FSD Pharma & Canntab Rank Among the Top 2018 Cannabis Stocks
January 21st, 2019
Exclusive, Top Story
The cannabis industry experienced significant growth last year, particularly in Canada following the legalization of adult-use cannabis on a federal level. The upcoming legalization of edible products across Canada could open the door to further growth in 2019 and beyond. Health Canada also continues to work through its backlog of licensed producer applicants to eliminate the current supply shortage and ensure long-term stability.
Let’s take a look at how the cannabis industry performed last year and the companies that are best positioned to profit moving into the new year.
How Did Cannabis Stocks Perform?
The cannabis industry may be experiencing tremendous growth, but public companies have had mixed performance. According to the Marijuana Index, Canadian cannabis companies lost about 47 percent of their value in 2018, although late-2017 and early-2018 made for a tough comparison. Some of the ~20 index component companies also didn’t have licensed producer cultivation or sales permits until later in the year.
The good news is that several companies experienced tremendous growth over the past year, including both well-known and lesser-known companies. Canopy Growth Corp. (TSX: WEED) (NYSE: CGC) registered a modest 23 percent growth rate, while Tilray Inc. (NASDAQ: TLRY) posted the strongest growth at over 340 percent. Investors may want to look between these two extremes for the best long-term opportunities.
Who Were the Best Performers?
FSD Pharma Inc. (CSE: HUGE) (OTC: FSDDF) (FSE: 0K9) was the third strongest performer with a 145.8 percent increase over the period. Based out of a former Kraft plant, the company has 25,000 sq. ft. of dedicated grow space and $55 million in funding to expand to 220,000 sq. ft., as it looks to become the largest producer. The company began harvesting in September 2018 and could produce upwards of 400 million grams of dried cannabis flower per year at full capacity.
In addition to its large facility, the company has investments in three companies that have or will go public, including High Tide, Cannara Biotech, and SciCann Therapeutics. The company also has a joint venture with Auxly Cannabis Group Inc. (TSX-V: XLY), that will fund its Phase I buildout, and Canntab Therapeutics Ltd. (CSE: PILL) that will be manufacturing its innovative oral sustained release tablets at the former Kraft facility.
Canntab Therapeutics Ltd. (CSE: PILL) (TBF1.F) was another top performer last year with a 50 percent increase in price. With several joint venture agreements in place, the company is preparing for the near-term commercialization of its innovative oral sustained release cannabinoid formulations. These high profile deals include agreements with Emblem Inc., NewCanna SAS, and Labsco Promedica to develop and distribute the products worldwide.
Unlike many other medical cannabis firms, the company has an excellent cap structure with no need for short-term financing. The company has also applied to become a licensed producer in Canada and partnered with leading physicians to conduct clinical studies in the pain management space. Over the long-term, the company’s goal is to become the go-to cannabinoid delivery platform for doctors seeking more conventional products.
Canada’s cannabis industry is poised to continue seeing tremendous growth moving into 2019. With the legalization of edibles coming in October, investors could see a significant increase in revenue and profit margins at many licensed producers. Many licensed producers have also started to expand beyond Canada and into other global markets by leveraging the federal-level oversight that’s uniquely available in the country.
FSD Pharma and Canntab could see continued growth moving into the new year. FSD Pharma plans to continue building out its significant fully-funded footprint, while Canntab begins to commercialize its innovative delivery system. Both companies have several upcoming catalysts that investors may want to keep an eye on over the coming year.
For More Information on FSD Pharma please visit the company’s website.
For More Information on CannTab Therapeutics please visit the company’s website.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://www.cannabisfn.com/legal-disclaimer/
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.