With the second quarter of 2018 officially wrapped up and as cannabis investors prepare up for the challenges the second half of 2018 has in store for them, the Investing News Network (INN) counts the top performing stocks of Q2.
As explained in INN’s Q2 2018 cannabis update, the industry has continued a path of maturity in the public markets and de-risking thanks to the entrance of large Canadian banks.
During the quarter the industry started to recover from a dip seen throughout the market due to a market correction.
“We had a significant dip down from January to April, I would say, and then again we are starting to move back up as we get closer to legalization,” Yasmin Gordon, senior investment advisor with Canaccord Genuity told INN.
Here’s a look at the top gainers per Canadian exchange during Q2. For a look into the top performing stocks in Q1 2018, click here to read our first quarter stock list.
All the figures and percent changes were obtained with Google Finance and Yahoo Finance for Q2. Stock prices and market caps are current as of market closure on Friday (July 13).
iAnthus Capital Holdings (CSE:IAN)
Q2 percentage increase: 107.84 percent; market cap: $317.55 million; stock price C$6.57
iAnthus is a cannabis operator focussed in the US market. The company has assets and interests in legal states like Florida, Massachusetts, New York and Colorado.
During the second quarter of 2018, iAnthus reported its Q1 results which resulted in US$3.2 million of revenue for the company’s operations.
Choom Holdings (CSE:CHOO)
Q2 percentage increase: 40.66 percent; market cap: $159.506 million; stock price C$1.38
Choom is a cannabis company looking to offer a branding-heavy effort in the cannabis space. The company is a retail operator as it looks to open, where the provinces may allow it, cannabis dispensaries offering legal adult-use product.
During the last quarter the company announced it had secured 10 new retail locations for cannabis shops in Alberta and B.C.
Q2 percentage increase: 27.18 percent; market cap: $250.76 million; stock price C$4.86
CannaRoyalty is another US focused operator raising capital in Canada through the Canadian Securities Exchanges (CSE). CannaRoyalty’s main operations are in California, a state in which it had announced revenue of US$840,000 during the month of April.
The company has continued to pursue businesses and operations in the legal states it operates in to add to its portfolio of cannabis products. During Q2 the company announced its investee company, Anandia Labs, would be getting acquired by Aurora Cannabis (TSX:ACB)
Q2 percentage increase: 44.93 percent; market cap: $159.87 million; stock price C$1.59
WeedMD has been a medically focused LP of cannabis, but as Canada moves closer to the legalization of recreational cannabis, the company has detailed more of its approach into that market.
During the second quarter the company signed a deal to merge with Hiku Brands (CSE:HIKU) and complement each other’s approach to the cannabis space. The merger proposal was terminated after Canopy Growth (TSX:WEED; NYSE:CGC) offered to acquire Hiku outright in July. WeedMD obtained a C$10 million termination fee.
In June the company signed a supplier agreement with Shoppers Drug Mart for medical cannabis to be sold by the retailer. The company also signed onto a joint venture with Phivida Holdings (CSE:VIDA) to develop infused beverages with cannabis.
Organigram Holdings (TSXV:OGI)
Q2 percentage increase: 35.88 percent; market cap: $620.59 million; stock price C$4.82
Organigram is a medical cannabis producer seeking to expand its business as legalization comes to Canada. The company unveiled its branding efforts of the recreational space during this past quarter.
Organigram also has an interest for the international market as it has started expanding into Australia and Germany. During the quarter the company obtained a permit for the export of medical cannabis into Australia.
ICC Labs (TSXV:ICC)
Q2 percentage increase: 10 percent; market cap: $183.12 million; stock price C$1.42
ICC Labs is a company raising capital in Canada while its operations are in South America. The company holds interests in Uruguay and expanded its presence in Colombia throughout the second quarter of 2018.
The company is also seeking to export medical cannabis into Germany thanks to an initial deal with CanPharma GmbH, a licensed importer and wholesaler in the European country.
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Q2 percentage increase: 59.42 percent; market cap: $2.87 billion; stock price C$29.56
MedReleaf is a cannabis licensed producer with a focus into the medical market. This year the company unveiled its recreational brands meant to target the adult-use consumers of cannabis.
MedReleaf stunned the public market after it was first rumored the company was seeking a potential buyer. Finally in May the company confirmed an agreement with Aurora Cannabis, in which Aurora would buy the producer and its shares.
Canopy Growth (TSX:WEED)
Q2 percentage increase: 20.02 percent; market cap: $7.89 billion; stock price C$37.77
Canopy remained on its path of dominance throughout the public markets with a constant flow of deals and collaborations within the industry in Q2.
During the second quarter of 2018, the company became the first cannabis company to list its stock on the New York Stock Exchange under the ticker symbol “CGC.” Since it started trading on the NYSE, Canopy’s share price has increased 11.16 percent to reach a price of US$29.59.
Q2 percentage increase: 37.31 percent; market cap: $843.99 million; stock price C$4.66
Hydropothecary is one of the latest cannabis LPs to join the Toronto Stock Exchange (TSX), having upgraded to the premier stock exchange from the TSX Venture Exchange in June.
The company also revealed its intentions to introduce a recreational brand named HEXO while Hydropothecary will remain active for its medical cannabis market brand.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.