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Bhang Inc BHNGF

Bhang Inc. is a Canada-based global consumer packaged goods company, focused on chocolate and cannabis edibles. The Company offers chocolate cannabis edibles in North America and in other parts of the world. Its chocolate categories include cannabis-infused milk chocolates, cannabis-infused dark chocolates and cannabis-infused white chocolates. The Company's cannabis-infused milk chocolates include milk chocolate and ice milk chocolate. Its cannabis-infused dark chocolates include 1:1 CBD:THC caramel dark chocolate, dark chocolate, fried chicken & cola dark chocolate and toffee & salt dark chocolate. Its cannabis-infused white chocolates include cookies & cream white chocolate, and white toast white chocolate. It has collaborations with The Blues Brothers through cannabis infused chocolate. It offers infused joints - BHANG HIGH ROLLER: FIG BAR. Its business includes selling its products in over 2500 retail stores and delivery selling and distribution through licensee partnerships.


GREY:BHNGF - Post by User

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Post by George108on May 12, 2000 5:54pm
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Post# 1912367

news

newsI don't know if anyone posted this or not. If they have I apologize. Digital Gem a Web site in the rough Digital Gem Corp GEM Shares issued 142,308,683 May 11 close $0.58 Thu 11 May 2000 Street Wire by Will Purcell Shareholders await the long-touted launch of Digital Gem Corporation's on-line trading Web site with increasing impatience. The on-line trading site was originally slated to be unveiled late last year, but the date has been bumped forward on a number of occasions, first to January, then to the end of March, and now to +soon.+ A successful launch will not come any too soon for investors, who have seen Digital Gem's share price sag while number of shares outstanding and the published short position surged. A successful launch, and an end to development costs, will come as a welcome relief for the company's accountants as well, who have been using ever-increasing amounts of red ink of late. Digital Gem reported a quarterly net loss of $322,914 to June 30, a further $1.12-million to the end of September, and last quarter, the loss grew to $2.32-million, bringing the nine-month total to a hefty $3.84-million. The mounting losses are primarily due to steady increases in Web site development costs, which now total $1.2-million for the year to date, and general and administrative charges, which also increased exponentially through the year and now stand at $1.52-million for the nine months to date, as the company has added to its roster of high-priced help during the year. There has recently been a defection from the ranks of that high-priced help. Bill Cameron, vice-president of communications, announced he was leaving at the end of this month to +seek new challenges.+ Mr. Cameron arrived just last July, after a career as a reporter and talking head for a number of prominent Canadian Broadcasting Corporation news programs, and at one time he had even been touted as the next anchor for that company's national evening news. That promotion never came to pass, and the offer of an annual salary of $150,000 and membership in the Digital Gem option club may have been enough to entice him to give Digital Gem a try, at least. Mr. Cameron was just a minor appointment in a series of high-priced additions to the management of Digital Gem, and its option club, whose members boasted just under 20 million unexercised options outstanding at the end of February, and an additional 10 million warrants. The number of shares and warrants outstanding will continue to grow substantially, thanks to a rights offering in progress. Investors will receive one right for each share owned, and six rights will allow them to buy one unit for 50 cents. Each unit consists of one share and one-half warrant, with each warrant exercisable at 75 cents per share before June, 2001. The management of the company will purchase up to 14 million units not bought by shareholders, ensuring that the issue will be fully subscribed, and increasing management's grip on the company. That grip has been strengthening steadily, and for the most part, quite cheaply, in recent times. Just three years ago, then known as American Gem, the company was facing bankruptcy as a money-losing miner of sapphires in the United States, under the control of former Minnesota state senator, Gregory Dahl. American Gem did succeed in mining sapphires, but found that selling them was a far more challenging task, and the company racked up losses. American Gem shares traded above $5 in 1994, but steadily declined as those losses grew. By the summer of 1997, a share could be had for a mere five cents, and the company was in serious financial trouble. Mr. Dahl was forced aside, and the remaining directors called upon Yorkton Securities to help save the company. Enter Victor Alboini. Mr. Alboini, once a securities lawyer and a partner with McCarthy & McCarthy, was then executive vice-president and head of mergers and acquisitions with Yorkton. He quickly put together a restructuring plan that would see $11-million in debentures converted into common shares, and creditors paid off in cash at 20 cents on the dollar. A number of the debenture holders subsequently unloaded their holdings and a sweeter conversion rate was ultimately set. Of the 58 million shares issued through the conversion, 39 million went to an investor group that had been buying up the debentures, including Mr. Alboini, who acquired 5.6 million Gem shares through the process. With Mr. Alboini directing things, the Gem board soon added Doug Harris and Alexander Wylie. The three directors did not have to look far to find each other. Mr. Harris was associate director of mergers and acquisitions at Yorkton, under Mr. Alboini, and Mr. Wylie was a senior associate of the same department. Mr. Harris and Mr. Wylie also acquired a significant number of shares through the purchase, and subsequent conversion, of the debentures. Mr. Alboini bought an additional two million shares, at four cents per share, and left Yorkton Securities for good in November, 1998, taking charge at American Gem on a full-time basis. Exactly what prompted Mr. Alboini to leave a career at Yorkton for a company which