A month from today, Canada’s senate will be voting on C-45, also known as the Cannabis Act.
If it passes, and it does seem likely, it will mean that Canadian adults age 18 and above will be able to legally access recreational marijuana.
If the Cannabis Act is signed into law next month, legal cannabis sales will begin in August or September of this year.
The question now every cannabis stock investor should ask is which companies have an excess of product to sell?
Here are a few companies that can deliver over 100,000 kilos per year for the upcoming green rush (estimations are approximate):
Canopy Growth Corp (TWMJF): 500,000 kilos
Taking into account its anticipated 5.7 million square feet of growing space plus superior distribution capacity via retail stores, online sales, and partnerships, Canopy is clearly the biggest player in the field.
Aurora Cannabis (ACBFF): 430,000 kilos
Aurora has been one of the most aggressive in terms of expanding its growing capacity and distribution: its partnership with Alfred Pedersen & Son in Denmark will allow it to deliver 120,000 kilos per year; Aurora Sky, its 800,000 square foot organic greenhouse project, is expected to yield 100,000 of dried cannabis per year; its pricy acquisition of CanniMed Therapeutics may greatly increase its production and distribution capacity; and its new 1.2 million square foot facility in Alberta is expected to produce an additional 150,000 kilos annually.
Aphria (APHQF): 230,000 kilos
Aphria invested $100 million into Aphria One, a project expected to produce approximately 100,000 kilos per years. Partnering with Double Diamond Farms, the Aphria Diamond project can yield around 120,000 kilos annually. Finally, the remaining cannabis production will be coming from its acquisition of Broken Coast Cannabis.
MedReleaf (MEDFF): 140,000 kilos
MedReleaf’s capacity at the end of 2017 was comparatively small at 35,000 kilo per year. But in February of this year, MedReleaf made a 164-acre acquisition that included greenhouses spanning 69 acres that will now enable MedReleaf to produce as much as 105,000 kilos per year, radically pushing up its production capacity.
OrganiGram Holdings (OGRMF): 113,000 kilos
OrganiGram surprised the industry when it raised its annual yield estimates from 65,000 to 113,000 kilos. What’s notable about this company is that it maintains a single and centralized grow site (New Brunswick) which allows it to more efficiently manage its costs. Plus, its focus on the producing cannabis oils, which yields higher profit margins, plus its current low price valuation makes it a potentially favorable “value stock.”
Hydropothecary Corp (HYYDF): 108,000 kilos
Hydropothecary made the news when it secured the largest supply deal in Canada; a five-year agreement to supply Quebec with 200,000 kilos. Currently at capacity to produce 108,000 kilos of cannabis per year, this deal incentivizes the company to ramp up production; a demand which Hydropothecary feels is well within their means to fulfill.
Cannabis Wheaton Income Corp (CBWTF): 230,000 kilos
Cannabis Wheaton is not a grower, unlike the companies mentioned above. Instead, its a middle man that provides capital to growers to expand capacity. In return, Cannabis Wheaton receives a percentage of their production and resells the product at market prices. The company has secured over a dozen licensing deals, has a 60% rate of return on the deals, and is expecting to receive 230,000 kilos per year from its licensed partnerships.
This industry is still emerging, and changes to this list may happen quickly as business gets underway. For now, these are the top companies that have lots of cannabis in stock and ready to sell into the markets.
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