3 Canadian Marijuana Stocks That Deserve a Higher Valuation

Thursday, Nov 2, 2017

SmallCapPower | November 2, 2017: As Licensed Producers continue to roll out and execute on expansion plans in anticipation of the legalized recreational market in Canada next year, marijuana stocks have taken off. The Canadian marijuana stocks covered below trade at a significant discount to their peers, trading at EV/Planned Capacity Expansion multiples ($ per gram) ranging between $3.24 and $7.33, as opposed to a peer average of $10.91.

Supreme Pharmaceuticals Inc. (TSXV:FIRE) – $1.38Pharmaceuticals

Supreme Pharmaceuticals is a Canada-based licensed producer of medical marijuana. The Company’s primary asset is 7ACRES, which currently operates a 40,000-square foot facility that produces 5,000 KG per year. The Company is also developing a 342,000-square foot facility at 7ACRES that anticipates 50,000 KG of annual production.

Market Cap: $269 Million EV/Planned Capacity Expansion: $4.8 per Gram YTD Total Return: -4.8%

Emerald Health Therapeutics Inc. (TSXV:EMH) – $1.60Pharmaceuticals

Emerald Health Therapeutics is a Canada-based company currently developing production capacity for medical marijuana cultivation. The Company recently announced a 50/50 joint venture (called Pure Sunfarms) with Village Botanicals for the establishment of a large-scale production facility. Under the agreement, Village provided a 1.1 million square foot greenhouse facility (previously used for tomato cultivation), which will be retrofitted for the cultivation of cannabis. Emerald Health estimates that the initial facility could yield more than 75,000 KG of dried cannabis. The Company also has options to purchase an additional 3.7 million square feet of greenhouse space that are located next to the current facility being built.

Market Cap: $150 Million EV/ Planned Capacity Expansion: $3.24 per Gram YTD Total Return: 23.1% Market Cap: $471 Million EV/Planned Capacity Expansion: $7.33 per Gram YTD Total Return: 120.3% The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source. Ubika and/or its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities and/or commodities and/or commodity futures contracts in certain underlying companies mentioned in this s ite and which may also be clients of Ubika’s affiliates. In such instances, Ubika and/or its affiliates and/or their respective officers, directors or employees will use all reasonable efforts to avoid engaging in activities that would lead to conflicts of interest and Ubika and/or its affiliates will use all reasonable efforts to comply with conflicts of interest disclosures and regulations to minimize the conflict. TAGS