We at Marijuana Stocks wanted to give an update to our Connect the Dots report we put out yesterday, but first we need to give you some very important information!
Cannabis Wheaton (KWFLF) (CBW.V) has brought on syndicate agents including Canaccord Genuity Corp & Eight Capital to raise more than $50M CAD for their Cannabis Streaming business model. This raise will set the bar for other Canadian firms as it will represent one of the single largest capital raises in the history of the cannabis industry, that is not directly focused on cultivating. With this, Cannabis Wheaton is now heavily cashed up and one would hope that means management will begin aggressively working towards securing accretive deals that create value for shareholders and expand their overall reach.
First and foremost, we can only speculate what the company’s plans are with proceeds raised with regards to specific direct investment, but we expect to see the company use this capital to sign a new streaming partnership agreement with one of Canada’s major cultivators. We will continue to monitor the situation closely and provide updates as we get them. Now, let’s discuss what happened with trading on Tuesday, May 23, 2017.
In the pre-market hours, Cannabis Wheaton announced a private placement in the amount of $50,000,000 CAD which we referenced above as a truly a monster raise. Pending that news and at the company’s request, the Canadian exchange halted trading for the announcement of the news. FINRA then also issued a code U1 halt in the U.S. (that is NOT an SEC regulatory halt). This type of halt refers to a stock that is listed on a foreign exchange and gets halted by that exchange (in this case Canada) so FINRA must then also halt trading in the duel listing in the U.S.. This means no one could buy or sell shares of Wheaton until 3:15pm EST when the Canadian exchange and FINRA lifted the temporary halt and trading resumed.
The price of the stock adjusted for the financing news and opened for trade at $1.04 on the U.S. side. This is a nice discount compared to where the stock was trading prior to the news considering the stock had recently made a huge move on Monday after trading €4.9 million on the German exchange and $7.4 million CAD with Cannabis Wheaton (OTC KWFLF) (TSX CBW.V) gaining nearly 138% in the 3 days prior to the financing news. We expect the market to begin reflecting the opportunity for Cannabis Wheaton Corp. as their business model is cutting edge and their CEO Chuck Rifici has a proven record within the cannabis industry.
Pursuant to an agreement between MAPH and Cannabis Wheaton (KWFLF) we were hired for 30 Days to publicly disseminate information about (KWFLF) including on the Website and other media including Facebook and Twitter. We are being paid $150,000 (CASH) for and were paid “0” shares of restricted common shares of Cannabis Wheaton. We may buy or sell additional shares of (KWFLF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.