Analysts' Ideas of the Week - www.researchfrc.com October 12, 2021 - Baystreet.ca
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Analysts' Ideas of the Week
This Copper Junior is Getting No Value for Its Advanced Stage Flagship Asset
October 12, 2021
www.researchfrc.com
Page 2
Reddit Discussed Stocks
Our pick last week, Farmmi Inc. (NASDAQ: FAMI), went from US$0.36 on Monday,
to a high of US$0.42 on Friday (up 16.7%). The Electric Vehicle sector remains the
most actively discussed among retail investors, followed by cryptos, cannabis, and
betting. This week, we are observing strong retail sentiment around SoFi Technologies
Inc. (NASDAQ: SOFI). Key parameters used may include – a) total number of mentions,
b) percentage change in the number of mentions, c) stock sentiment, and d) market
capitalization.
Oct 12, 2021
Company Ticker Sector
SoFi Technologies Inc. SOFI Credit Services
Source: FRC
Historic Weekly Returns (Mar 1, 2021 – Present)
27 out of 32 picks have generated positive returns
Average return = 22.97%
*Returns were calculated based on the assumption that picks were sold at their peak the same
week.
*Past performance is not indicative of future performance.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 3
FRC Top Picks
The following table shows last week’s top five performers among our Top Picks,
including one technology company, two EV-metals juniors, and two precious metals
juniors. The top performer, Hello Pal International Inc. (CSE: HP), was up 26.3%. HP
reported encouraging performance data last week (discussed later in this report). Our
prior reports can be viewed here.
Top Five Performers Last Week
Source: FRC
Companies in our Top Picks list were up 41.6% on average since we initiated
coverage vs 0.8% for the benchmark (TSXV).
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 4
Performance by Sector
Source: FRC
Our complete list of top picks (updated weekly) can be viewed here.
Weekly Mining Commentary
Global equity markets were up 0.9% last week, after retreating 2.5% in the prior week.
Source: FRC / Various
The IMF has lowered its 2021 global GDP growth forecast from 6.0% to 5.9% (amid
supply chain issues and weaker consumption in Q3), while maintaining its 2022
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT
Page 5
forecast at 4.9%. They also lowered their U.S. GDP growth forecast from 7.0% to 6.0%.
September jobs data in the U.S. (announced last week) were below market
expectations. Manufacturing activities also declined MoM in September.
We believe this weakness will prompt the Fed to delay rate hikes, even though
rising inflation is becoming a major concern for both investors and consumers
(see chart below). The unexpected surge in oil prices has exacerbated these concerns.
The IMF has warned global central banks to be prepared to combat inflation. We
believe the Fed is likely to start tapering later this year, and start raising rates in H1-
2022. As we expect inflation to remain high through the end of this year, we are
maintaining our positive outlook on gold prices. That said, demand for gold will be
partially offset by the recent run up in crypto prices. Sources indicate that institutions are
starting to move some of their gold holdings to cryptos.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 6
Similar to equity markets, base metals gained strength after reporting losses in the
prior week. Inventory levels were up on the LME, but down on the SHFE (Shanghai) last
week.
Source: FRC / Various
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 7
Valuations of gold producers were up 9% WoW; base metals producers were up
5%.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 8
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 9
Last week, three (previously one) out of the 15 hardest hit nations experienced higher
daily new COVID-19 cases. Only one country (unchanged) experienced a WoW
increase in deaths. Globally, 47.59% have received at least one dose, up 1.9 ppt
WoW vs 1.2 ppt the same time last week. 77.14% of Canadians have received at
least one dose (up 0.07 ppt vs 0.7 ppt). 72.06% of Canadians are fully vaccinated (0.8
ppt vs 0.9 ppt) vs 66.25% in the U.K. (0.3 ppt / unchanged), and 55.67% in the U.S. (0.5
ppt vs 0.6 ppt).
Source: Our World in Data / FRC
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 10
We are maintaining our price forecasts.
In the following section, we review companies that announced key developments in the
past week.
Mining / Exploration
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Panoro Minerals TSXV: PML $0.15 $0.77
Ltd.
PR Title FRC Opinion
Announces the sale of Antilla copper Positive – The final sale price will be 13%
project for cash and royalty of the NPV8% of an upcoming PFS/FS on
Antilla. PML will retain a 10% interest.
