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Analysts' Ideas of the Week
Introducing Reddit Sentiment Tracker
February 8, 2021
www.researchfrc.com
Page 2
Reddit Sentiment Tracker
We started tracking Reddit considering the impact retail investors had on the overall market in
the past few weeks, as seen from the large price movements of GME, AMC, and silver. Our
goal is to identify potential movers for the coming week. For this, we tracked some of the most
discussed stocks in the past week (table below). We noticed that the top two (GME and AMC)
are experiencing a decline in the number of discussions, while there is a significant increase in
the Reddit score (an indicator of volume of mentions) for Amazon (NASDAQ: AMZN) and
Blackberry (TSX: BB). Based on this, we believe the biggest movers this week are likely to be
these two stocks. We anticipate short-term downward pressure on AMZN as retail investors
seem to still be trading on the information of Jeff Bezos stepping down as CEO. We have a
positive outlook on BB, given the company’s renewed focus in the cybersecurity space and a
low EV/R of 7x vs the sector average of 9x.
Most Discussed Stocks
February 8, 2021
Company Ticker Sector Reddit Score % change (7d) YTD 1-Week 1-Year
GameStop Corp. GME Consumer Discretionary -5.84% 235% -41% 1,393%
Nokia Oyj NOK Technology -9.17% 8% -7% 0%
AMC Entertainment Holdings Inc. AMC Consumer Discretionary -67.43% 197% -20% -9%
BlackBerry Ltd. BB Technology 206.99% 103% 4% 127%
Amazon.com Inc AMZN Consumer Discretionary 2,301% 3% -2% 56%
AVERAGE 109% -13% 313%
MIN 3% -41% -9%
MAX 235% 4% 1,393%
Indexes YTD 1-Week 1-Year
S&P 500 6% 3% 16%
Source: Yahoo! Finance, Unbiasedstock.com, Reddit, and FRC
FRC Top Picks
The following table shows last week’s top five performers among our Top Picks,
including three junior resource companies (two electric vehicle metals and one gold),
one cannabis, and one betting/gaming company. E3 Metals (TSXV: ETMC), up 34%
WoW, has been the top performer for two weeks in a row, on the back of a $7M
bought deal financing, and the opening of a direct lithium extraction development and
testing facility in Calgary. Additional comments are presented later in this report.
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Top Five Performers Last Week
Source: FRC
Our top picks were up 83% (on average) since the initiation of coverage vs the
benchmark’s (TSXV) 16%.
Source: FRC
Performance by Sector
Source: FRC
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Our complete list of top picks (updated weekly) can be viewed here.
The following tables presents changes in this AIW in ratings/fair value estimates/EPS
projections of companies under coverage:
Source: FRC
Weekly Mining Commentary
Global equity markets rallied in the past week due to a continued decline in new cases
of COVID-19 in most of the hardest nations, vaccine rollout, and expectations of Biden’s
next stimulus package. All seven indices we track reported gains (orange bars).
Source: FRC / Various
Silver prices dropped 4% after a 13.5% gain in the prior week. As detailed in our
report last week, the price run-up was instigated by retail traders on Reddit. As silver
has relatively fewer short positions (compared to GameStop/NYSE: GME and AMC
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Entertainment/NYSE: AMC), we were not expecting the Reddit army to trade silver for
too long. Base metals moved up due to the above-mentioned factors relating to
equity indices.
Inventory levels of copper and zinc declined on the LME, and increased on the SHFE
(Shanghai), providing us mixed signals.
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Valuations of gold and base metals producers were up 2% and 3%, respectively,
in the past week.
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Except Spain, almost all of the hardest hit nations continue to experience a decline in
daily new cases of COVID.
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Source: https://www.worldometers.info/coronavirus/
9.4% of the U.S. population has received vaccinations vs 7.6% at the same time last
week. This compares to 17.7% in the U.K. (up from 13.7%). Israel and the UAE are at
over 40%. The U.S. is currently administering over 1.2M doses per day, unchanged
from the prior week. We estimate that 25% of the population will be vaccinated by
June 2021, and 50% by October 2021.
We continue to expect an economic recovery in H2-2021. Recent economic data from
the U.S. and China (shown below) are suggesting that both economies are in
recovery-mode.
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U.S. Unemployment U.S. Manufacturing Index
China GDP Growth China Manufacturing Index
We are raising our silver price forecast from US$20 to US$22.5/oz based on our
outlook for economic conditions. We are not making any changes to our other price
forecasts:
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In the following section, we review companies that announced key developments in the
past week.
