Marijuana stocks continue to trade volatile and Tetra Bio Pharma (TBP.CN) (TBPMF) has been one of the top performers recently. The shares rallied 22% last week and Tetra is well positioned to move significantly higher.
We recently highlighted Tetra Bio and want to provide an update on the company after last week’s move higher.
Continues to Strengthen Management Team
One of the major focuses of Tetra this year has been on its management team and earlier this month, the company added Dr. Bill Cheliak to its Board of Directors.
Dr. Cheliak is CEO of Panag Pharma, a Canadian based bio-tech company focused on the development of novel cannabinoid based formulations for the treatment of pain and inflammation. He has over 20 years of experience as an entrepreneur and brings extensive deal making experience to the company. Dr. Cheliak currently serves as a Director for Solarvest and is Vice Chair of the Government of Canada’s Networks Centers Excellence Standing Selection Committee and Chair of the NCE Monitoring Committee.
Earlier in May, Tetra Bio further strengthened its management team after it announced that Robert Bechard was appointed to the position of Vice President, Finance and Business Development.
A Focus on Cannabis Biotech Treatments
The addition of Dr. Bill Cheliak to the Board comes one-week after Tetra Bio signed a definitive agreement with Panag Pharma for the development and commercialization of novel cannabinoid based formulations for the treatment of pain and inflammation.
Per the definitive agreement, Tetra will have exclusive access to sell the ocular and topical drug products in North America with right of first negotiation for outside U.S. and Canadian territories. In addition, Tetra has a right of first negotiation for future cannabinoid-based products.
Tetra will work in close collaboration with Panag’s team of experts to ensure a rapid and successful development leading to marketing authorization. Panag will continue work in the development of novel products for unmet medical need and Tetra will take the lead in commercializing these novel drug products.
Positioned to Execute
The signing of a definitive agreement follows the submission of a provisional patent application with the U.S. Patent and Trademark Office (USPTO) for a pharmaceutical drug formulation to treat various forms of cancer and ocular disease
Tetra is focused on developing cannabinoid based pharmaceutical treatments for indications that are multi-billion-dollar opportunities and we think these steps have significantly improved the company’s position within the biotech sector. This is a stock to watch and one we suggest putting toward the top of your radar screens.
Disclaimer: Pursuant to an agreement between MAPH and Tetra Bio-Pharma, we were hired for a period of 90 days to publicly disseminate information about (TBPMF) including on the Website and other media including Facebook and Twitter. We are being paid $75,000 (CASH) for and were paid 250,000 restricted common shares of Tetra Bio-Pharma. We may buy or sell additional shares of (TBPMF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
CANNABIS WHEATON ANNOUNCES PRIVATE PLACEMENT OF SPECIAL WARRANTS AND CONVERTIBLE DEBENTURE UNITS
Cannabis Wheaton Income Corp. (KWFLF) (CBW.V) has engaged a syndicate of agents co-led by Eight Capital and Canaccord Genuity Corp. to sell, on a best efforts, private placement basis, special warrants and convertible debenture units (as described below) of the company, for gross proceeds of up to $50-million.
The Company has agreed to grant the Agents an over-allotment option to offer up to that number of additional Special Warrants and/or Convertible Debenture Units as is equal to 15% of the number sold in the Offering, on the same terms and conditions as the Offering, increasing the size of the Offering to a maximum of $57,500,000 in aggregate gross proceeds. The over-allotment option may be exercised in whole or in part on or before 48 hours prior to the closing of the Offering, which is expected to occur on or about June 21, 2017 (the “Closing Date”).
The net proceeds from the Offering will primarily be used for general corporate purposes, including but not limited to, the financing of the Company’s streaming partners pursuant to certain of the Company’s streaming agreements, and for general and administrative expenses.
The Offering will consist of “Special Warrants” and “Convertible Debenture Units” as follows.