Based on the various scenarios outlined in
the press release, we believe the final sale
price will be $74M, which is very close to
our valuation. In our initiating report in
October 2020, we had valued a 90%
interest in Antilla at $81M. As proceeds from
this sale can be used to advance PML’s
flagship Cotabambas project, we believe
this deal allows PML to advance
Cotabambas with minimal share dilution.
PML’s MCAP is $40M. As we are
expecting $74M from the sale of Antilla,
we believe the market is assigning zero
value to Cotabambas and any of its other
assets. We will be publishing an update
shortly.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 11
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Golden Minerals NYSE: AUMN US$0.46 US $1.03
Corp.
PR Title FRC Opinion
Reports quarterly gold production Positive – Q3 production was up 38% QoQ
increase of 38% in Q3 to 4.8 Koz, and 16% higher than our
estimate. Production growth came from
higher throughput and grades. As stated in
our last update, we are expecting record Q3
financials.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Aurcana Silver TSXV: AUN $0.66 $1.14
Corporation
PR Title FRC Opinion
Update on mill commissioning and mine Positive – Pleased to see that mill
ore sampling construction is complete, and that shipment
of concentrates will commence imminently.
Management’s guidance is 1.3–1.6 Moz in
production this year, with US$10-US$12/oz
in OPEX.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Tartisan Nickel CSE: TN $0.41 $0.57
Corp.
PR Title FRC Opinion
Intersects 25.6 metres of 1.03% Ni, Positive - A 10,000 metre diamond drilling
0.41% Cu, including 2.7 metres of 2.76% program is ongoing to test mineralization at
Ni, 0.88% Cu at the Kenbridge Nickel- depth and along strike. The first three holes
copper-Cobalt Project, NW Ontario. returned high-grades over long intercepts.
Kenbridge is 80 km north of New Gold’s
(TSX: NGD) Rainy River gold mine. We
believe the project has room for resource
expansion, especially higher-grade
mineralization at depth.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 12
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Tudor Gold TSXV: TUD $2.37 $5.29
Corp.
PR Title FRC Opinion
Announces $7 million brokered private Positive – TUD is pursuing an aggressive
placement of common shares and flow- resource expansion drill program. Targeting
through shares an updated resource estimate in early 2022.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Cora Gold AIM: CORA £0.13 £0.18
Limited
PR Title FRC Opinion
73m @ 2.24 g/t Au at Zone B, and 34m Positive – Multiple long intercepts of high-
@ 3.06 g/t Au at Zone A, Sanankoro Gold grade gold values. An updated JORC
project compliant resource estimate and DFS are
expected in the coming months.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Azure Minerals ASX: AZS A$0.32 A$0.45
Limited
PR Title FRC Opinion
More drill hits Positive – Results continue to indicate
potential for a relatively high-grade nickel
deposit. We were particularly pleased with:
7.6m @ 2.38% Ni (within 33.6m @ 1.3%),
and 7.1m @ 2.22%. Management expects
to complete a resource next year.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 13
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Grid Metals TSXV: GRDM $0.11 $0.54
Corp.
PR Title FRC Opinion
Options newly discovered lithium Positive – The property, located
pegmatite property in NW Ontario approximately 250 km northwest of Thunder
Bay, has returned high-grade lithium values
from preliminary exploration. The property
has never been explored for lithium, and is
in very early stages. Initial geological
mapping and sampling will provide insights
on its potential.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
K9 Gold Corp. TSXV: KNC $0.24 $0.65
PR Title FRC Opinion
Provides update on Stony Lake (NL) drill Positive – Drilling has intersected a broad
program; Discovers new mineralized zone of low-grade gold mineralization.
zone at Jumper's Pond Results of three holes have been
announced; one reported 1.03 g/t Au over
7.9 m. Too early for us to assign a
preliminary speculative resource estimate.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Kootenay Silver TSXV: KTN $0.21 $0.60
Inc.
PR Title FRC Opinion
Reports best Columba intercept to date Positive - 2,035 gpt silver over 6 m, within
805 gpt silver over 17 m, and 333 gpt silver
over 44 m, and 9,840 gpt silver over 0.92 m
are bonanza grades. To put things in
perspective, silver grades of over 100 gpt
are considered high. KTN is preparing for
phase 4 drilling. We are not in a position to
assign a preliminary resource estimate yet.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 14
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Quaterra TSXV: QTA $0.085 $0.42
Resources Inc.
PR Title FRC Opinion
Positive assay results at MacArthur Positive – Recently completed a 10-
copper project, Nevada and potential for hole/1,569 m drill program. Results of the
resource expansion first three holes were encouraging, including
31.1 m @ 0.58% Cu, including 22.6 m @
0.70% Cu, and 23.5 m @ 0.44% Cu. These
values are significantly higher than the
existing resource’s average grade of 0.21%.