Mining / Exploration
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Inca One Gold TSXV: IO $0.53 $1.45 Feb 2, 2021
Corp
PR Content FRC Opinion
In the quarter ended December 2020, the Positive – We were pleased with the results
company generated US$10M in revenue, as the company had significantly scaled
up 3% YoY. Gold production was 5,399 back activities (from March to July) due to
ounces, up 56% QoQ, but down 9% YoY. the pandemic. Production has been ramping
The processing rate was 134 tpd in up since July. We are raising our revenue
December vs just 35 tpd during fiscal Q1 forecast for 2021 (year ended April 2021)
(May-June 2020). from $28M to $31M from sales of 16.5 Koz
gold (previously 15 Koz). We are also
adjusting our EPS forecast from -$0.04 to -
$0.03.
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
E3 Metals TSXV: ETMC $3.40 $4.20 Feb 2, 2021
PR Content FRC Opinion
Opened a direct lithium extraction Positive – As a result of the recent
development and testing facility advancements, we are lowering the
in Calgary. discount rate of our DCF model from 15% to
12.5%, which resulted in an increase in
valuation from $2.53 to $4.20 per share.
Construction of a pilot plant is expected to
commence this year.
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Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Noram TSXV: NRM $0.90 $1.27 Feb 2, 2021
Ventures Inc.
PR Content FRC Opinion
Additional results from its ongoing drill Positive - The grade is in line with the
program showed 1,121 ppm lithium over existing resource estimate. Noram is
120 ft, from one of the six completed pursuing a 12-hole program. The current
holes program is targeting mineralization to a
depth of up to 500 ft. The existing resource
on the project only accounts for
mineralization to a depth of 100 m.
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Eskay Mining TSXV: LMR $2.95 N/A Feb 1, 2021
Corp.
PR Content FRC Opinion
Entered into a share-swap agreement Neutral – As GGI holds properties close to
with Sprott to acquire 24M shares of Eskay’s assets in B.C., we believe this
Garibaldi Resources Corp. (TSXV: GGI) transaction might be an indication that
for $11M, by issuing equivalent shares Eskay is likely to have a go at GGI. GGI’s
and warrants of Eskay. market is $68M vs Eskay’s $469M. GGI’s
shares are down 27% YoY, which is
probably what prompted Eskay to make
such a move. We also note that the share-
swap deal itself is not that favorable for
Eskay as it had to issue free warrants to
Sprott.
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Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Wealth Minerals TSXV: WML $0.20 N/A Feb 3, 2021
Ltd
PR Content FRC Opinion
Closed a non-brokered private placement Positive – We expect upside on WML’s
at $0.10 per unit for gross proceeds of investment in WCU. WCU’s properties in
$1.6M. World Copper (TSXV: WCU) Chile hold 1.5Blbs indicated, and 2.4Blbs
completed its previously announced inferred resources. WCU is currently trading
transaction, and shares started trading at just $0.007 per lb vs the comparables
last month. WML owns 18.9% of WCU’s average of $0.024.
shares.
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Panoro TSXV: PML $0.17 $0.77 Feb 1, 2021
Minerals Ltd. Feb 8, 2021
PR Content FRC Opinion
Mapping and geochemistry at its Positive - Exploration at Humamantata is
Humamantata project in Peru identified fully funded by partner, Japan Oil, Gas and
new mineralization over a 2.5 km strike. Metals National Corporation ("JOGMEC").
Results of a geophysical survey are JOGMEC is funding US$8M to earn a 60%
pending. Panoro expects to commence interest in the project. Humamantata is one
drilling (2,400 m over two targets located of PML’s nine projects in southern Peru. Its
approximately 2.5 km apart) shortly upon flagship assets have a combined AT-NPV at
receipt of permits. 7.5% of US$989M, as per Preliminary
Economic Assessments. Panoro’s market
cap is just $40M. Wheaton Precious Metals
(TSX: WPM) has committed to providing
US$140M in financing for PML’s largest
project, Cotabambas.
