Monday , 21 October 2019


Cannabis Central: This New Marijuana Index Tracks the Pulse of the Cannabis Market

New OTC Markets Group’s OTCQX Cannabis Index tracks 30 marijuana stocks providing an ideal way to track the pulse of the market.

Written/Compiled by Lorimer Wilson (www.munKNEE.com)

There were a total of 56 cannabis-related securities trading on the OTCQX at the end of last month and 30 of them are included in the new index which debuted on June 4.

Eligible securities for the OTCQX Cannabis Index (OTCQXMJ) must:

  • be traded on OTCQX,
  • be identified as having operations in the Cannabis space,
  • and meet a minimum liquidity screen.

Below is a list of the companies that make up the initial holdings for the index (All dollar amounts are in Canadian dollars unless otherwise indicated.) Incidentally, a beta that is greater than 1.0 indicates that the security’s price is theoretically more volatile than the market. For example, if a stock’s beta is 1.2, it is assumed to be 20% more volatile than the market. This indicates that adding the stock to a portfolio will increase the portfolio’s risk, but also increase its expected return.

  1. AusCann Group Holdings (ASX:AC8, OTCQX:ACNNF); Mkt. Cap: $118.9M Australian; 52-wk H/L Price Spread: 4.0x; Beta: 1.37; https://auscann.com.au/
  2. Aleafia Health Inc. (TSX:ALEF, OTCQX:ALEAF); Mkt. Cap: $304.7M; 52-wk H/L Price Spread: 7.3x; Beta: 3.3; aleafiahealth.com/
  3. Beleave Inc. (CSE:BE, OTCQX:BLEVF); Mkt. Cap: $35.6M; 52-wk H/L Price Spread: 5.9x; Beta: 3.5; https://beleave.com/
  4. Auxly Cannabis Group Inc. (TSXV:XLY, OTCQX:CBWTF); Mkt. Cap: $430.9M; 52-wk H/L Price Spread: 2.7x; Beta: 5.5; https://auxly.com/
  5. Cannex Capital Holdings Inc. (CSE:CNNX, OTCQX:CNXXF); Mkt. Cap: $242.5M; 52-wk H/L Price Spread: 4.7x; Beta: 3.5;  www.cannexcapital.com/
  6. Cresco Labs Inc. (CSE:CL, OTCQX:CRLBF); Mkt. Cap: $1.4B; 52-wk H/L Price Spread: 3.5x; Beta: 1.3; www.crescolabs.com
  7. Curaleaf Holdings Inc. (CSE:CURA, OTCQX:CURLF); Mkt. Cap: $4.1B; 52-wk H/L Price Spread: 3.1x; Beta: -139; curaleaf.com
  8. Charlotte’s Web Holdings, Inc. (TSX:CWEB, OTCQX:CWBHF); Mkt. Cap: $871.4M; 52-wk H/L Price Spread: 3.7x; Beta: 2.9; www.charlottesweb.com
  9. Elixinol Global Limited (ASX:EXL, OTCQX:ELLXF); Mkt. Cap: 586.1M AUD; 52-wk H/L Price Spread: 4.4x; Beta: N/A; Web site: N/A
  10. Emerald Health Therapeutics Inc. (TSXV:EMH, OTCQX:EMHTF); Mkt. Cap: $333.1M; 52-wk H/L Price Spread: 2.9x; Beta: 1.8; www.emeraldhealth.ca
  11. Harvest One Cannabis Inc. (TSXV:HVT, OTCQX:HRVOF); Mkt. Cap: $120.6M; 52-wk H/L Price Spread: 3.5x; Beta: 4.9; www.harvestone.com
  12. Harvest Health & Recreation Inc. (CSE:HARV, OTCQX:HRVSF); Mkt. Cap: $2.28B; 52-wk H/L Price Spread: 3.2x; Beta: 2.0; www.harvestinc.com
  13. InMed Pharmaceuticals Inc. (TSX:IN, OTCQX:IMLFF); Mkt. Cap: $60.3M; 52-wk H/L Price Spread: 3.6x; Beta: 5.3;  www.inmedpharma.com
