Why CannTrust Has The Most Upside PotentialCannTrust has completed the redevelopment of 250,000 sq ft out of their 430,000 sq ft Niagra growing facility and have already harvested 10 crops of high quality marijuana in the completed space. They’re also now working on completing the remaining 180,000 sq ft by May 2018 - just in time for recreational legalization. CannTrust’s growing facilities will be producing large amounts of marijuana much earlier than most, since the majority of the weed companies’ growing facilities will not be completed until early 2019. CannTrust’s high Marijuana yields (400-450g per sq ft) and sales of cannabis extracts are 62% of total cannabis sales - both are industry leading. By mid 2018 they’ll be producing 45,000 - 50,000 kg of marijuana per year which equals over $350 million in revenue at $8/g. The revenue from this year will able them to start developing an additional 1.3 million sq ft of growing space on their 46 acre Niagra land parcel, which would increase their growing capacity to 150,000kg/yr, bringing in over $1 Billion in revenue per year. Also CannTrust’s partnership with Apotex could spike this stock significantly higher once they develop products for local and international markets. Investors will be scooping up CannTrust since they are already profitable compared to most and they’ll be one of the few producing large amounts of high quality marijuana in time for legalization. Canadian Marijuana Stocks with Notable Expected EBITDA Growth
SmallCapPower | March 6, 2018: The Horizon Marijuana Life Sciences Index is down 24% since its peak in January, but is up 12% M/M. As recreational legalization in Canada approaches this summer, these companies have plans to meet the upcoming demand. If marijuana continues its rally, the Canadian marijuana stocks on our list could see strong returns in both the short and long term.
CannTrust Holdings Inc. (TSX:TRST) – $9.00
Pharmaceuticals
CannTrust is a Canada-based licensed producer of medical cannabis. The Company’s products are sold online and delivered to registered patients. CannTrust’s 50,000 square foot production facility, located in Vaughan, Ontario, uses hydroponic technology to produce at an annual capacity of 3,600 KG. Furthermore, CannTrust has set aside a 46-acre property, where it plans to ramp up production capacity with a 430,000-square foot expansion.
- Market Cap: $832.2 Million
- 1 Month Total Return: 6.0%
- 3 Month Total Return: 25.9%
- EBITDA Growth – Next Year/This Year: 2554.5%
- Peer Average EBITDA Growth – Next Year/This Year: 488.1%
MedReleaf Corp. (TSX:LEAF) – $19.90
Pharmaceuticals
MedReleaf is a licensed producer of medical marijuana under the ACMPR. MedReleaf currently produces 7,000 KG/year out of a 55,000 sq. ft. facility in Markham. The Company started to produce 5,600 KG/year out of a 210,000 sq. ft. facility in Bradford in October. The Company plans to expand its Bradford facility to reach 28,000 KG/year from it by August 2018. The Company has partnered with Shoppers Drug Mart to sell medical marijuana.
- Market Cap: $1,992.5 Million
- 1 Month Total Return: 26.4%
- 3 Month Total Return: 26.1%
- EBITDA Growth – Next Year/This Year: 1487.6%
- Peer Average EBITDA Growth – Next Year/This Year: 488.1%
Hydropothecary Corp. (TSXV:THCX) – $3.64
Pharmaceuticals
Hydropothecary is a licensed producer and distributor of medical marijuana under the Access to Cannabis for Medical Purposes Regulations (ACMPR). With an operational 50,000 square foot facility, Hydropothercary also aims to scale up 250,000-square feet with an expansion that is expected to come online by Q2/2018. Hydropothecary closed a $69M offering of convertible debentures in November to fund its expansion plans.
- Market Cap: $651.0 Million
- 1 Month Total Return: 7.1%
- 3 Month Total Return: 35.3%
- EBITDA Growth – Next Year/This Year: 831.3%
- Peer Average EBITDA Growth – Next Year/This Year: 488.1%
Aphria Inc. (TSX:APH) – $13.72
Pharmaceuticals
Aphria is a licensed producer and supplier of medical marijuana under the ACMPR. Aphria’s flagship greenhouse production facility is located on a 169-acre property in Leamington, Ontario. The Company currently produces 9,000kg and plans to expand its production facility to add an additional 90,000kg.
- Market Cap: $2,247.3 Million
- 1 Month Total Return: -1.2%
- 3 Month Total Return: 18.1%
- EBITDA Growth – Next Year/This Year: 763.2%
- Peer Average EBITDA Growth – Next Year/This Year: 488.1%