Special Warrants
Each Special Warrant will be offered at a price of $1.15 per Special Warrant for gross proceeds of up to $25,000,000 (the “Special Warrant Offering”). Each Special Warrant will be automatically exercised (without any further action by the holder or payment of any further consideration and subject to customary anti-dilution adjustments) into one Unit (as defined below) of the Company on the date (the “Automatic Exercise Date”) that is the earlier of: (i) the date that is three business days following the date on which the Company obtains a receipt from the applicable Canadian securities regulatory authorities (the “Securities Commissions”) for a (final) short form prospectus qualifying the distribution of the Units issuable upon exercise of the Special Warrants (the “Qualifying Prospectus”), and (ii) the date that is four months and one day after the Closing Date. Each Unit will consist of one common share (each a “Common Share”) and one common share purchase warrant of the Company (a “Warrant”). Each Warrant will (subject to acceleration and customary anti-dilution adjustments) entitle the holder thereof to purchase one Common Share, at any time on or prior to the date that is 24 months following the Closing Date, at an exercise price of $1.60 per share. The Company will use its commercially reasonable efforts to obtain a receipt from the Securities Commissions for the Qualifying Prospectus before the date that is four months and one day following the Closing Date; provided, however, that there is no assurance that a Qualifying Prospectus will be filed or that a receipt therefor will be issued by the Securities Commissions prior to the expiry of the statutory four month hold period.
Convertible Debenture Units
Each Convertible Debenture Unit will be offered at a price of $1,000 per Convertible Debenture Unit for gross proceeds of up to $25,000,000. Each Convertible Debenture Unit will consist of $1,000 principal amount of 6% senior unsecured convertible debentures (the “Convertible Debentures”) and 435 Common Share purchase warrants (the “CD Warrants”) of the Company. Each CD Warrant (subject to acceleration and customary anti-dilution adjustments) will be exercisable to acquire one Common Share at an exercise price of $1.60 per share for a period of 24 months following the Closing Date. Subject to the Company filing a Qualifying Prospectus (as described above), the Convertible Debentures, the CD Warrants and the Common Shares will be subject to the statutory four month hold period.
The Convertible Debentures will bear interest from the Closing Date at 6.0% per annum, calculated semi-annually in arrears on June 30 and December 31 of each year. The first interest payment will be made on June 30, 2018 and will consist of interest accrued from and including the Closing Date to June 30, 2018. The Convertible Debentures will mature on the date that is 24 months from the Closing Date (the “Maturity Date”).
The Convertible Debentures will be convertible into Common Shares at the option of the holder at any time prior to the close of business on the last business day immediately preceding the Maturity Date at a conversion price of $1.15 per Common Share (the “Conversion Price”), subject to adjustment in certain events. Holders converting their Convertible Debentures will receive accrued and unpaid interest thereon for the period from and including the date of the latest interest payment date to, but excluding, the date of conversion.
Beginning on the date that is four months and one day following the Closing Date, the Company may force the conversion of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on not less than 30 days’ notice should the daily volume weighted average trading price of the Company’s Common Shares be greater than $2.30 for any 10 consecutive trading days on the TSX Venture Exchange (the “TSX-V”), or such other exchange as the Common Shares may then be trading (the “Trigger Event”). In addition, upon the occurrence of the Trigger Event, the Company may also accelerate the expiry date of the Warrants and CD Warrants on not less than 30 days’ notice.
Subject to a number of customary closing conditions (including the Company completing the Special Warrant Offering), the Company is pleased to announce that MMCAP International Inc. SPC (the “Lead Subscriber”) intends to subscribe for up to $20,000,000 aggregate principal amount of the Convertible Debenture Units.
Closing Conditions and Related Matters
The Offering is subject to a number of customary closing conditions, including TSX-V approval, negotiation of definitive closing documents, due diligence and the absence of a material adverse change.
As part of the Offering, directors, officers, and certain other shareholders, together representing approximately 55% of the issued and outstanding Common Shares on a fully diluted basis (prior to giving effect to the Offering), have agreed to enter into lock-up agreements in favour of the Agents restricting their ability to transfer their Common Shares and other securities of the Company convertible into Common Shares (collectively, the “Lock-Up Securities”) until the date that is 12 months following the Closing Date, provided that: (i) one-third of the Lock-Up Securities shall cease to be subject to the lock-up on the date that is 6 months and one day following the Closing Date; and (ii) a further one-third of the Lock-Up Securities shall cease to be subject to the lock-up on the date that is 9 months and one day following the Closing Date.