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Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Giga Metals TSXV: GIGA $0.68 $1.01 Feb 1, 2021
Corporation Feb 3, 2021
PR Content FRC Opinion
Acquired exploration permits (40,722 ha) Positive - Sediment-hosted deposits have
in northeast Brazil. The package includes potential to hold large deposits, with high
four properties along a 80 km strike in an copper grades. Kupferschiefer is Europe’s
area known to hold Kupferschiefer-style largest copper producer, and the world’s
sediment hosted copper mineralization. largest silver producer. GIGA is planning
preliminary exploration. We consider this to
be a good move as it offers diversification
across both commodity and region. A recent
PEA on the flagship Turnagain nickel-cobalt
project in B.C. had confirmed that the
project can produce nickel concentrate for
electric vehicles.
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
GR Silver TSXV: GRSL $0.76 $0.98 Feb 1, 2021
Mining Ltd. Feb 8, 2021
PR Content FRC Opinion
Drill results from the Plomosas silver Positive - These results are encouraging
project in Sinaloa, Mexico continue to for Plomosas' upcoming maiden resource
return encouraging values: estimate. Note that our fair value estimate is
solely based on GRSL’s San Marcial silver
➢ 8.6 m @ 6.50g/t Au, 79 g/t Ag, 0.7 % project, which has an indicated resource of
Pb, 5.8 % Zn (928 g/t AgEq 1) 36 Moz (147 gpt AgEq), and an inferred
➢ 5.4 m @ 9.06 g/t Au, 76 g/t Ag, 1.5 % resource of 11 Moz (108 gpt AgEq).
Pb, 4.6 % Zn (1,181 g/t AgEq)
➢ 61.1 m @ 0.4 g/t Au, 30 g/t Ag, 0.9 %
Pb, 1.1 % Zn and 0.2 % Cu (144 g/t
AgEq)
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Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Lomiko Metals TSXV: LMR $0.14 $0.21 Feb 1, 2021
Inc.
PR Content FRC Opinion
Increased ownership of the La Loutre Positive – We were expecting this increase,
flake graphite project in Quebec, from and have been valuing LMR based on
80% to 100%, for $1.13M. 100% ownership. The company recently
retained SGS Canada to conduct
metallurgical tests, and is planning a PEA.
The share prices of graphite juniors have
been trending up due to an increase in
graphite prices, as well as positive investor
sentiment on EV metals stocks. We are
raising our fair value estimate on LMR from
$0.12 to $0.21 per share, as the
comparables average enterprise value has
moved up from $8 to $26/t since our
previous report.
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Falcon Gold TSXV: FG $0.10 $0.29 Feb 2, 2021
Corp Feb 4, 2021
PR Content FRC Opinion
Completes 1,890 m of drilling at the Positive – Initial results of the drill program
Central Canada gold mine project in returned broad zones of mineralization.
Ontario. In 2020, FG completed 17 holes Mineralization has been traced from surface
totalling 2,943 m. The company also to a depth of over 161 m. Central Canada is
entered into an agreement to purchase a a historic producer, and is just 20 km east of
large/3,955 ha prospective gold property. Agnico Eagle’s (NYSE: AEM) Hammond
in central B.C. for $15k in cash, 200k Reef gold project. In addition to Central
shares, and 200k warrants. The claims, Canada, the company has a number of gold
named Gaspard, are considered to be an and polymetallic projects, including the
extension of the Spences Bridge Gold recently announced Gaspard claims.
belt.
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Technology and Special Situations
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Kontrol CSE: KNR $5.52 $6.74 Feb 4, 2021
Technologies
Corp.
PR Content FRC Opinion
Announced that the Ontario government Positive – We are pleased to see BioCloud
is providing $2M to the company to help getting strong support from the government,
commercialize and accelerate the which indicates the strong possibility of
production of BioCloud. The company potential large-scale use of the device in
announced that it plans to increase public service areas in Ontario. We are
production capacity to 20,000 units per estimating revenues of $12M in 2020, and
month. $1.2M of the funds are to be $29M in 2021.
provided immediately, the rest to follow
upon completion of certain milestones by
March 30, 2021.
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Kidoz Inc. TSXV: KIDZ $0.50 $1.08 Feb 1, 2020
PR Content FRC Opinion
Kidoz’s network increased from 100M to Positive – We are expecting record Q4
300M users in 2020. The company also results, which are likely to be published next
reported that it had over 1B paid month. We also expect growth to continue
impressions, up 40% YoY. in 2021, as digital ad spending worldwide is
expected to increase 17% in 2021 (Source:
eMarketer). Our revenue forecasts for Kidoz
in 2020 and 2021 are $6M and $12M
respectively. Despite this positive
announcement, Kidoz shares are down 6%
from our previous report in November 2020.