  14. iAnthus Capital Holdings Inc. (CSE:IAN, OTCQX:ITHUF); Mkt. Cap: $526.7M; 52-wk H/L Price Spread: 2.6x; Beta: 1.1;  www.ianthuscapital.com
  15. Indiva Limited (TSXV:NDVA, OTCQX:NDVAF); Mkt. Cap: $36.9M; 52-wk H/L Price Spread: 3.1x; Beta: 2.9; www.indiva.com
  16. Invictus MD Strategis Corp. (TSXV:GENE, OTCQX:IVITF); Mkt. Cap: $49.3M; 52-wk H/L Price Spread: 6.2x; Beta: 3.2; www.invictus-md.com
  17. James E Wagner Cultivation Corporation (TSXV:JWCA,OTCQX:JWCAF); Mkt. Cap: $59.9M; 52-wk H/L Price Spread: 3.0x; Beta: 0.81; www.indiva.com
  18. Lifestyle Delivery Systems Inc. (CSE:LDS, OTCQ X:LDSYF); Mkt. Cap: $31.1M; 52-wk H/L Price Spread: 3.8x; Beta: 5.0; www.lifestyledeliverysystems.com/
  19. Liberty Health Sciences Inc. (CSE:LHS, OTCQX:LHSIF); Mkt. Cap: $203.7M; 52-wk H/L Price Spread: 3.0x; Beta: 0.46; www.libertyhealthsciences.com
  20. MedMen Enterprises (CSE:MMEN, OTCQX:MMNFF); Mkt. Cap: $523.7M; 52-wk H/L price Spread: 3.9x; Beta: 18.8;  www.medmen.com
  21. 1933 Industries Inc. (CSE:TGIF, OTCQX:TGIFF); Mkt. Cap: $123.6M; 52-wk H/L Price Spread: 2.1x; Beta: 3.4; www.1933industries.com
  22. OrganiGram Holdings Inc. (TSXV:OGI, NASDAQ:OGI); Mkt. Cap: $1.4B; 52-wk H/L Price Spread: 2.7x; Beta: 9.7; www.organigram.ca
  23. CannaRoyalty, operating as Origin House (CSE:OH, OTCQX:ORHOF); Mkt. Cap: $566.8; 52-wk H/L Price Spread: 3.1x; Beta: 2.2;  www.originhouse.com
  24. The Supreme Cannabis Company Inc. (TSX:FIRE, OTCQX:SPRWF); Mkt. Cap: $424.5M; 52-wk H/L Price Spread: 2.1x; Beta: 4.0; www.supreme.ca
  25. The Green Organic Dutchman Holdings (TSX:TGOD, OTCQX:TGODF); Mkt. Cap: $913.7M; 52-wk H/L Price Spread: 4.7x; Beta: 5.0www.tgod.ca
  26. THC BioMed International Ltd. (CSE:THC, OTCQX:THCBF); Mkt. Cap: $31.4M; 52-wk H/L Price Spread: 6.3x; Beta: 2.4www.thcbiomed.com
  27. True Leaf Brands Inc. (CSE:MJ, OTCQX:TRLFF); Mkt. Cap: $30.6M; 52-wk H/L Price Spread: 2.3x; Beta: -0.64; www.trueleaf.com
  28. Terra Tech Corp. (OTCQX:TRTC); Mkt. Cap: $57.8MUSD; 52-wk H/L Price Spread: 5.5x; Beta: 1.5; www.terratechcorp.com
  29. Vivo Cannabis Inc. (TSXV:VIVO, OTCQX:VVCIF); Mkt. Cap: $156.2M; 52-wk H/L Price Spread: 4.5x; Beta: 3.0; www.vivocannabis.com
  30. WeedMD Inc. (TSXV:WMD, OTCQX:WDDMF); Mkt. Cap: $172.9M; 52-wk H/L Price Spread: 2.5x; Beta: 3.1; www.weedmd.com

It is interesting to note that the stocks above consist of:

  • 2 Mid-Cap stocks ($2B-$10B);
  • 10 Small-Cap stocks ($300M -$2B);
  • 12 Micro-Cap stocks (50M-$300M) and
  • 6 Nano-Cap stocks (less than $50m).

and the number per stock exchange is:

  • TSX: 5
  • TSXV: 9
  • CSE: 13
  • ASX: 2
  • OTC: 1

In addition, it should be noted that the constituents in the index have experienced extreme volatility over the past 12 months:

  • the 52-week average high/low price spread was 3.8x and
  • the current Beta (excluding Elixinol & the Curaleaf -139.0 outlier) is 3.6

Please note:

The OTCQX Cannabis Index daily performance can be seen here. (At this point in time investors cannot invest directly in the OTCQX Cannabis Index.)