Representatives of the Co-Lead Agents hold an aggregate of 13,139,859 common shares and 13,139,859 common share purchase warrants of the Company, representing approximately 8.0% of the issued and outstanding common shares on a basic basis (8.5% of the outstanding common shares on a fully-diluted basis) as at the date hereof.
The Company also announces that it has filed an amended and restated annual information form containing additional disclosure relating to its updated investment strategy in the cannabis industry.
The Canadian stock market was closed for Victoria Day yesterday and today, three marijuana stocks reported several significant developments. We have highlighted these developments below to help you focus on important trends sweeping the industry.
New Cannabis IPO to Raise $50+ Million
One of newest and most differentiated Canadian cannabis producers, Cannabis Wheaton (CBW.V: TSX Venture) (KWFLF) announced a $50 million private placement and engaged a syndicate of agents co-led by Eight Capital and Canaccord Genuity.
The firm is selling special warrants and convertible debenture units and will use the net proceeds for general corporate purposes, for the financing of its streaming partners pursuant its streaming agreements, and for general and administrative expenses.
Cannabis Wheaton is off to a great start after the company reported that MMCAP International Inc. SPC intends to subscribe for up to $20,000,000 of the offering. The offering is expected to occur on June 21st and the company granted the underwriters an over-allotment option which increases the offering to $57.5 million.
Cronos’ Breaks Ground on a Brand New 315,000 sq. ft. Facility
Today, Cronos Group’s (MJN.V: TSX Venture) (PRMCF) wholly-owned licensed producer, the Peace Naturals Project broke ground on a 315,000 sq. ft. expansion that includes a 286,000 sq. ft. production facility, a 28,000 sq. ft. greenhouse, and an additional 1,200 sq. ft. extraction lab.
Upon completion, the facility is expected to be the largest purpose-built indoor cannabis production facility in the world. The facility is expected to complete by November and fully operational by summer 2018. This expansion will bring Peace’s total estimated production capacity to 40,000 kg a year.
The facility is designed to GMP certification standards and will include:
An area for proprietary genetic breeding
Pharma lab for cannabinoid and terpene extraction, identification, and formulation
R&D space for analyzing metabolite enhancement and new lighting technologies
Tissue culture laboratory
Industrial-grade kitchen
Processing infrastructure that supports production from other facilities
Cronos is breaking ground on the greenhouse today and the facility will be used to collect data and implement advanced cultivation techniques that can be replicated at its other production facilities. The company’s extraction lab will augment capabilities in both purification and recombination of cannabinoid compounds to create innovative formulated products. The greenhouse and lab are expected by the end of the summer.
Aurora to Supply Resources to Support a Groundbreaking Legal Case
Today, the Canadians for Fair Access to Medical Marijuana (CFAMM) reported an investment by Aurora Cannabis (ACB.V) (ACBFF) that is of a different nature than its prior investments.
CFAMM announced that Aurora has committed financial and other resources to support Gordon Skinner’s defense in what might be a potentially precedent-setting medical cannabis insurance coverage case. CFAMM has been providing strategic support to Skinner and Aurora’s resources will ensure that Skinner can defend his case.
On January 30th, the Nova Scotia Human Rights Commission ruled that the Board of Trustees of the Canadian Elevator Industry Welfare Trust Fund committed discrimination by denying coverage for the medical cannabis Skinner uses to manage chronic pain and other conditions resulting from a work-related injury that left him permanently impaired. Following the decision, the Board of Trustees filed an appeal against Skinner and the Commission in the Nova Scotia Court of Appeal. The appeal has been set for October 2, 2017.
Founded in 2014, Canadians for Fair Access to Medical Marijuana (CFAMM) is a federal non-profit, patient-run organization dedicated to protecting and improving the rights of medical cannabis patients. CFAMM’s goal is to enable patients to obtain fair and safe access to medical cannabis with a special focus on affordability, including private and public insurance coverage.
We want to commend Aurora on its commitment to improving the cannabis industry and supporting patients in need. This decision may have a lasting impact on the sector and could change the landscape of the Canadian medical cannabis industry.
Disclaimer: 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.