An updated resource is expected to be
completed before the end of 2021, followed
by a PFS in late 2022.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Renforth CSE: RFR $0.07 $0.12
Resources Inc.
PR Title FRC Opinion
Drills 21.85m of 3.06 g/t gold at the Positive – These high-grade values came
Parbec open pit gold deposit in Malartic, from a previously undrilled area. We expect
Quebec management to move to an updated
resource estimate.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Steppe Gold TSX: STGO $1.33 $4.50
Limited
PR Title FRC Opinion
Inventory build up continues and near- Positive – Pleased to see that there is
term catalysts currently over 40 Koz of gold in inventory.
The pandemic has impacted STGO’s
production this year, amid supply-chain
disruptions, shortage of chemicals/reagents,
and border restrictions. Results of a
definitive feasibility study are expected later
this month; we will publish an update shortly
after the results.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 15
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Equity Metals TSXV: EQTY $0.15 $0.29
Corporation
PR Title FRC Opinion
Reports bonanza-grade intercepts from Positive – Continues to return bonanza-
offset drilling on the Camp vein silver grade gold values. One hole intersected 1.4
target, Silver Queen project, B.C. m grading 1,097 gpt Au, 0.2% Cu, and 0.5%
Pb and 2.2% Zn. Typical gold grades of
miners are 0.5-2.0 gpt gold. EQTY is
completing a maiden resource estimate on
the Camp target.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Colibri TSXV: CBI $0.10 $0.29
Resources
Corporation
PR Title FRC Opinion
Receives drilling permit for 56 holes at Positive – This is a fully funded drill
the Evelyn project in Sonora, Mexico program, and we believe the company
might be able to complete a maiden
resource estimate upon completion.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 16
Financials, Technology, Energy, and Special Situations
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
BIGG Digital CSE: BIGG $1.28 $3.25
Assets Inc.
PR Title FRC Opinion
Netcoins becomes the first publicly Positive – This is a major milestone for
owned crypto trading platform in Canada BIGG as we believe investors are likely to
to be registered to trade crypto contracts prefer a registered exchange/platform for
trading. We are expecting a significant
increase in customers/trading volume in Q4.
In a recent study, we found that trading
volume is directly correlated to Bitcoin
prices (R-squared of 0.6). As crypto prices
rebounded in August/September, we
believe BIGG’s revenue increased
significantly in the second half of Q3.
Although the recent milestone calls for an
upward revision in revenue, we will revise
our forecasts after seeing the company’s Q3
financials.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Oculus TSXV: OVT $0.54 $1.23
VisionTech Inc.
PR Title FRC Opinion
Announces New Forget-Me-Yes® (FMY) Positive – This is a major breakthrough, as
Shopify Connector it allows Oculus to tap into Shopify’s (NYSE:
SHOP) 1M+ customer-base. Oculus is also
partnering with AWS/NASDAQ: AMZN, and
Salesforce/NYSE: CRM to market its
solutions. Management expects to begin
generating meaningful revenue by year-end.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 17
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Lexaria NASDAQ: US$6.58 US$10.51
Bioscience Corp. LEXX
PR Title FRC Opinion
Oral nicotine study delivers outstanding Positive – DehydraTECH™-enabled oral
results nicotine pouch was absorbed in just 2-4
minutes vs 45 minutes for generic pouches.
LEXX’s technology has potential to deliver
nicotine into the bloodstream 10-20x faster
than generic products. LEXX is preparing
for a human clinical study.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Hello Pal CSE: HP $0.58 $1.81
International Ltd.
PR Title FRC Opinion
Announces $2.7M in monthly revenue for Positive – Revenue fell 11% MoM, but was
September 2021 inline with the last six-month average
revenue. We were pleased to see that non-
China revenue increased 30% MoM, as it
shows that the company is diversifying its
customer-base/revenue-stream.
Cannabis
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Pure Extracts CSE: PULL $0.25 $0.90
Technologies
Corp.
PR Titles FRC Opinion
Commencing build-out of extraction Positive – Management is planning to grow
facility in Michigan revenue to $20M/year by the end of 2022.
Our 2023 revenue forecast (which is more
conservative) is $15M, increasing to $22M
by 2024.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 18
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Ayurcann CSE: AYUR $0.20 $0.71
Holdings Corp.
