Canadian marijuana stocks continue to break out and this rally has shown no signs of slowing down.
Earlier this week, the Canadian marijuana sector received a major boost after the House Standing Committee on Health approved an amendment to Canada’s legalization bill that would allow edibles.
Legalization of Edibles Create Another Catalyst for Canada
Over the last month, Canadian licensed marijuana producers have been one of the hottest places to invest and we have seen a lot of capital enter the market during this time.
Just by looking in the average increase in trading volume on a month-over-month basis, you would see that these companies have attracted a lot of new money. A majority of this volume has been on the buy side and this has caused momentum to surge higher.
Currently, Canopy Growth (TWMJF), Aphria (APHQF), and Supreme Pharmaceuticals (SPRWF) are trading at overbought levels, while Organigram (OGRMF), Cronos (PRMCF), Aurora (ACBFF), and Emblem (EMMBF) are trading right below overbought levels.
We are favorable on this trend and look back to the fourth quarter of 2016 to find a similar trend. If this rally is anything like what we saw last year, this could just be the start of a big cycle turn.
9 Canadian Marijuana Company Developments to Know
Today, we have highlighted 9 Canadian marijuana stock updates that we believe investors need to be aware of:
- Emblem Corp. (EMC.V) (EMMBF) traded higher after the company announced a collaboration and licensing agreement with Toronto based Canntab Therapeutics, which has developed a patent-pending oral sustained release formulation for cannabinoids. The companies will collaborate on the pre-clinical formulation, clinical development, regulatory approval, manufacturing and commercialization of the sustained release product.
- Shares of Canabo Medical (CMM.V) (CAMDF) broke out of its prior trading range after the company announced that it was cash flow positive in August and anticipates continued growth for the remainder of the fourth quarter. During August, the company saw more than 1,270 new patient appointments, a new company record. Canabo physicians seeing 3,000+ new and recheck patients monthly and expecting total patient appointments for fiscal 2017 to exceed 50,000.
- DOJA Cannabis Limited (DOJA.CN) jumped higher after the company announced that its arm’s length offer to acquire a 22,580 sq. ft. building has been approved. Upon completion of the build-out of the new facility, DOJA’s total cannabis production capacity is expected to surpass 5,000 kg per year. We are favorable on this update and will keep an eye on how the rally continues.
- Maricann Group Inc. (MARI.CN) (MRRCF) has been one of the top performing marijuana stocks recently. Earlier this week, the licensed marijuana producer announced the appointment of Scott Langille as CFO, effective as of October 2nd. He has over 30 years of experience in the pharmaceutical industry in both Canada and the United States. He was formerly CFO of Tribute Pharmaceuticals Canada, which was sold to Pozen last year for $160 million.
- ICC International Cannabis Corporation (ICC.V) (ICCLF) has been trading higher after the company issued an update on its cannabinoid business segment. ICC recently received regulatory approval from the Ministry of Livestock, Agriculture and Fishery to import two strains of hemp with CBD flower content exceeding 10%. The authorization also permits ICC to sow, harvest and export the CBD oils, CBD extracts, and pure CBD crystals produced from these two strains. The company intends to produce and export high quality CBD extracts and crystal compounds to the growing medicinal and nutraceutical markets globally where lawful.
- Future Farm Technologies (FFT.CN) (FFRMF) traded significantly higher after the company’s subsidiary, FFM Consulting Services, sold 3,525 grams of crude cannabis oil from the California oil extraction facility. The sale was made to a large distributor with whom the company is now negotiating a supply contract for 100-250 kilos of oil per week. We are favorable on this transaction and believe it is a significant milestone for the company. We will keep an eye on how the shares trade from here.
- Ahead of the legalization of recreational marijuana in Canada, Cronos Group Inc. (MJN.V) (PRMCF) announced the rebranding of In The Zone to Original BC Ltd. The name change reflects the company’s strategic vision in anticipation of the expected legalization of recreational cannabis in Canada. OGBC will serve as the platform that Cronos will leverage to launch new brands to serve the international recreational market. OGBC is located on 31 acres of land in the Okanagan Valley in British Columbia and is focused on quality and integrity. Over the past year, manufacturing upgrades to the initial pilot facility and methodology refinements have resulted in substantial increases in both yields and quality.
- Isodiol International (ISOL.CN) (ISOLF) received a favorable response from the market after the company officially initiated the approval process to begin exporting its flagship product, Isoderm to Chile. In 2015, Chile legalized the use of medicinal marijuana and Isodiol is one of the first companies to register a CBD product with the Chilean Health Department. The company anticipates the introduction of additional products into the Chilean market including new non-cannabis derived CBD products.
- MedReleaf Corp. (LEAF.TO) (MEDFF) edged higher after the licensed marijuana producer was the first to launch a topical cream. The product is specifically formulated to provide superior absorption with MedReleaf’s award-winning high CBD strain and was developed in response to patient feedback for topical applications of CBD. MedReleaf’s topical cream uses cosmetic grade ingredients; is approved by Health Canada for sale; and is currently available at a special introductory price to allow as many patients as possible to experience this exciting new product.
Source: Technical 420