When We Connect the Dots, You Profit Connect the Dots Articles Have Returned 9,932% for Our Readers
Over the last couple years, as the marijuana industry has taken flight, it has been our mission to help our readers make money from cannabis. Every once in a while we publish a “Connect the Dots” article highlighting a company or group of companies that we believe have tremendous near-term upside potential. By identifying these companies and providing insight and research otherwise unavailable to the mainstream investor, we have been able to help our readers gain as much as 9,932% in about two and a half years. That is the combined gain percentage that all of our Connect the Dots companies experienced in the weeks and months after we published an article. Let’s take a look at some of our biggest gainers:
*CannaGrow Holdings (CGRW); previously BizAuctions (BZCN) click here for article
Connect the Dots published on 10/8/14 at $0.053
CGRW hit $3.45 on 10/18/16 6,409% gain
*Rocky Mountain High (RMHB); previously Totally Hemp Crazy (THCZ) click here for article
Connect the Dots published on 12/18/14 at $0.0115
THCZ hit $0.32 on 4/1/15 2,683% gain
*Future Farm Technologies (FFRMF); previously Arcturus Growthstar Technologies (AGSTF) click here for article
Connect the Dots published on 10/4/16 at $0.137
FFRMF hit $0.541 on 2/22/17 295% gain
*Vitality Biopharma (VBIO)click here for article
Connect the Dots published on 12/6/16 at $1.01
VBIO hit $4.24 on 12/27/16 320% gain
These are just a few of our previous Connect the Dots highlights. And as you can see, the track record speaks for itself. It is our goal to literally connect the dots for our readers to help identify opportunity in this budding industry. And thus far we have done more than just identify opportunity; we have helped some earn a small fortune.
Now we know it’s impossible to have captured all of the 9,932% gains. So let’s say you were able to capture just half. A $5,000 investment would be worth $248,300. Again, that’s if you only captured half of the total gains.
The marijuana industry is at a very interesting stage of its development right now. Even with nearly 10,000% gains in the books, we still feel that we’ve only seen the tip of the iceberg. And it’s one mighty iceberg. We hope that you are happy with the content we provide and continue to read our articles on a daily basis. Because you never know when the next cannabis opportunity will bud.
Pursuant to an agreement between MAPH and Future Farm Inc., we were hired for a period of 30 days to publicly disseminate information about (FFRMF) including on the Website and other media including Facebook and Twitter. We are being paid $37,500 (CASH) for and were paid 1 million shares of restricted common shares. We may buy or sell additional shares of (FFRMF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.Pursuant to an agreement between MAPH and a non affiliate third party, we were previously hired for a period of 30 days to publicly disseminate information about (VBIO) including on the Website and other media including Facebook and Twitter. We were paid $100,000 (CASH) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero shares of (VBIO) which we purchased in the open market. We may buy or sell additional shares of (VBIO) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
Wow, another record volume day for Vinergy Resources (VNNYF). This action has definitely got our attention. We re-initiated coverage of this company on May 1, 2017, at $0.33 and in just three days we have already seen a record setting volume day TWICE and a steady 27% climb.
Today, May 3rd, VNNYF made a new 3-day high of $0.42 on record volume. We are getting a lot of messages from subscribers asking about what the acquisition of MJ Biopharma could mean for Vinergy and its shareholders. To get up to speed, read this article to see what investors should know about the pending acquisition of MJ Biopharma:
As most of you already know, trading of Vinergy on the Canadian stock exchange under symbol VIN.CN has been halted pending a fundamental change in the company. It is our opinion and assumption that this ‘fundamental change’ could be the completion of the MJ Biopharma acquisition that the company mentioned months ago. We cannot be certain of this, but there is a lot of buzz circulating right now about this potential acquisition and the recent trading activity on the U.S. side in VNNYF. If you haven’t done so already, familiarize yourself with Vinergy Resources (VNNYF) and MJ Biopharma. Because if this acquisition is completed, the most informed investors will be in the best position.
