable share price/market cap when receiving a licence

4) Look at the past charts and see how the sector trades per season. From experience, the worst times of the year would be during  February and March usually sales are slow seeing how everyone just finished spending money on Christmas and New years, and construction sites are usually put on hold in Canada. July is also really boring, with only 4 licences ever given in the month of July, and most investors being on vacation, the sector experiences low volume which causes lower support levels. Normally we start seeing a rally in August and we see new highs in November.

For example to see how a small cap company trades. we’ll use THC Biomed (CSE: THC): It used to trade at around 20cents and then ran up at the end of 2016 to see new highs, then it just fell until the summer hitting around 30 cents, and then back up towards the end of 2017, now we are seeing the same trend for 2018

Canopy Growth (TSX: WEED) which is an industry leader also experienced depreciation of share price in the summer months.

Here is a table which shows the share price of a few companies that were public in 2017. It compares their share price on January 1st, 2017 to July 2017 and then from January 1st, 2018 to today’s share price. The trend is similar in both years a significant drop in share price in both cases. Hopefully this year with legalization 3 months away we see a lot more institutions investing in the sector, and in 2019 we will be looking forward to the legalization of edibles which will be another revenue stream.


TICKER NAME SP JAN 01 2017 SP JULY 15TH 2017 CHANGE % SP JAN 01 2018 CURENT SP CHANGE %
1 ATT Abattis Bioceuticals Corp 0.14 0.15 0.07142857142857129 0.6899999999999999 0.08 -0.8260869565217391
2 CNSX:ACG Alliance Growers Corp 0.19 0.14 -0.263157894736842 1.2 0.07000000000000001 -0.8250000000000001
3 NF #N/A 0.11 0.1 -0.09090909090909087 0.31 #N/A -0.8064516129032259
4 CNSX:HS Healthspace Data Systems Ltd 0.06 0.05 -0.1666666666666666 0.22 0.05 -0.7727272727272727
5 CVE:LG LGC Capital Ltd 0.03 0.09 2 0.57 0.1 -0.7719298245614035
6 VP Vodis Pharmaceuticals Inc 0.7 0.34 -0.5142857142857142 0.75 0.09 -0.7600000000000001
7 MDM Maisons du Monde SA 1.38 1.06 -0.2318840579710144 1.15 18.64 -0.7565217391304347
8 CNSX:APP Global Cannabis Applications Corp 0.05 0.09 0.7999999999999998 0.72 0.08 -0.7500000000000001
9 CVE:CYX CALYX VENTURES ORD 0.08 0.07000000000000001 -0.1249999999999999 0.28 0.02 -0.75
10 CNSX:ISOL Isodiol International Inc 0.1 0.2 1 1.49 1.03 -0.738255033557047
11 CNSX:VRT Veritas Pharma Inc 0.3 0.38 0.2666666666666667 0.88 0.53 -0.7272727272727273
12 CHV Canada House Wellness Group Inc 0.29 0.17 -0.4137931034482758 0.73 0.14 -0.7123287671232877
13 LIB Liberty Leaf Holdings Ltd 0.13 0.11 -0.1538461538461539 0.8100000000000001 0.14 -0.6913580246913581
14 TNY Tinley Beverage Company Inc 0.36 0.29 -0.1944444444444445 1.98 0.72 -0.6818181818181819
15 CNSX:MYM Mym Nutraceuticals Inc 0.05 0.59 10.8 4 0.47 -0.675
16 CNSX:MMJ Matica Enterprises Inc 0.02 0.12 4.999999999999999 0.61 0.1 -0.6721311475409836
17 CNSX:AFI Affinor Growers Inc 0.12 0.07000000000000001 -0.4166666666666666 0.26 0.04 -0.6538461538461539
18 VGW Valens Groworks Corp 0.82 1.08 0.3170731707317075 2.92 4.43 -0.6267123287671232
19 EMH Emerald Health Therapeutics Inc 1.34 1.21 -0.09701492537313441 6.55 3.65 -0.6076335877862595
20 CNSX:GHG Global Hemp Group Inc 0.04 0.03 -0.2500000000000001 0.34 0.06 -0.5882352941176471