had a market capitalization of about $3-million is not known, although rumours persist that Mr. Alboini put together a review committee to examine a sizable Yorkton investment, which subsequently went sour. Whether Mr. Alboini soured on Yorkton, or the other way around, the departure paid off for him in the months to follow. The two directors still employed by Yorkton promptly left Gem, and Mr. Alboini brought in new blood, in the form of Wayne Beach and Ian Bradley. Mr. Beach was a tax lawyer who was now involved in financing resource projects, and taking them public, but of far greater importance as it would turn out, he was a one-third owner of Northern Securities Inc., a small correspondent brokerage with about $1-million in annual revenues. On the outside at least, Gem was showing few signs of life. In March, 1999, the company mused about leaving mining and simply marketing its existing stock of sapphires on the Web. Another private placement, needed to retire debt, was completed at the unmercifully low price of 2.25 cents per share. Things looked bleak indeed. The mood changed three weeks later when the company announced it was thinking of buying a brokerage to facilitate its entry into the potentially lucrative world of on-line trading. The news caught investors by surprise. American Gem shares jumped from 4.5 cents to a high of $1 just three days later, with nearly 100 million shares trading in two days. A week later, American Gem put a name to the brokerage when it revealed that it was purchasing none other than Mr. Beach's Northern Securities, for $1.5-million in cash and eight million share purchase warrants. Mr. Alboini's stock position continued to grow as well, as he had graciously participated in the 2.25-cent private placement, acquiring over 4.4 million shares as a result. As well, he received 5.24 million shares through the exercise of options, and a further 500,000 shares as salary. Through all of the transactions, Mr. Alboini had added over 10 million shares to his portfolio, at a total cost of approximately $350,000. He now held 20.87 million shares of American Gem, which were valued at in excess of $23-million at one point in the spring of 1999. It was a profitable time for Mr. Beach and Mr. Bradley as well, as they exercised cheap options to purchase 1,437,500 shares each. Early last May, Nadir Desai and Wesley Roitman had joined American Gem. The announcement caught the attention of investors, and Gem stock peaked at $1.13 following the news. Mr. Desai had been head of the Canadian subsidiary of PSINet Inc., and just weeks earlier he had been promoted to senior vice-president of PSINet Inc. itself. Wherever Mr. Desai goes, Mr. Roitman seems to tag along as his chief financial officer. Mr. Roitman had earlier served under Mr. Desai, at NICNAD Enterprises Ltd., an active-wear manufacturer and retailer. When Mr. Desai jumped to PSINet at the end of 1995, Mr. Roitman followed. As a result, it was no big surprise when the pair made the leap in unison once again, although it was a curious series of leaps as the pair moved from sportswear, to the Internet, to stocks. The latest leap was made more pleasant by the terms of the deal. Mr. Desai and Mr. Roitman owned Digital Fluid Ltd., which apparently held technology for developing e-commerce businesses and also held the employment contracts of the pair. Gem took over Digital, and the two new recruits received about 10 million shares each. Mr. Desai became the president and chief executive officer, at an annual salary of $300,000, while Mr. Roitman became executive vice-president and chief operating officer, worth an annual $175,000. Mr. Alboini stepped down to become chairman and chief executive officer of Northern Securities Inc., now a wholly owned subsidiary, for an annual draw of $175,000, while Mr. Beach, his work apparently complete, stepped aside completely and went on to new projects. The company continued to add high-priced help to its payroll. In addition to Mr. Cameron, Digital Gem also signed AnneMarie Ryan, as vice-president in charge of on-line trading, for $150,000 per year, plus options. Ms. Ryan had once been a senior vice-president with CT Securities, in charge of business development. With the move to Gem, Ms. Ryan now has the chance to compete with her former employer, if she can just get the Web site up and running. As an additional enticement, some of Ms. Ryan's options were tied to the on-line trading launch date, and they may be in jeopardy as a result of the delays. The option train picked up steam through the year. For the second year in a row, shareholders were asked to approve a new stock incentive plan that allowed the company to significantly increase the number of options that might be granted. With approval in hand, the company announced its intention to grant Mr. Desai and Mr. Roitman 6.5 million options each, and a further 6.1 million to Mr. Alboini. The options vest in equal installments over a 40-month period. Digital Gem managed to cut its Web site development teeth last summer, with its on-line sapphire marketing venture. The company reported nine-month sales of just under $800,000, roughly double the operating costs, but it has a finite number of gems and no plans to mine more. The brokerage, meanwhile, has not fared so well. First quarter revenues were a modest $160,277, and a mere $20,639 in the following quarter. The most recent quarter offered an improvement, with $342,465 in revenues, although expenses continued to grow faster than income. Some further improvement is likely in the last quarter of the fiscal year, as eNorthern has been much more active in underwriting new issues. The company has recently been a co-underwriter for Hemosol Inc. and SR Telecom Inc. public offerings, and was the lead underwriter for a 701.com public offering. As well, eNorthern was the sole underwriter for a Stroud Resources Ltd. rights offering, and an Admiral Inc. private placement. Nevertheless, there are likely no profits in store for Digital Gem in the immediate future, although officials are not offering many predictions. Earlier this year the on-line trading vice-president, Ms. Ryan, fudged, +In terms of breakeven, we probably estimate that we would break even in two to three years.+ Digital Gem, still developing its Web site, closed down two cents Friday, at 56 cents.
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