PR Title FRC Opinion
Rolls out medical cannabis strategy and Positive – AYUR has partnered with
reveals its first partnership ReLeave Therapeutics, a company that
works with medical cannabis patients, on a
patient-referral agreement. We believe such
partnerships will allow AYUR to quickly get
exposure to a large user-base.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Chalice Brands CSE: CHAL $0.80 $2.04
PR Title FRC Opinion
Pre-announces third quarter 2021 results Positive – Pleased to see record revenue in
with record revenue of $8.0M Q3, and inline with our expectations.
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
THC BioMed Intl CSE: THC $0.09 $0.26
Ltd.
PR Title FRC Opinion
B.C. cannabis store features THC kiss Positive – Excellent exposure for THC’s
biscuits for 2021 Thanksgiving weekend products; We note that THC’s products were
featured on the front page of the B.C.
cannabis store website for the entirety of the
long weekend.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 19
Update on Coverage
Company Ticker Current Share FRC Fair Value
Name: Symbol Price: Estimate:
Fiore Cannabis CSE: FIOR $0.08 n/a
Ltd.
FRC Update
We are temporarily suspending coverage on Fiore, as we would like to see the upcoming
Q3-2021 financials prior to revising our projections. We are expecting a strong Q3 amid
the relaunch of Fiore's extraction lab operation at its Apex facility. Full operations at
the Apex facility are expected to commence this quarter. We will resume coverage once
the company publishes Q3 results (expected in late November 2021).
Weekly Cannabis Commentary
Cannabis Industry Performance
October 12, 2021
U.S. Companies YTD 1-Week 1-Year
Curaleaf Holdings Inc. -17% -1% 29%
Trulieve Cannabis Corp. -32% -5% 21%
Green Thumb Industries Inc. -8% -5% 59%
Cresco Labs Inc. -27% -2% 13%
Canadian Companies YTD 1-Week 1-Year
Aurora Cannabis Inc. -31% -4% 64%
Canopy Growth Corp. -57% -2% -30%
Cronos Group Inc. -41% -4% -6%
Tilray Inc. -35% -7% -35%
HEXO Corp. -64% -3% -45%
Organigram Holdings Inc. 30% -1% 70%
Canadian Average -33% -3% 3%
U.S. Average -21% -3% 31%
Indices
Canadian YTD 1-Week 1-Year
HMMJ -21% -1% 20%
MCAN -9% -1% 16%
XCAN -23% -2% 0%
U.S. YTD 1-Week 1-Year
MSOS -28% -3% 18%
Source: FRC
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 20
Last week, both U.S. and Canadian cannabis stocks were down 3%. Key
developments included:
➢ Ohio lawmakers introduced a bill to legalize recreational marijuana.
➢ U.S. Senator Elizabeth Warren sent a letter to the U.S. Attorney General pushing
to remove cannabis as a federally controlled substance.
➢ Illinois’ recreational cannabis sales totaled $997M in 2021 (9M), up 49% from
2020 (full-year) sales.
Valuation
As of October 12, 2021, the Canadian big four LPs were trading at a 37% premium
(down from 40% in the previous week) over their U.S. peers.
October 4, 2021 October 12, 2021
Canadian Companies Ticker TEV/Revenue TEV/EBITDA TEV/Revenue TEV/EBITDA
Aurora Cannabis Inc. TSX: ACB 7.1 NM 7.2 NM
Canopy Growth Corp. TSX: WEED 11.2 NM 10.9 NM
Cronos Group Inc. TSX: CRON 17.8 NM 16.7 NM
Tilray Inc. NASDAQ: TLRY 10.9 NM 9.3 NM
HEXO Corp. NYSE: HEXO 5.6 NM 5.3 NM
