Identifying companies with high gross margins in the young marijuana industry is important because operating costs are likely to decrease as the industry matures, leaving these companies with high earnings potential. Today we have identified five Canadian marijuana stocks with gross margins well above their industry peers.
The comments above & below are edited ([ ]) and abridged (…) excerpts from the original article by SmallCapPower.com
1. Invictus MD Strategies Corp. (TSXV: IMH)
Invictus MD Strategies Corp is a Canada-based company…specializing in acquiring, funding and developing entities which are involved in the medicinal marijuana area. It focuses on the production and distribution of medicinal marijuana through online stores, sale of hydroponic equipment and fertilizers, as well as of accessories for cannabis intake. The Company also is active in research and testing, as well as offers advisory services…
- Market Cap: $53,100,643
- Total Revenue (LTM): $3,706,130
- Debt to Equity: 18.7%
- Gross Margin: 35.3%
2. CanniMed Therapeutics Inc. (TSX: CMED)
CanniMed Therapeutics Inc is a Canada-based plant biopharmaceutical company that specializes in the production of pharmaceutical-grade cannabis and offers a range of pharmaceutical-grade cannabis products. In addition, the Company has a plant biotechnology research and product development program focused on the production of plant-based materials for pharmaceutical, agricultural and environmental applications. The Company, through its subsidiary CanniMed Ltd, offers medical cannabis oils, dried medical cannabis, vaporizers, vaporizer parts and accessories. Its CanniMed Oils are made using only dried cannabis flowers.
- Market Cap: $182,936,314
- Total Revenue (LTM): $5,788,000
- Debt to Equity: 127.6%
- Gross Margin: 37.1%
3. Canabo Medical Inc. (TSXV: CMM)
Healthcare Facilities & Services
Canabo Medical Inc, formerly Four River Ventures Ltd, is a Canada-based company engaged in the provision of medical services and non-cannabinoid products for patients suffering from chronic pain and disabling illnesses… The Company operates 10 medical clinics across Canada. Its medical clinics are operated by qualified health care practitioners, independent medical marijuana evaluations for employers and insurers, and medical marijuana scientific research. Each clinic provides cannabinoid educators, who consult with patients to determine the proper treatment for their ailments using medical marijuana based on the medical documentation as prepared by the physician.
- Market Cap: $15,564,609
- Total Revenue (LTM): $2,080,850
- Debt to Equity: 0.0%
- Gross Margin: 53.8%
4. OrganiGram Holdings Inc. (TSXV: OGI)
OrganiGram Holdings Inc., formerly Inform Exploration Corp., is a Canada-based…licensed medical marijuana producer as regulated by Health Canada under the Marijuana Medical Access Regulations (MMAR) of the Government of Canada.
- Market Cap: $228,096,870
- Total Revenue (LTM): $6,127,630
- Debt to Equity: 16.9%
- Gross Margin: 54.1%
5. Aphria Inc. (TSX: APH)
Aphria Inc., formerly Black Sparrow Capital Corp., is a Canada-based company engaged in producing and selling medical marijuana through retail sales and wholesale channels…The Company is also engaged in the research, development and commercial production of cannabis oil.
- Market Cap: $736,535,739
- Total Revenue (LTM): $8,433,930
- Debt to Equity: 0.0%
- Gross Margin: 70.9%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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