AGRA the winner of Tier 3 of Canadian Cannabis LP Index Tier 3
Tier 3, which included the 34 LPs that generate cannabis-related quarterly sales less than C$2.5 million, declined 17.4%, leaving its year-to-date loss at 32.0% after declining 26.4% in 2018. 3 of the 4 companies in the entire sector that showed gains in the month were members of Tier 3 during October as 3 of the 5 worst performers. The winners included AgraFlora Organics (CSE: AGRA) (OTC: AGFAF), MPX International (CSE: MPXI) (OTC: MPXOF), which saw purchases of its stock by its CEO and another executive, and Indiva (TSXV: NDVA) (OTC: NDVA), which was able to find debt financing during the month. FSD Pharma (CSE: HUGE) (OTC: FSSDF), which conducted a 201:1 reverse-split, Green Organic Dutchman (TSX: TGOD) (OTC: TGODF), which curtailed its expansion plans when it was unable to raise debt financing, and Terranueva(CSE: TEQ) all declined more than 46%.
The returns for the overall sector varied greatly, with 4 names posting positive returns, while 15 declined by more than 25%, for a median return of -16.6%:
For November, the overall index will have 49 constituents, as we have added a previously omitted company, Geyser Brands (TSXV: GYSR) (OTC: GYSRF), which owns a relatively small LP that was licensed in late 2018, Apothecary Botanicals. It enters the Tier 3 index as well. Additionally, Valens GroWorks has moved from Tier 2 to Tier 1. Readers should be aware that Sundial Growers (NASDAQ: SNDL) and Tilray (NASDAQ: TLRY), with no Canadian listings, are not eligible for inclusion in the index, which is denominated in Canadian dollars. Note that the cut-off date for making changes to the index was 10/29.
In the next monthly review, we will summarize the performance for November and discuss any additions or deletions. Be sure to bookmark the pages to stay current on LP stock price movements within the day or from day-to-day.