Organigram Holdings Inc. TSX: OGI 9 NM 8.7 NM
AVERAGE 10.3 NM 9.7 NM
MEDIAN 11.2 NM 10.9 NM
MINIMUM 5.0 NM 5.0 NM
MAXIMUM 17.8 NM 16.7 NM
U.S. Companies Ticker TEV/Revenue TEV/EBITDA TEV/Revenue TEV/EBITDA
Curaleaf Holdings Inc. OTC: CURLF 8.9 33.1 8.4 31.3
Trulieve Cannabis Corp. OTC TCNNF 7.1 15.5 7.6 16.6
Green Thumb Industries Inc. OTC: GTBIF 8.4 22.8 7.8 21.2
Cresco Labs Inc. OTC: CRLBF 4.9 15.0 4.5 13.9
AVERAGE 7.3 21.6 7.1 20.8
MEDIAN 7.8 19.2 7.7 18.9
MINIMUM 4.9 15.0 4.5 13.9
MAXIMUM 8.9 33.1 8.4 31.3
Implied Premium (Canada vs U.S.) (Average) 40% 37%
Source: S&P Capital IQ, FRC
The following chart shows the average EV/R of the companies we track in both
countries:
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 21
Average EV/R
Source: S&P Capital IQ, FRC
Canadian Retail Cannabis Pricing
Province (As of 2021/10/12) Average Price per Gram Average Price per Gram THC Average Price per Gram CBD # of Products Min. Price Max. Price
B.C. $ 9.39 $ 9.45 $ 8.45 239 $ 3.89 $ 15.71
Ontario $ 9.16 $ 9.29 $ 7.87 392 $ 3.57 $ 19.99
Quebec $ 9.10 $ 9.10 $ 9.05 281 $ 3.60 $ 21.68
Alberta $ 10.46 $ 10.45 $ 10.61 439 $ 3.14 $ 22.00
N.B. $ 9.26 $ 9.35 $ 8.07 231 $ 3.57 $ 15.99
P.E.I. $ 9.61 $ 9.62 $ 9.34 197 $ 4.40 $ 23.30
Newfoundland $ 9.88 $ 9.84 $ 10.17 199 $ 4.08 $ 25.84
Yukon $ 16.33 $ 14.49 $ 12.68 9 $ 12.68 $ 16.41
N.S. $ 9.91 $ 9.94 $ 9.50 203 $ 4.64 $ 42.85
Nunavut $ 13.15 $ 13.35 $ 18.41 32 $ 9.43 $ 17.91
Northwest Territories $ 14.53 $ 12.64 4 $ 12.08 $ 17.28
Manitoba $ 11.31 $ 11.21 $ 11.46 372 $ 3.93 $ 23.57
Saskatchewan $ 11.78 $ 11.64 $ 12.07 275 $ 4.40 $ 38.50
CANADA $ 11.07 $ 10.80
Province (As of 2021/10/4) Average Price per Gram Average Price per Gram THC Average Price per Gram CBD # of Products Min. Price Max. Price Max. Price
B.C. $ 9.43 $ 9.49 $ 8.45 240 $ 3.89 $ 15.71 $ 15.71
Ontario $ 9.21 $ 9.34 $ 7.87 391 $ 3.57 $ 19.99 $ 22.66
Quebec $ 9.12 $ 9.12 $ 9.05 279 $ 3.60 $ 21.68 $ 21.68
Alberta $ 10.52 $ 10.50 $ 10.61 437 $ 3.14 $ 22.00 $ 22.00
N.B. $ 9.30 $ 9.39 $ 8.07 229 $ 3.57 $ 15.99 $ 16.28
P.E.I. $ 9.62 $ 9.64 $ 9.34 195 $ 4.40 $ 23.30 $ 23.30
Newfoundland $ 9.90 $ 9.84 $ 10.24 190 $ 4.08 $ 15.40 $ 15.40
Yukon $ 16.33 $ 14.49 $ 12.68 9 $ 12.68 $ 16.41 $ 22.28
N.S. $ 9.92 $ 9.95 $ 9.50 206 $ 4.64 $ 42.85 $ 42.85
Nunavut $ 13.15 $ 13.35 $ 17.41 32 $ 9.43 $ 17.91 $ 17.91
Northwest Territories $ 14.53 $ 12.64 4 $ 12.08 $ 17.28 $ 17.28
Manitoba $ 11.31 $ 11.23 $ 11.46 372 $ 4.87 $ 23.57 $ 23.57
Saskatchewan $ 11.78 $ 11.68 $ 12.07 272 $ 4.40 $ 38.50 $ 38.50
CANADA $ 11.08 $ 10.82
Source: Online Provincial Cannabis Stores, FRC
The average retail price per gram fell week-over-week from $11.08 to $11.07. The
chart below shows the Canadian retail dried cannabis flower pricing trend:
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 22
Canadian Retail Dried Cannabis Flower Pricing
Source: Online Provincial Cannabis Stores, FRC
Canadian Retail Cannabis Stores
As of October 12, 2021, there are 2,643 retail cannabis stores, a week-over-week
increase of 44 stores across Canada, including 19 in Ontario, two in Alberta, five in B.C.,
10 in Manitoba, and eight in Saskatchewan.
