Canadian cannabis stocks have been booming in the last year, with investors clamoring to get into the space ahead of national legalization slated for this summer. Many marketwatchers are familiar with the big companies in the market such as Canopy Growth (TSX: WEED), Aurora (TSX: ACB) or Aphria (TSX:APH), to name a few. But, what about the small caps in the cannabis market?
Many investors prefer to watch smaller market cap companies because of the potential for exponential return on investment. These stocks are no doubt somewhat risky, especially in such a volatile industry, but the gains can be explosive. So, which small market caps in the industry are worth taking a look at?
With so many to choose from, the Investing News Network (INN) has narrowed it down by selecting cannabis stocks with a market cap between roughly $15 million and $50 million. The companies below are listed from largest market cap to lowest market cap, with all numbers and figures current as of March 27, 2018.
See below to check out which penny cannabis stock might be your favourite.
1. Nanosphere Health (CSE:NSHS)
Market cap $51.87 million; current share price: $0.54
Nanosphere Health is actually a nano-biotechnology company with a cannabis division. The company’s flagship cannabis product is its Nanosphere delivery system, which improves the chemical compound’s absorption, and distribution in the body.
Nanosphere is focused on standardizing the results of ingesting edibles. In particular, the duration of time before the psychoactive effects kick in, as well as how much is absorbed. For this Nanosphere offers an intraoral product that dissolves within the mouth, and a internasal, in the nose. The cannabis stock won the Dope Cup award in 2017 for the best transdermal product.
2. FinCanna Capital (CSE:CALI)
Market cap $50.11million; current share price: $0.72
FinCanna is a royalty company for the licensed medical cannabis sector. The Canadian cannabis stock is focused on the Californian medical market in the US, as its stock ticker would suggest. The company claims this is because the state is “the sixth largest economy in the world and the largest medical cannabis market in North America.”
Some of FinCanna’s royalty portfolio includes companies such as Cultivation Technologies, a cannabis producer whose Coachella facility will hand over 14 percent to FinCanna, and Green Compliance, a technology company specializing in point-of-sale software for cannabis merchants.
3. Kalytera (TSXV: KALY)
Market cap $46.04 million; current share price: $0.35
This cannabis stock is yet another pharmaceutical firm. Kalytera is presently at a clinical stage of cannabinoid therapeutic products. Kalytera is developing new CBD formulations to increase bioavailability of the compound, as well as to target specific diseases.
One such disease the company has targeted is Graft versus Host Disease (GvHD), occurring in patients who have undergone transplants. The company is developing a CBD compound to prevent and treat the illness. Kalytera is also focused on a non-psychoactive portfolio of patents and products, which includes synthetics.
4. Viridium Pacific Group (TSXV:VIR)
Market cap $45.12 million; current share price: $0.99
Viridium Pacific Group is headquartered in Calgary, AB, with a 8,300 square-foot indoor cannabis facility in Mission, BC. The Canadian cannabis stock is a parent company to a number of operating subsidiaries, one of which is licensed producer, Experion Biotechnologies in Abbotsford, BC.
5. Quadron Cannatech (CSE:QCC)
Market cap $29.09 million; current share price: $0.39
Quadron is focused on ancillary equipment, products, scientific services, as well as research and development for licensed producers. From extraction to processing, the cannabis stock has an array of products on offer.
It is a parent company to subsidiaries Greenmantle, Cybernetic Control Systems, and Soma Labs Scientific. Soma Labs is focused on its team’s expertise in CO2 extraction technology and products within that niche. Greenmantle specializes in consumption products like encapsulation products, as well as ancillary products like vaporizer pens. Cybernetic Control provides equipment to licensed producers. This includes machines for automation, to reporting systems, to robotics.
6. Veritas Pharma (CSE:VRT)
Market cap $24.23 million; current share price: $0.49
Veritas is sixth on our Canadian cannabis stocks list of small caps. Veritas is led by a team of scientists and makes emphasis to its research and development (R&D) side of the business. The company claims to take a three pronged approach to R&D, citing its first step to chemically profile cannabis cultivars, secondly to create a pharmacological profile for specific ailments, and finally to perform clinical trials. Veritas believes that this scientific approach will serve to validate cannabis treatments and thereby association will make its company a favourite for health professionals.
The company currently has a number of cannabis strains which are scheduled for human clinical trials later in 2018. The strains will be tested for treatment of chronic pain, nausea, and Post-Traumatic Stress Disorder.
7. Lotus Ventures (CSE: J)
Market cap $26.39 million; current share price: $0.46
Lotus Ventures is next on our small cap cannabis stock list, and is based out of Vancouver, BC. This company has an application to become a licensed producer with the Access to Cannabis for Medical Purposes Regulations designation. The firm is building a 22,500 square foot facility in Armstrong, BC, which is due to be complete this spring.
Lotus has also partnered with Cannabis Wheaton Income (TSXV: CBW), and has received funds by way of private placement from the firm.
8. Global Cannabis Applications (CSE:APP)
Market cap $17.53 million; current share price: $0.30
Global Cannabis is a technology firm that offers its suite of tools for cannabis companies from production to retail. Its Citizen Green platform aggregates anecdotal and clinical trial data which then prequalifies candidates for clinical studies. The company suggests that this increases the speed and efficiency of the approval process for medical marijuana products.
The Citizen Green platform includes mobile apps and uses blockchain technology for its data collection, as well as its digital reward system which doles out digital coins to its members as part of its loyalty program.
9. Lineage Grow Company (CSE:BUDD)
Market cap 16.12 Million; current share price: $0.26
Lineage Grow develops state of the art cultivation facilities and craft cannabis. The company has opted for small batch production techniques such as its Deep Water Culture, and Precision Agriculture technologies. The company claims that these innovations create craft cannabis at a commercial scale and cost. Lineage uses sensors and probes, as well as automated grow systems to cultivate its cannabis.
10. Vodis Pharmaceuticals (CSE: VP)
Market cap $12.46 million; current share price: $0.32
The last cannabis stock on the list is Vodis Pharmaceuticals. The company has two facilities, one in Bellingham, WA, and the other in Delta BC. The company is currently awaiting its final inspection of its BC facility. Vodis describes itself as being “somewhere between a premium micro-brewery and a cutting edge pharmaceutical company.” The company owns 100 percent of its Vodis USA subsidiary, which has completed licensing of its second phase of facility expansion in Bellingham.
Which small cap cannabis stock is your top pick, and why?
Want more details? Check out these articles for more INNdepth coverage.
- Cannabis Companies: Stocks on the TSXV
- Invest in Cannabis: TSX Cannabis Stocks
- Cannabis stocks on the CSE25 Index
- CSE Marijuana Stocks
- 10 Big-cap Canadian Cannabis Stocks
- Are Canadian Marijuana Stocks a Good Investment?
- Top Canadian Cannabis Stocks Year-to-Date
- Cannabis Investment: Canadian Cannabis Stocks
Want an overview of investing in cannabis stocks? Check Investing in the Cannabis Industry
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Editorial Disclosure: FinCanna, Global Cannabis, Lotus, Nanosphere, and Vodis are clients of the Investing News Network. This article is not paid for content.
Securities Disclosure: I, Amanda Kay, presently hold no direct investment interest in any company mentioned in this article.