Disclaimer: Pursuant to an agreement between MAPH and a non-affiliate third party, we were hired for a period of 1 month from 5/1/2017 – 6/1/2017 to publicly disseminate information about (VNNYF) including on the Website and other media including Facebook and Twitter. We are being paid $150,000 (CASH) for or “ZERO” shares of restricted or unrestricted common shares. We own zero shares of (VNNYF) which we purchased in the open market.We may buy or sell additional shares of (VNNYF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
Today is the final trading day of the year will definitely be one that investors will always remember. The market remains in the positive as companies are better positioned for success. From the advance of the Canadian marijuana industry to election of Donald Trump, there will be a lot for investors to watch next year. We would like to highlight some themes anticipated to play out over 2017.
Consolidation
One of the brightest spots of the marijuana industry in 2016 was the Canadian licensed medical marijuana producer sub-sector. In early December, Mettrum Health (MT.V)(MQTRF) and Canopy Growth (CGC.TO)(TWMJF) announced an agreement where Canopy Growth will gain all of the outstanding shares of Mettrum.
Keep your eyes on the marijuana industry as it is expected to see more deals like this over the next year. The possibility for increase consolidation makes these companies attractive investment opportunities: Aphiria (APH.V)(APHQF), Supreme (SL.V)(SPRWF), OrganiGram (OGI.V)(ORGMF), Emblem Corporation (EMC.V), and Aurora Cannabis (ACB.V)(ACBFF).
Transformation
The biotech sector will be one of the greatest recipients of the legal marijuana movement and recent sector weakness has created opportunities for investors.
GW Pharmaceuticals (GWPH) reported its second Stage Three Clinical trial in September for its Epidiolex product for the treatment of seizures associated with Lennox-Gastaut syndrome (LGS). We continue to view GWPH as one of the top marijuana investments due to its capability to convert the cannabis industry through the development of treatments for sickness’ that don’t currently have an approved regimen.
Execution
From the financial structure, investors need to conduct with earnestness. We suggest incorporating some guidelines into your investment blueprint.
To end 2016, we want to highlight some of the stocks investors should watch during next year: Emblem Corporation (EMC.V)(EMMBF), Zoned Properties (ZDPY), Aphria (APHQF), Kush Bottles (KSHB), American Cannabis (AMMJ), Aurora (ACBFF), Reliq Healthcare (RQHTF), Zynerba Pharmaceuticals (ZYNE), OrganiGram (OG.V)(ORGMF), Arcturus Grothstar Tech (AGSTF), MassRoots (MSRT), VPR Brands (VPRB), CV Sciences (CVSI), mCig (MCIG), Canopy Growth (TWMJF)(CGC.TO), Medicine Man Tech (MDCL), GW Pharmaceuticals (GWPH), Lexaria (LXRP), Canabo Medical (CMM.V)(CAMDF), Mettrum Health (MT.V), and VinergyRes (VIN.CN).
One of the biggest questions we get on MarijuanaStocks.com is “How do I buy Marijuana Stocks?” First, we aren’t financial advisors, but we can offer you a good starting point and some relevant information. We get thousands of emails from our subscribers and created this based off of your inquiries. MarijuanaStocks.com hopes this is a helpful guide to potential investors interested in the Cannabis sector, but we encourage you to continue your research and hopefully you’ll become the next Pot Stock millionaire! Cheers
Over recent weeks we’ve been shedding more light on the hemp industry and why we see it as an important part of the bigger cannabis space. Marijuana Stocks, the Wolf of Weed Street and Cheryl Shuman have been working closely with FBEC Worldwide to help develop the first branded hemp infused energy drink for FBEC called the “Wolf Shot Hemp Energy.” The product launch is slated for August 1 and buzz has grown quickly. Friday FBEC Worldwide was highlighted in an article on TheStreet.com, which focused specifically on the Hemp industry, what it is, why it’s important, and why investors should be paying much more attention to it now more than ever:
“Hemp Won’t Get You High, But Could Boost Your Portfolio Sooner Than You Think”
The article discusses the differences between hemp and marijuana citing that though they both are derived from the same type of cannabis plant, their uses couldn’t be more different. Major health benefits from hemp include higher levels of easily digestible protein, longer sustained levels of energy, improved mental focus and even reduction in cardiovascular disease. The biggest benefit is that though it is limited to growing in the US, using and selling products that have it is not. Highlighting FBEC Worldwide as a viable option for taking advantage of the growth that this space could see in both short and long terms adds much more legitimacy to the company and shows the true differences between companies planning to do something and companies actually doing it like FBEC Worldwide is; now 3 weeks away from initial product launch.