We expect Q4 financials to be a catalyst for
the share price.
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Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Elys Game NASDAQ: US$5.95 US$6.78 Jan 28, 2021
Technology, ELYS
Corp.
PR Content FRC Opinion
Announced that its unaudited net gaming Positive – We were pleased to see ELYS
revenue increased 26% to US$13.1 meet our revenue projection for the year of
million in Q4-2020, compared to US$10.4 $37M. Our forecast for 2021 is US$46M
million Q4-2019. Additionally, web-based (unchanged). Currently, 100% of the
gross gaming revenue increased by revenue comes from its Italian operations.
approximately 69% in Q4 2020 YoY. We expect the company will be able to
commence its U.S. operations in Q1-2021
(currently awaiting its first sports betting
license).
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Banxa Holdings TSXV: BNXA $2.60 N/A Feb 2, 2021
Inc.
PR Content FRC Opinion
Announced record Total Transaction Positive – We are pleased to see the
Value (TTV) for January 2021 of $53.7M, company benefitting from the recent surge
up 1,000% YoY. in cryptocurrency trading. Transaction
volume of cryptocurrencies directly impacts
BNXA’s revenue. We intend to publish our
initiating report this month.
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Cannabis
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Delta 9 Cannabis TSX: DN $0.55 $1.24 Feb 4 & 5, 2021
Inc.
PR Content FRC Opinion
Announced that it has completed a Positive – We are pleased to see DN
service agreement with another client continuing to establish its B2B Services
with a cannabis micro cultivation license. market, which speaks to the industry’s
DN has sold over 250 grow pods to interest in its grow pods for cultivation. We
business clients in Canada. Management also find the announcement of opening
also announced its plans to open its tenth another retail store to be encouraging. We
retail store. This new store will be in are conservatively projecting 12 stores by
Manitoba, making it the company’s the end of 2021. B2B revenue accounts for
seventh in the province. The company 23%, and retail store revenue accounts for
also stated that it plans to have 20 stores 58%, of our estimated $55M revenue in
by the end of 2021. 2020. We are estimating $71M in revenue in
2021 (unchanged).
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Grown Rogue CSE: GRIN $0.25 $0.31 Feb 5 & 8, 2021
International Inc.
PR Content FRC Opinion
Announced the closing of a US$1M Positive – We are pleased to see the
financing through equity and debt. company able to raise funding for expansion
Management stated that they plan to use in Michigan (acquisition expected to be
the funds for expanding operations in completed in Q2). We believe the added
Michigan. The company also added to its capacity is timely, considering the recent
indoor growing capacity in Oregon surge in cannabis sales in Oregon. In light
through a service agreement with of the recent developments, we are lowering
Acreage Holdings (CSE: ACRG). our DCF model’s discount rate (from 15% to
14%), and revising the fair value estimate
from $0.29 to $0.31. Our revenue outlook
remains unchanged at $4M in 2020, and
$10M in 2021.
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Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Captiva Verde CSE: PWR $0.36 $0.95 Feb 7, 2021
Land
Corporation
PR Content FRC Opinion
Announced that it is raising $2.7M Positive – We are maintaining our outlook,
through a private placement, with units and 2021 revenue estimate at $22.95M.
priced at $0.27 per share, with a warrant
at $0.75 per share. Funds will be used for
working capital.
Company Ticker Current Share FRC Fair Value Date of PR:
Name: Symbol Price: Estimate:
Kaya Holdings OTCQB: $0.52 N/A Feb 1, 2021
Inc. KAYS
PR Content FRC Opinion
Announced that its Greek joint venture Neutral – We are pleased to see the
has engaged Dutch-based Orange Ridge company moving along with its Europe
Capital to raise up to $45 million for its expansion plans. Completion of the
planned 15-acre cannabis cultivation and proposed financing will be critical.
processing facility in Thebes, Greece.
According to management, the facility has
received an installation license from the
Greek Government, and is ready to
commence construction. The company
has contracted a local company to
develop up to 270,000 sq. ft. of
greenhouses, and 80,000 sq. ft. of
extraction and processing facilities.
