• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Cannabis

Horizons Adds New Cannabis Stocks to Its ETFs

After a difficult quarter for the marijuana sector, two of the most successful cannabis ETFs have added to their basket of stocks.
By DEBRA BORCHARDT
Jan 09, 2019 | 10:00 AM EST
Stocks quotes in this article: HMLSF, MLCPF, CGC, TRSSF, APHA

Cannabis stocks had a terrible fourth quarter as the broader market selloff took cannabis stocks along for the ride into red territory. The Green Market Report Cannabis Company Index fell by 33% in the fourth quarter after a scorching hot third quarter in which stocks jumped over 50%.

One of the most successful cannabis ETFs, The Horizons Marijuana Life Sciences Index ETF  (HMLSF)  (HMMJ: TSX) and its sister ETF Horizons Emerging Marijuana Growers Index ETF (HMJR:NEO) have rebalanced their portfolios adding new companies to the basket of stocks. 

"This has been a difficult quarter for the Marijuana sector, and the slowdown in growth contributed to fewer names being added to HMMJ's portfolio" said Steve Hawkins, President and CEO of Horizons ETFs. "Long-term, we believe there are still quite a few drivers of growth for the sector, including the growth of global medical marijuana opportunity and continued liberalization of marijuana laws in the U.S. Both of these factors could help drive Marijuana stocks further in 2019".

The HMMJ added the following companies:

Name

Ticker

Exchange

Khiron Life Sciences Corp.

KHRN

TSX Venture Exchange

MediPharm Labs Corp.

LABS

TSX Venture Exchange

Auxly Cannabis Group

XLY

TSX Venture Exchange

Khiron Life Sciences Corp.

Back in September, Canaccord Genuity initiated coverage on Khiron Life Sciences with a speculative buy rating and a $3 price target. The stock was C$1.37 at that time and lately was trading near C$1.60. Analyst Kimberly Hedlin said, "In our view, Khiron Life Sciences is positioned to secure a sizeable market share given its first-mover advantage, low-cost operations, robust medical platform and strong management team. We believe the stock provides an attractive entry point with rare exposure to LATAM medical cannabis." Khiron operates in Columbia but is planning on expanding in the region and that could include Mexico. Hedlin went on to add,  "We see further upside through international licensing agreements, the launch of branded CBD and THC products (expected in 12-18 months), and potential insurance coverage for cannabis prescriptions within the next two years (which could potentially double our value if prices and volumes rise as expected)."

Last month the company said that it completed its acquisition of the Latin American Institute of Neurology and the Nervous System. The company said that the ILANS network represents 100,000 patients in Colombia and will position Khiron with approximately C$10.5 Million in gross revenue. Khiron also said that the acquisition will provide a secure and scalable revenue stream and opportunity to enhance profitability from introducing medical cannabis to ILANS patients.

MediPharm Labs

MediPharm Labs Corp.  (MLCPF)  (LABS:TSXV) is fairly new to the public markets. It was founded in 2015 and was the first licensed producer of cannabis oil production in Canada. MediPharm has an extract supply agreement with Canopy Growth Corp.  (CGC) which states that Canopy has committed to buying 450kg of cannabis extract from MediPharm over the next 18 months, with an option to buy another 450kg. 

The company also just announced that it entered into an initial three-year extraction agreement for processing of dried cannabis to cannabis oil concentrates with TerrAscend Corp.  (TRSSF)  (TER:CSE).  The agreement stated that TerrAscend will supply bulk quantities of dried cannabis to MediPharm for processing on a fee for service basis into bulk resin or other premium cannabis oil derivative products sold under TerrAscend brands. "We are off to a strong start in 2019 with the addition of TerrAscend to our portfolio of high-quality cannabis oil extraction partners," said Mr. Pat McCutcheon, President and CEO, MediPharm Labs. "This Agreement and others like the one we've signed with TerrAscend, provide steady operational throughput, increased efficiency and a solid revenue base as we scale our business to 250,000 KG of dried cannabis extraction capacity annually."

Auxly Cannabis

Auxly was once known as Cannabis Wheaton and is a group of entrepreneurs that invest strategically in cannabis companies. As of the third quarter the company had over $236 million in cash and cash equivalents. The company's platform is characterized by three different verticals: Upstream, Midstream and Downstream. The upstream segment acquires cultivation capacity. The midstream focus is on intellectual property and the downstream is centered on the distribution channel. 

In the company's last quarterly report it said that it's cornerstone midstream asset Dosecann entered into a definitive international supply agreement with Aphria (APHA) . Auxly also said that its acquisition of KGK Science will bring clinical study and research study capabilities in-house to support the Dosecann product pipeline expected to launch in late 2019. 

HMJR

The Emerging Marijuana Growers Index or HMJR is a basket of primarily North American publicly listed small-cap companies. It added the following names to its portfolio:

Name

Ticker

Exchange

FSD Pharma Inc.

HUGE

Canadian Securities Exchange

Harvest Health & Recreation

HARV

Canadian Securities Exchange

Emerald Health Therapeutics

EMH

TSX Venture Exchange

Neptune Wellness Solutions

NEPT

Toronto Stock Exchange

Elixinol Global Ltd.

EXL

Australian Stock Exchange

Trulieve Cannabis Corp.

TRUL

Canadian Securities Exchange

Eve & Co. Inc.

EVE

TSX Venture Exchange

Rubicon Organics Inc.

ROMJ

Canadian Securities Exchange

Heritage Cannabis Holdings Corp.

CANN

Canadian Securities Exchange

Biome Grow Inc.

BIO

Canadian Securities Exchange

GTEC Holdings Ltd.

GTEC

TSX Venture Exchange

 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Borchardt had no positions in any securities mentioned.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider several names mentioned to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

TAGS: Investing | Cannabis

More from Cannabis

Is a Stealth Bull Market Developing in These Long-Suffering Sectors?

James "Rev Shark" DePorre
May 16, 2022 11:10 AM EDT

I have my eye on relative strength in groups that have lagged for a very long time.

As the Market Struggles to Bounce Back, Here's My Game Plan

James "Rev Shark" DePorre
May 12, 2022 11:04 AM EDT

Many stocks are very oversold, and sentiment is about as bad as it gets.

A New Pot ETF Just Lit Up, So Let's Get Deep Into the WEEDs

Mark Abssy
Apr 21, 2022 1:35 PM EDT

Here we'll hash out the differences among cannabis players and see high how Roundhill Investment's The Cannabis ETF can go.

Mosaic's Chart Pattern Suggests Its Share Price Could Grow Even Bigger

Ed Ponsi
Apr 8, 2022 10:00 AM EDT

Pressure on fertilizer supplies due to sanctions against Russia because of the war in Ukraine makes the potash producer a star performer in a down market.

I Wouldn't Go 'All In' on Tilray, But Here's How I'd Trade It

Stephen Guilfoyle
Apr 6, 2022 10:50 AM EDT

Tilray is okay in my book for speculation.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:01 PM EDT PAUL PRICE

    A Recent Director Buy in Children's Place (PLCE)

    Four of the most recent insider trades in Children...
  • 07:34 AM EDT PAUL PRICE

    A $525,000 Vote of Confidence on Macerich (MAC)

  • 09:49 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Stop Wishing, Hoping, and Praying and Take Control...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login