There have been hundreds of marijuana stocks covered in the market, which have captivated the interest of investors. CannaGrow Holdings, Inc. (CGRW) in particular has seen a fair share of attention throughout 2014-2015. It stands to reason that this company has managed to gain momentum after announcing significant developments month over month over the last 3 quarters and has helped to strengthen CannaGrow in becoming a new leader within the industry. But why?
Initiation and approval of the Colorado Buffalo Ranch project have been the major focal points for the company and over the course of the last 7 months, CannaGrow has acted as a consultant and liaison to NuGro Industries in order to build a leading position in the green house market for Colorado’s marijuana industry.
The Future For Marijuana Cultivation: Green House Growing
Conservatives certainly couldn’t have imagines a world where marijuana would be nearing universal legalization and though only 4 states have legalized recreational marijuana, half of the US and the District of Columbia have laws in place that allow medical marijuana to shine. States like New York and Illinois have singled out the drug to be used only by “smokeless” methods and the marijuana industry as a whole – outside of the medical space – has found that nearly have of the industry’s sales are coming by way of edibles.
No longer is it a matter of “beautiful buds”. Now the real industry is building around extracts. Over $118million worth of marijuana have already been sold in Colorado during the first quarter of 2015 and the market continues to grow month over month according to sales data. Green house growing is preferred when it comes to extracting the most resin from the cannabis plant and the trend to grow weed in greenhouses has come at a time that warehouse space is becoming more expensive and difficult to find. Since voters approved legalizing marijuana for recreational use in 2012, growers have absorbed more than 1 million square feet of industrial space, according to the industrial Market Trends report by Newmark Grubb Knight Frank. The total space occupied by the industry is more than 4 million square feet.
Therefore, those who have already begun the arduous process of land use approval and conditional use permission will already have a leg up during somewhat of a paradigm shift from bud to extracts. As a liaison and consultant in this niche, CannaGrow can quickly gain market share necessary to carve out a leading position within the space.
Buffalo Ranch
Since initiating the submission process for approval of land use in Huerfano County, CannaGrow, acting as a facilitator and liaison, has been able to have approval granted for the project while also continuing its development of the new site. Keep in mind that Colorado may be known for a cooler climate, the state has 300 days of sunshine making it an ideal location for a green house project. Through a series of amendments and multiple meetings with the Huerfano County Planning Commission, both the Land Use Application and Conditional Use Permits were approved and signed which officially marked “the beginning.” This all came together at the end of May and will allow the commercial cultivation of Marijuana on Colorado Buffalo Ranch Filing No. 5-Lot 61, by a licensed Grower that is certified by the State.
CGRW has been no stranger to price movement. The initial run up from $0.04 to $1.05 just a few months ago has triggered much more attention to be placed on the company and the current projects that it has under development. A much more solidified proof point for CGRW longs will come when the company releases its Phase I and Phase II results. The goal is to become the first large-scale commercial grow operation in Huerfano County Colorado and now that the proper documentation has been procured, the Company can now focus on sourcing materials and manpower for the build out.
According to CannaGrow, “Phase I & II consists of site grading for the ingress & egress roadways, a 3200 sq. ft. head-works building, six 2300 sq. ft. hoop-houses for outdoor grows, an approximate 3,300 sq. ft. state-of-the-art Nexus Greenhouse that utilizes the most up to date technology for the growing of cannabis.”
The full build-out of the grow facility will also include a 6,600 sq. ft. “Nexus Greenhouse”, the 3,200 sq. ft. “Olympia Steel Head-Works” building, and sixteen Hoop-houses. Everything from power to water supply has been accounted for and in order to obtain the CUP, the company made sure to bring on Terracon Consultants, Inc., an engineering company specializing in land development, environmental assistance & geotechnical services.
At the moment, it would appear the company is optimistic about these next steps. In the most recent press release from May, the company stated, “The completion of this Project will provide CannaGrow the basis to begin generating revenues from the licensed Growers sub-leasing the Turnkey Growing Facilities being built to the specifications of CannaGrow consultants, Dr. John P. Janovec and Jason Wells. CannaGrow has already received numerous inquiries from perspective tenants and we are also exploring additional business ventures in the area that could further enhance shareholder value.”