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Weekly Cannabis Commentary
Cannabis Industry Performance
February 5, 2021
Company YTD 1-Week 1-Year
Aphria Inc. 139% 34% 246%
Aurora Cannabis Inc. 52% 13% -52%
Canopy Growth Corp. 73% 8% 90%
Cronos Group Inc. 74% 16% 53%
Tilray Inc. 205% 35% 46%
HEXO Corp. 112% 22% 41%
Organigram Holdings Inc. 75% 26% -12%
The Supreme Cannabis Co., Inc. 82% 71% -39%
AVERAGE 101% 28% 47%
MIN 52% 8% -52%
MAX 205% 71% 246%
Indexes YTD 1-Week 1-Year
HMMJ 67% 21% 54%
MCAN 61% 21% 73%
XCAN 69% 20% 53%
Source: TMX Money, FRC
Over the past week, the Horizons Marijuana Life Sciences ETF (TSX: HMMJ / “HMMJ”),
the Standard & Poor’s/MX International Cannabis Index (“MCAN”), and the Standard &
Poor’s/TSX Cannabis Index (“XCAN”) generated returns of 21%, 21%, and 20%,
respectively. Aphria (“APHA”) and Tilray (“TLRY”) both had notable returns, as they
announced their plans to expand in Europe (Germany, Portugal, and Spain). We also
believe that rising optimism for federal legalization in the U.S. was a factor for the price
run-up.
Valuation of Select Canadian LPs
The following chart shows the average Enterprise Value to Revenue (“EV/R”) ratio of
the Canadian cannabis companies we track.
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Average EV/R (October 2019 – February 2021)
January 29, 2021 February 05, 2021
Company Ticker TEV/Revenue TEV/EBITDA TEV/Revenue TEV/EBITDA
Aphria Inc. TSX: APHA 8.9 83.2 11.9 111.4
Aurora Cannabis Inc. TSX: ACB 9.7 NM 10.9 NM
Canopy Growth Corp. TSX: WEED 38.2 NM 40.9 NM
Cronos Group Inc. TSX: CRON 92.0 NM 112.3 NM
Tilray Inc. NASDAQ: TLRY 15.1 NM 20.7 NM
HEXO Corp. NYSE: HEXO 9.8 NM 12.1 NM
Organigram Holdings Inc. TSX: OGI 6.5 NM 8.4 NM
The Supreme Cannabis Co., Inc. TSX: FIRE 3.7 NM 5.3 NM
AVERAGE 23.0 NM 27.8 NM
MEDIAN 9.7 NM 12.0 NM
MINIMUM 3.7 NM 5.3 NM
MAXIMUM 92.0 NM 112.3 NM
Source: S&P Capital IQ, FRC
The average EV/R, as of February 5, 2021, was 27.8x – a WoW increase from 23.0x.
The average EV/R, from October 7, 2019, to February 5, 2021, was 12.7x.
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Canadian Retail Cannabis Pricing
Province (As of 2021/2/8) Average Price per Gram Average Price per Gram THC Average Price per Gram CBD # of Products Min. Price Max. Price
B.C. $ 9.68 $ 9.78 $ 8.42 173 $ 3.93 $ 15.71
Ontario $ 9.68 $ 9.88 $ 8.08 319 $ 4.00 $ 23.98
Quebec $ 9.39 $ 9.38 $ 9.55 226 $ 4.85 $ 21.68
Alberta $ 11.40 $ 11.39 $ 11.39 335 $ 3.93 $ 22.00
N.B. $ 9.91 $ 10.16 $ 7.58 178 $ 3.57 $ 16.28
P.E.I. $ 9.75 $ 9.77 $ 9.49 165 $ 2.20 $ 23.30
Newfoundland $ 10.12 $ 10.08 $ 10.36 155 $ 4.46 $ 15.40
Yukon $ 14.98 $ 15.07 $ 13.95 12 $ 10.49 $ 16.15
N.S. $ 10.37 $ 10.42 $ 9.82 180 $ 5.36 $ 42.85
Nunavut $ 12.91 $ 13.04 $ 12.41 33 $ 5.19 $ 17.91
Northwest Territories $ 14.68 $ 14.68 2 $ 12.08 $ 17.28
Manitoba $ 11.42 $ 11.36 $ 11.62 326 $ 4.90 $ 20.43
Saskatchewan $ 12.47 $ 12.49 $ 12.08 191 4.95 38.50
CANADA $ 11.29 $ 11.35 $ 10.40
Province (As of 2021/2/1) Average Price per Gram Average Price per Gram THC Average Price per Gram CBD # of Products Min. Price Max. Price
B.C. $ 9.60 $ 9.70 $ 8.42 162 $ 3.93 $ 15.71
Ontario $ 9.70 $ 9.90 $ 8.08 316 $ 4.00 $ 23.98
Quebec $ 9.29 $ 9.27 $ 9.55 221 $ 4.85 $ 15.06
Alberta $ 11.44 $ 11.44 $ 11.39 334 $ 3.93 $ 22.00
N.B. $ 9.89 $ 10.14 $ 7.58 173 $ 3.57 $ 16.28
