Green gold rush fizzles as Okanagan cannabis companies see stock prices fade - InfoNews

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Green gold rush fizzles as Okanagan cannabis companies see stock prices fade

Julia Ratcliffe, a technical consultant with The Bug Factory, a company that supplies insects for natural pest control, examines marijuana plants for pests at the MediJean medical marijuana facility in Richmond, B.C., on March 21, 2014.
Image Credit: THE CANADIAN PRESS/Darryl Dyck
August 31, 2018 - 3:00 PM

OKANAGAN - A sector-wide 'green gold rush' at the beginning of 2018 that saw most cannabis stocks soar, including several in the Okanagan, has fizzled somewhat with most share prices falling back to previous levels.

Beginning in November 2017, and through to February 2018, cannabis stocks across the spectrum saw sudden intense investor interest send their valuations sky rocketing.

Valens Groworks VGW:CNE is headquarted in Vancouver but operates a 17,000 square foot facility on two acres in Kelowna.

It describes itself as a biotechnology company which is “commencing cannabis production and sales” under a Health Canada dealers license through a wholly owned subsidiary.

The company’s stock hit $2.55 a share on the Canadian Securities Exchange last January 8 after almost doubling in value in less than two months.

Shares of the company on, Thursday, August 30, were trading at a much more modest $1.35.

That wasn’t even the height for the company which saw a year high stock price of $3.36 and a year low of $0.46.

Vernon-based True Leaf Medicine MJ:CNE made the $3.3 million purchase of a 40-acre site in Lumby where it is constructing a 16,000 square foot hydroponic grow building and an office, warehouse and extraction facility.

The company is known for being chaired by former B.C. Premier Mike Harcourt and says it will eventually be producing 2,500 kilograms of dried cannabis each year.

Last January 8, the company’s shares were trading at $1.62 but have since fallen back to $.56 on a year high of $1.90 and year low of $.45.

THC Biomed THC:CSE is a licensed producer for Health Canada located in Kelowna. The company says it is engaged in “developing technologies, products and services to support the cannabis industry.”

By last January 8, the company’s shares had hit $2.20 after almost tripling in the two months previous. Shares Thursday were trading at $1.01 on a year high of $3.36 and year low of $.46.

A company that was not measured last January is Heritage Cannabis Holdings which is in the midst of beginning production in a 15,500 square foot facility near Falkland. The company’s shares are currently trading at $.31 with a year high of $.84 and year low of just $.11.

About the only relative success story is Doja, a company that operates a “lifestyle cafe” and production facility in Kelowna. By last January 8 the company’s shares had shot up 300 per cent to $2.88 in just two months.

The company is now listed under HIKU:CSE and was trading today at $2.65 on a year high of $4.82 and a year low of $.47.

Canada has legalized the recreational use of cannabis beginning October 17, 2018.

To contact a reporter for this story, email John McDonald or call 250-808-0143 or email the editor. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

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