- Enterprise Value measures the market value of a firm's operating assets and is calculated as market capitalization plus net debt.
- Funded Capacity refers to expected future production for which funding has been secured.
Thus, looking at the Enterprise Value to Funded Capacity ratio provides us with a metric to help value cannabis companies.
The Canadian marijuana stocks we've weeded out are all significantly lower than the average ratio of $13/gram, according to the Eve & Co. investor presentation.
Aleafia Health is involved in the production and sale of cannabis products, as well as consultation services to determine the suitability of the Company's products for treating various chronic conditions.
On September 4, 2018, Aleafia received a sales license from Health Canada. Then, on October 9, 2018, the Company received Health Canada approval for an outdoor cultivation facility in Port Perry.
Based out of Moncton, New Brunswick, Organigram produces and distributes cannabis products for the Canadian medical and recreational markets.
According to the Company's latest investor presentation, Organigram's average selling price was over $7/gram, while all-in cost of production was below $1/gram. Organigram has a fully-funded expansion plan totaling 473,228 square feet. Through partnerships, the Company also has exposure to international medical markets, including Australia and Germany.
Operating through its Natural MedCo Ltd subsidiary, Eve & Co is a premium female-focused brand with a 200,000 sq. ft. facility in southwestern Ontario. The Company provides educational and online support for its customers to destigmatize cannabis use among women. The Company's brand centers around female empowerment and leadership and is Canada's first female-founded licensed producer.