An analyst report written by BOTEC Analysis Corporation finds that indoor and outdoor grow operations yield roughly 40 grams per square foot of space. Multiple harvests per year would obviously increase this ratio. With the Buffalo Ranch facility, roughly 16,000 square feet of grow space would yield 640,000 grams or about 22,583 oz. At an average wholesale price of $2,000/lb, those ounces could hold more “weight” when it comes to the bottom line.
The Trade
Similar to the biotech space, which has been red hot this year, it’s my opinion that speculation and anticipation for the completion of this project could begin to fuel momentum in the market. The current price channel as identified above would suggest that there could be much more room between current price points and the 52-week high of $1.05 where CGRW could respond favorably to positive trading. This is especially in consideration of the recent consolidation the stock has seen as well.
More news and continued corporate updates could be the catalyst for short bursts of momentum in the market during the near term. As far as the long-term outlook of this is concerned, results of Phase completion will be essential.
You’ve likely referred to them as “Marijuana stocks,” or “cannabis stocks” or maybe heard a friend call them “Pot Stocks.” What ever they go by, there’s no denying that the subject of Marijuana Stock investing is a topical one. Ten years ago if you told your parents you were getting into “marijuana” they would have had you pee in a cup, now it seems dad & his poker buddies or mom in the PTA are saying “How do I get into weed?”
Today we see that the business of marijuana is not just one of cultivation and distribution. There are finance companies, consulting firms, industry analysts, security firms, real estate companies, biotechnology, tech start-ups, social media companies all involved in some ancillary vertical associated with cannabis. As the marketplace continues to grow (pun intended) we are seeing well-established industries entering the sector.
Within the capital markets public companies keep sprouting from, it seems, out of nowhere to try and carve out their own green footprint. Cannabis stocks, as volatile as they may be, continue to captivate investors looking to grab their own piece of a brand new industry, the same way their parents did ten plus years ago with “DotCom.” Dot Bong seems to be the millennials’ turn at finding the next Ebay or Amazon. Think about it, if you could have invested in alcohol just as prohibition was ending, would you (assuming that there was an opportunity to purchase shares of a publicly traded alcohol company)? I will be presumptuous and say “yes”f or you; and that’s exactly what’s happening. Marijuana is the newest “sin” sector in the public markets, joining the likes of big tobacco, Alcohol, and Gaming industry.
So do you know how to buy cannabis stocks VS others? It’s very simple and is the same way you would purchase shares of Coca-Cola if you wanted to. The only difference is that most of these stocks will trade on the OTC or “Over The Counter” and regulatory issues could be an obstacle for some who are looking to invest in marijuana stocks. Information is everything and being able to take on the due diligence process is of the utmost importance before considering a cannabis stock as an investment.
A new report out from investment app SigFig shows that 1 in 8 investors have purchased so called “sin stocks”, with 7% of investors buying into tobacco companies. More than 2% of investors have been shown to support marijuana companies; while just under 2% of investors go into both casino gambling and alcohol. A new breed is rising in the market especially when considering an investment into cannabis. “Stuffy” tobacco investors are older and generally live in the South, while investors in this “new crop” of marijuana companies are more likely to live in the Northeast such as in the New York tri-state area.
But here’s the kicker, people are always talking about “younger generations not putting money into the stock market”. But if you take a look into this study, it shows that far and away the disparity between the ages of marijuana stock investors and other “Sin stock” investors is incredibly evident.
The “less money” to invest is exactly what has kept many flocking to cannabis stocks to watch. Take our own Wolf of Weed Street for example, along side thousands of others who were able to take a small investment and make it work for them in BIG ways. While many of these older investors choose to lay their money up for months or even years to find a return of 10-15%, many marijuana stocks have returned 50-5,000% in the matter of days or weeks…that’s not to say that there is typically much more risk involved with small cap marijuana stocks VS the much larger tobacco and casino giants.
When the discussion about marijuana stocks comes about, where do you stand? Do you find yourself in the same mindset of at least 7 high net worth investment funds taking the leap into buying cannabis stocks or are you still watching from the sidelines? Let us hear your thoughts below
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