Seven New Stocks Added to the Canadian Marijuana Index

MJIC Inc. has completed its quarterly rebalancing of the Marijuana Index, adding seven new cannabis companies to the Canadian Marijuana Index. There are no additions to the United States Marijuana Index.

The Canadian Marijuana Index tracks the top performing public cannabis companies operating in Canada. The index is combined with the United States Marijuana Index to create the North American Marijuana Index. The indices are equal-weighted and rebalanced quarterly.

The North American Marijuana Index now has 39 constituents, with the Canadian index having 24 components and the U.S. Marijuana Index having 15 elements.

Companies must achieve a weighted average minimum market capitalization of USD 40 million, the daily trading volume of USD 400,000, and a share price of USD 0.10. Companies with revenues of more than USD 5 million of revenue over the previous year are exempt from the trading requirements.

The companies added to the Canadian Marijuana Index are:

Cannabix Technologies Inc.

Cannabix Technologies Inc. (CSE: BLO) (OTC: BLOZF) is a Vancouver, B.C. based technology company. Cannabix is developing tools for law enforcement and the workplace to detect THC in the breath. The primary product is a marijuana breathalyzer designed for law enforcement and the workplace. The portable device would be used to provide detection of THC at the roadside to identify drivers under the influence of marijuana.

Harvest One Cannabis

Harvest One Cannabis Inc. (TSX: HVST) OTC: HVROF) is a global cannabis company focused on servicing both the medical and recreational cannabis markets. Harvest One is serving as the parent company of a wholly-owned medical subsidiary Satipharm AG and a wholly owned horticultural subsidiary United Greeneries.

Satipharm AG is based in Switzerland. Satipharm specializes in the development and production of dietary supplements with a focus on legally accessible cannabidiol (CBD). The primary product is CBD Gelpell Microgel Capsules. The capsules are made from organic CDB made according to GMP pharmaceutical standards. Each capsule contains little 2mm round gel caps that deliver a measured dose of CBD.

The CBD Gelpell Microgel Capsules are sold throughout the EU and in Australia. They are even available through Amazon’s German site. Canadian distribution is expected to begin in Q2 of 2018.

United Greeneries is a Vancouver based grower of cannabis. Current production is only about 1,000 kilos. Expansion plans call for production to hit 75,000 kilos in 2019. Retail sales of two branded lines, Captain’s Choice and Royal High, is set to begin in February 2018.

InMed Pharmaceuticals Inc.

InMed Pharmaceuticals Inc. (CSE: IN) (OTC: IMLFF) is a drug discovery, and development company uniquely focused on the therapeutic potential of cannabinoids. InMed is currently developing two products in its drug pipeline: INM-750, for the treatment of Epidermolysis Bullosa, and INM-085, for the treatment of Glaucoma. Both are topical products using multiple cannabinoids. IMM-750 is applied to the skin and IMM-085 is applied directly to the eye.

InMed plans for both products to start phase 1 trials in 2018.

Invictus MD Strategies Corp.

Invictus MD Strategies Corp. (TSXV: IMH) (OTC: IVITF) is in the business of growing marijuana. Capacity for 2018 is 26,000 kilos. Plans are in place to increase capacity to 76,000 kilos in 2019.

Invictus uses a combination of wholly-owned facilities and jointly owned facilities to operate its business. It claims to have 250 acres of land available for cultivation. Development is contingent on increased demand.

Besides growing cannabis, Invictus owns an 82.5% interest in Future Harvest. Future Harvest is a manufacturer of hydroponics and fertilizer with 20 years’ experience in the cannabis industry.

MYM Nutraceuticals Inc.

MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF) grows cannabis and manufactures cannabis products. MYM is rolling out the development of cultivation spaces with the goal of reaching more than 1.5 million square feet in 2020. The company is a 35% partner in a 1.2 million square foot facility under construction in Australia.

MYM has a 5,000 square foot production space that concentrates on manufacturing products based on extractions of industrial hemp. MYM makes both its own branded products and white label products. MYM’s brands include: Joshua Tree targeting the mainstream health market in Canada and the U.S., Dr. Furbaby is a line of products specifically for pets, and HempMed focusing on the dispensary market. The three brands have projected 2018 sales of more than $6.5 million.

THC Biomed Intl. Ltd.

THC Biomed Intl. Ltd. (CSE: THC) (OTC: THCBF) was founded in 2012. THC Biomed is headquartered in Kelowna, British Columbia, Canada. THC is a Canadian federally Licensed Producer of Medical Marijuana focusing on plant innovation and life sciences, with the emphasis on medical cannabis.

In a universe of corporate websites written to confuse rather than illuminate, THC Biomed is refreshing. The site’s primary purpose is to generate revenue while providing all the other information you may want. Directly below the header picture the site tells you that marijuana is available for $6 per gram and clones for $20.

The next line informs you that clone buyers can purchase an interim supply for $4.20 per gram. A little something to hold you while you wait four months for your first harvest.

Everything is done in a delightful direct soft-sell. It is hard not to like these people.

The clone part of the business has a unique twist. Each plant is sent in a special container called the THC Clone Shipper. The THC Clone Shipper is a pot with a protective top just for shipping small plants. The top even has a built-in LED light to keep the plant in a vegetative state in transit.

The Clone Shipper is not just for shipping marijuana plants. It is used to ship aquarium plants, live coral, heirloom vegetables, or any other kind of seedling. A nice video shows how well they work. In May of 2017, THC Biomed bought the U.S. company that makes the Clone Shipper giving it an excellent entry into the U.S. market without being connected directly to cannabis.

WeedMD, Inc.

WeedMD, Inc. (TSXV: WMD) is a licensed producer and seller of medical marijuana whose primary focus is providing consistent, quality medicine to the assisted living and long-term care markets in Canada through a comprehensive platform developed exclusively for that industry.

WeedMD is not neglecting other business opportunities. WeedMD provides service to all patients and is preparing for the potential nationwide legalization of recreational marijuana. 

The company has a current production capacity of about 1,500 kilos per year and expansion plans in place to increase production for the fall 2018 harvest. The full expansion plan includes purchase options for greenhouse space and land which could push production capacity over the 100,000 kilos per year mark.

WeedMD just began selling a line of medical cannabis-based oils containing THC, CBD and a combination of both.

Final Thoughts

All these companies are smaller players in the Canadian cannabis industry with plans for doing more significant business. There is a risk in investing in their stocks, but there could be substantial rewards. Visit all their websites and see what you think.

 

The author has no direct investment in BLO, HVST, IN, IMH, MYM, THC, or WMD. The author may have an indirect stake in these companies through ownership of shares in the Horizons Marijuana Life Sciences Index ETF (TSX: HMMJ).

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