P.E.I. $ 9.75 $ 9.77 $ 9.49 165 $ 2.20 $ 23.30
Newfoundland $ 10.12 $ 10.08 $ 10.36 155 $ 4.46 $ 15.40
Yukon $ 14.98 $ 15.07 $ 13.95 12 $ 10.49 $ 16.15
N.S. $ 10.37 $ 10.42 $ 9.82 180 $ 5.36 $ 42.85
Nunavut $ 12.91 $ 13.04 $ 12.41 33 $ 5.19 $ 17.91
Northwest Territories $ 14.68 $ 14.68 2 $ 12.08 $ 17.28
Manitoba $ 11.41 $ 11.36 $ 11.62 322 $ 4.90 $ 20.43
Saskatchewan $ 12.56 $ 12.59 $ 12.08 186 4.95 38.50
CANADA $ 11.28 $ 11.34 $ 10.40
Source: Online Provincial Cannabis Stores, FRC
The average retail price per gram increased week-over-week from $11.28 to
$11.29. The below chart shows Canadian retail dried cannabis flower pricing since we
initiated price coverage.
Canadian Retail Dried Cannabis Flower Pricing
Source: Online Provincial Cannabis Stores, FRC
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Canadian Retail Cannabis Stores
As of February 8, 2021, there are 1,547 retail cannabis stores, a week-over-week
increase of 25 stores across Canada, including 17 in ON, five in AB, and three in B.C.
As we noted before, we continue to see Ontario’s store growth significantly outpace
other provinces due to the recent mandate of the Alcohol and Gaming Commission of
Ontario (AGCO) to increase retail store authorizations.
Nationwide Store Count
Jan-18-2021 Jan-25-2021 Feb-1-2021 Feb-8-2021
Geographic Region Store Count Store Count Store Count Store Count Population Population / Store
Alberta 553 556 561 566 4,428,247 7,824
B.C. 304 306 306 309 5,120,184 16,570
Manitoba 56 56 56 56 1,379,121 24,627
N.B. 20 20 20 20 780,890 39,045
N.S. 21 21 21 21 978,274 46,584
Newfoundland 30 30 30 30 520,437 17,348
Northwest Territories 5 5 5 5 44,982 8,996
Nunavut na na na na 39,486 N/A
Ontario 354 389 409 426 14,745,040 34,613
P.E.I. 4 4 4 4 158,717 39,679
Quebec 57 57 60 60 8,552,362 142,539
Saskatchewan 45 45 45 45 1,181,987 26,266
Yukon 5 5 5 5 41,293 8,259
CANADA 1,454 1,494 1,522 1,547 37,971,020 24,545
Source: Provincial Websites, FRC
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Weekly Psychedelic Commentary
Psychedelic Industry Performance
February 5, 2021
Company YTD 1-Week 1-Year
COMPASS Pathways plc -8% 4% N/A
Numinus Wellness Inc. 32% 13% N/A
Mind Medicine Inc. 18% 19% N/A
Seelos Therapeutics Inc. 115% 52% 246%
AVERAGE 39% 22% 246%
MIN -8% 4% 246%
MAX 115% 52% 246%
Indexes YTD 1-Week 1-Year
PSYK 3% 12% N/A*
*Launched on January 27, 2021
Source: TMX Money, FRC
We have started tracking the psychedelic industry’s performance, following launch of
the Horizons Psychedelic Stock Index ETF (“PSYK”) on January 27, 2021. Over the
past week, the PSYK generated a return of 12%. The pandemic has created a huge
spike in mental health conditions. In the U.S., the Centers for Disease Control
reported that 11% of American adults considered suicide in the summer of 2020, with a
staggering 40% reportedly struggling with mental health or substance abuse.
Companies are creating psychedelic drugs to address these mental health issues.
Currently, there are ongoing clinical trials of drugs including LSD and psilocybin
(psychedelic component), to treat anxiety, depression, and opioid addiction. Data Bridge
Market Research reported that the psychedelic drugs market in North America will grow
at 15.8% from 2020 to 2027, and reach US$7B.
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