21 CVE:TBP Tetra Bio Pharma Inc 0.28 0.8 1.857142857142857 1.5 0.6 -0.5866666666666667
22 CNSX:MJ True Leaf Medicine International Ltd 0.21 0.45 1.142857142857143 1.3 0.52 -0.5846153846153846
23 CVE:N Namaste Technologies Inc 0.27 0.22 -0.1851851851851852 3.46 0.73 -0.5838150289017341
24 CVE:NSP Naturally Splendid Enterprises Ltd 0.33 0.19 -0.4242424242424243 0.39 0.12 -0.5641025641025641
25 RVV Revive Therapeutics Ltd 0.12 0.19 0.5833333333333334 0.41 0.12 -0.5609756097560975
26 CNSX:EAT Nutritional High International Inc 0.24 0.12 -0.5 0.86 0.22 -0.5581395348837209
27 PUF #N/A 0.26 0.35 0.346153846153846 1.51 #N/A -0.5496688741721854
28 BE Bloom Energy Corp 1.44 1.1 -0.236111111111111 2.77 12.07 -0.5379061371841155
29 CNSX:GLH Golden Leaf Holdings Ltd 0.37 0.28 -0.2432432432432432 0.43 0.11 -0.5348837209302325
30 CVE:EMC #N/A 4.3 1.81 -0.5790697674418605 2.44 #N/A -0.4959016393442623
31 LDS Lifestyle Delivery Systems Inc 0.62 0.6 -0.03225806451612906 1.44 0.51 -0.4583333333333333
32 AQS Aequus Pharmaceuticals Inc 0.24 0.22 -0.0833333333333333 0.36 0.18 -0.4444444444444444
33 CVE:VANC #N/A 0.2 0.17 -0.15 0.34 #N/A -0.4411764705882353
34 TSE:APH #N/A 5.11 6.23 0.2191780821917808 20.19 #N/A -0.4180287270926201
35 CNSX:SUN Wildflower Brands Inc 0.26 0.51 0.9615384615384615 1.7 0.67 -0.3529411764705881
36 CVE:RTI Radient Technologies Inc 0.48 0.52 0.08333333333333341 1.75 1.01 -0.3428571428571429
37 CVE:GROW CO2 GRO Inc 0.17 0.09 -0.4705882352941177 0.31 0.43 -0.2903225806451613
38 VFF Village Farms International Inc 1.39 1.98 0.4244604316546763 8.27 13.23 -0.2841596130592502
39 CVE:HEMP Hempco Food and Fiber Inc 0.63 0.36 -0.4285714285714286 2.1 0.98 -0.2714285714285715
40 TSE:ACB Aurora Cannabis Inc 2.38 2.47 0.0378151260504203 11.82 11.63 -0.2707275803722505
41 BLO Cannabix Technologies Inc 0.83 0.58 -0.3012048192771085 2.98 1.19 -0.2516778523489933
42 CNSX:THC THC Biomed Intl Ltd 0.96 0.4 -0.5833333333333333 1.49 0.28 -0.2483221476510066
43 CNSX:PKG ParcelPal Technology Inc 0.19 0.09 -0.5263157894736842 0.25 0.25 -0.2
44 CVE:GENE Invictus MD Strategies Corp 1.49 1.22 -0.1812080536912752 1.7 0.54 -0.1705882352941177
45 TSE:CLIQ Alcanna Inc 10.42 10.45 0.002879078694817597 10.94 5.55 -0.1663619744058501
46 TSE:ASP Acerus Pharmaceuticals Corporation 0.14 0.12 -0.142857142857143 0.28 0.16 -0.1071428571428572
47 CNSX:LXX Lexaria Bioscience Corp 0.42 0.4 -0.04761904761904753 2.7 1.31 -0.1
48 TSE:CRON Cronos Group Inc 1.55 2.35 0.5161290322580645 10.2 20.75 -0.09411764705882344
49 CNSX:CRZ #N/A 3.15 2.57 -0.1841269841269842 4.72 #N/A 0.02966101694915266
50 CVE:OGI OrganiGram Holdings Inc 2.74 2.34 -0.1459854014598541 4.5 10.67 0.07111111111111118
51 TSE:WEED Canopy Growth Corp 9.390000000000001 8.210000000000001 -0.1256656017039403 32.37 60.06 0.1668211306765525
52 CVE:ICC #N/A 0.95 1.14 0.2 1.2 #N/A 0.1833333333333333
53 CVE:ENW EnWave Corp 1.15 1.02 -0.1130434782608695 1 2.33 0.3100000000000001
54 SCU The Second Cup Ltd 2.15 1.71 -0.2046511627906977 2.15 1.84 0.3255813953488373
55 CVE:RHT Reliq Health Technologies Inc 0.13 0.12 -0.07692307692307698 1.25 0.22 0.36
56 TSE:NEPT Neptune Wellness Solutions Inc 1.3 1.06 -0.1846153846153846 2.98 5.33 0.4429530201342282
57 TSE:SHOP Shopify Inc 57.65 115.03 0.9953165654813531 132.06 364.75 0.6575041647735876
58 IAN iAnthus Capital Holdings Inc 2.33 3.1 0.3304721030042919 2.92 5.56 1.25

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