Nationwide Store Count
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 23
Sept-7-2021 Sept-13-2021 Sept-20-2021 Sept-27-2021 Oct-4-2021 Oct-11-2021
Geographic Region Store Count Store Count Store Count Store Count Store Count Store Count Population Population / Store
Alberta 677 677 684 688 689 691 4,428,247 6,408
B.C. 373 373 374 373 369 374 5,120,184 13,690
Manitoba 107 108 108 108 108 118 1,379,121 11,687
N.B. 20 20 20 20 20 20 780,890 39,045
N.S. 25 25 25 25 25 25 978,274 39,131
Newfoundland 30 30 30 30 30 30 520,437 17,348
Northwest Territories 6 6 6 6 6 6 44,982 7,497
Nunavut 39,486
Ontario 1,077 1,087 1,112 1,130 1,154 1,173 14,745,040 12,570
P.E.I. 4 4 4 4 4 4 158,717 39,679
Quebec 77 77 77 77 77 77 8,552,362 111,070
Saskatchewan 112 112 112 112 112 120 1,181,987 9,850
Yukon 5 5 5 5 5 5 41,293 8,259
CANADA 2,513 2,524 2,557 2,578 2,599 2,643 37,971,020 14,367
Source: Provincial Websites, FRC
Weekly Psychedelic Commentary
Psychedelic Industry Performance
October 12, 2021
Company YTD 1-Week 1-Year
COMPASS Pathways plc -29% 7% -17%
Atai Life Sciences N.V. -36% -5% -36%
Numinus Wellness Inc. -45% -7% 106%
Mind Medicine Inc. -26% 3% 140%
Braxia Scientific Corp. -80% -5% -80%
Cybin Inc. 29% -6% 191%
Levitee Labs Inc. -31% -9% -31%
Seelos Therapeutics Inc. 57% -1% 157%
AVERAGE -20% -3% 54%
MIN -80% -9% -80%
MAX 57% 7% 191%
Indices YTD 1-Week 1-Year
PSYK -30% 0% -30%
PSIL -11% 1% n/a
Source: TMX Money, FRC
Last week, Seattle announced that it has decriminalized the non-commercial cultivation,
possession, and personal use of a plant and fungi-derived psychedelics. In addition, a
bill allowing for research and clinical studies of psilocybin was filed by Pennsylvania
lawmakers.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTPage 24
Disclaimers and Disclosure
The opinions expressed in this report are the true opinions of the analyst(s) about any companies and industries mentioned. Any
“forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we
believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our
forecasts will materialize. Actual results will likely vary. Certain companies mentioned in pages 3, and 10-19 are covered by FRC
under an issuer paid model. FRC or companies with related management, and Analysts, may hold shares in some companies
mentioned in this report including Barrick, and QTA. Distribution procedure: our reports are distributed first to our web-based
subscribers on the date shown on this report then made available to delayed access users through various other channels for a
limited time.
To subscribe for real-time access to research, visit https://www.researchfrc.com/website/subscribe for subscription options.
This report contains "forward looking" statements. Forward-looking statements regarding the Company, industry, and/or stock’s
performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements.
Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's
products/services in the marketplace; acceptance in the marketplace of the Company's new product lines/services; competitive
factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and
other risks discussed in the Company's periodic report filings, including interim reports, annual reports, and annual information forms
filed with the various securities regulators. By making these forward-looking statements, Fundamental Research Corp. and the
analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this
report.
Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE
OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A
PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY
OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE
YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE’S RISK TOLERANCE,
OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR
UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR
SECURITY FOR INCLUSION IN YOUR PORTFOLIO. This REPORT is solely for informative purposes and is not a solicitation or an
offer to buy or sell any security. It is not intended as being a complete description of the company, industry, securities or
developments referred to in the material. Any forecasts contained in this report were independently prepared unless otherwise
stated, and HAVE NOT BEEN endorsed by the Management of the company which is the subject of this report. Additional
information is available upon request. THIS REPORT IS COPYRIGHT. YOU MAY NOT REDISTRIBUTE THIS REPORT WITHOUT
OUR PERMISSION. Please give proper credit, including citing Fundamental Research Corp and/or the analyst, when quoting
information from this report. The information contained in this report is intended to be viewed only in jurisdictions where it may be
legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local
regulations or which would require any registration requirement within such jurisdiction.
©2021 Fundamental Research Corp. “18+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”
Click here to view FRC’s complete list of top picks
PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORTYou can also read
