Canopy Growth Corp. (TSX: WEED) has become the world’s largest cannabis company, with a market cap of over $1B, after acquiring Mettrum Health Corp. for a 42%+ premium. That merger may lead to more industry consolidation, as Canada’s cannabis market continues to bud. As such, the search is now on for the next junior marijuana stock that is ripe for acquisition.
Written by SmallCapPower.com
To help in that search we identify below five Canadian marijuana takeover targets based upon their high revenue growth profiles.
1. Aphria Inc. (TSXV: APH)
Aphria Inc., formerly Black Sparrow Capital Corp., is a Canada-based company, which is engaged in producing and selling medical marijuana through retail sales and wholesale channels, and is also engaged in the research and development, and commercial production, of cannabis oil.
The Company’s retail sales are sold primarily through the Company’s online store, as well as telephone orders while its wholesale shipments are sold to other Medical Purposes Regulations (MMPR) Licensed Producers.
- Market Cap: $731 million CAD
- Revenue (FY0, CAD): $8,433,930 CAD
- Expected Revenue (FY1,): $20,569,830 CAD
- Revenue Growth (Y/Y): 143.9%
2. Aurora Cannabis Inc. (TSXV: ACB)
Aurora Cannabis Inc. is engaged in the production and sale of medical cannabis.
The Company’s product types include Tetrahydrocannabinol (THC), Cannabidiole (CBD), indica, sativa and hybrid…The THC product is responsible for the felt from cannabis and is connected to the immune system regulating, anti-inflammatory and pain relieving properties of medical marijuana.
- Market Cap: $786 million CAD
- Revenue (FY0): $1,439,270 CAD
- Expected Revenue (FY1): $32,291,000 CAD
- Revenue Growth (Y/Y): 2,143.6%
3. 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.
- Market Cap: $246 million CAD
- Revenue (FY0): $5,788,000 CAD
- Expected Revenue (FY1): $19,834,000 CAD
- Revenue Growth (Y/Y): 242.7%
4. OrganiGram Holdings Inc. (TSXV: OGI)
OrganiGram Holdings Inc., formerly Inform Exploration Corp., is a Canada-based company, which operates through its subsidiary Organigram Inc.which is a licensed medical marijuana producer as regulated by Health Canada under the Marihuana Medical Access Regulations (MMAR) of the Government of Canada.
- Market Cap: $274 million CAD
- Revenue (FY0): $6,127,630 CAD
- Expected Revenue (FY1): $12,743,800 CAD
- Revenue Growth (Y/Y): 108.0%
5. Supreme Pharmaceuticals Inc. (CSE: SL)
Supreme Pharmaceuticals Inc. is a Canada-based development-stage company focused on developing businesses in the cannabis market, with a specific focus on the wholesale sector of the medical cannabis market in Canada.
The Company operates an approximately 342,000 square foot greenhouse facility located in Kincardine, Ontario.
- Market Cap: $278 million CAD
- Revenue (FY0): $0
- Expected Revenue (FY1): $3,245,000 CAD
- Revenue Growth (Y/Y): n/a
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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