The three largest cannabis companies in Canada, in terms of revenue, are Canopy Growth Corporation (WEED), Aurora Cannabis (ACB), and Aphria (APHA). All of them were penny stocks a few years ago. The legalization hype in Canada made their stock prices skyrocket.
The approximate all-time stock price highs:
- WEED: $76
- ACB: $16
- APHA: $24
Then, in 2019, all the significant public figures from these three companies were basically fired. Vic Neufeld, the CEO of Aphria, resigned in January. Bruce Linton, the CEO of Canopy was terminated from Canopy in early July, and now Cam Battley from Aurora is being shown the door.
The stock prices on the close of Friday.
- WEED: $26.35
- ACB: $2.95
- APHA: $6.55
The Cannabis Bubble of Canada has definitely burst. Shorts made an absolute killing this year.
Canopy has $2 billion and Aphria has costs under control with a few hundred million dollars. Aurora is in serious trouble because they're running out of cash and they're not profitable. Their strategy of buying everything before 2019 is now coming to bite them. For instance, they paid roughly $4 billion in stock to buy two other cannabis companies in 2018. Now, their entire market capitalization is ... $3.1 billion! They've had to halt construction to preserve capital. Perhaps, they can sell off a few assets to Canopy or Cronos to survive ...
Quite a few companies are going to die in 2020.