Satori Resources (
TSX:V.BUD,
Stock Forum) is in business!
SadStori no more; Jennifer Boyle’s miner-gone-weedin’ outfit has signed a
letter of intent to option a 50% stake in Jourdan Resources’ (
TSX:V.JOR,
Stock Forum) Picnic Phosphate property, and will be helping them find weedcos to test their phosphate products as grow supplements.
If the deal goes ahead (an LOI for an option is not exactly money in the bank just yet), Satori will get a bargain out of the arrangement, needing to complete a $25k private placement for Jourdan, issue the company 500,000 shares of Satori, and engage in $75k of exploration on the property to earn a 50% stake.
Year two will see another 500k shares (or less, up to $75k in value) go to Jourdan, and another $525k in exploration must happen before the end of the third year of the deal.
Michael Dehn, President and CEO of Jourdan, tells me the plan is for Satori to be “a bit more on the marketing end of the fertilizer side of what we do, specifically to the MMJ growers, and JOR will continue to focus on the fertilizer/rock/metallurgy.”
Dehn explains that the Picnic play is a complex pile of layers of alternating resources that make it interesting as both a traditional metals mining opportunity, as well as a fertilizer deal.
“The tie in with Ni-Cu-Co and phosphate is a geological one only. Our phosphate rocks are hosted within zones of a layered ultramafic intrusive (like a layer cake). Some layers (due to natural segregation in magma in the earth) are Ni-Cu-Co rich. Some are P rich. And others are Ti, Cr and V rich. We have been using Ni as a targeting vector for phosphates in the last 2 years as phosphate zones seem to occur in close (close being 500m to 2km) proximity to the Ni.”
What I love about this deal for Jourdan is it gets them a chunk of the weed market without the issues inherent in doing so as a mining company. It brings them enough money to move forward on their sampling and drilling, Satori takes a little risk and will do the hard work on the marketing side, and if they can deliver a market for Jourdan’s phosphate, both parties stand to make a good deal.
Respect to Satori for getting a deal moving. And a lot of respect to Jourdan, which is positioning itself increasingly well in a surging market while keeping their core business on track.
Neither company has seen much of a move for their shares in light of the news, but Satori's investor base is pretty daytrader heavy, and Jourdan is being held down by a large sell block that is being worked through slowly. I'd expect both sides to do well out of future confirmation the deal will go ahead.
UPDATE: V.JOR ended the day down 14.2%, with 215.8m shares traded.
And speaking of ‘the risk inherent in weed-while-mining’, readers yesterday will have seen Papuan Precious Metals (
TSX:V.PAU,
Stock Forum) had been
halted while IIROC insisted on change of business info being provided, after the company signed an LOI on a dispensary purchase.
I’m expecting to speak to Papuan’s CEO any time now to get some info on what went down, but the lowdown is Papuan fought off the demands, made it clear they’re still a mining company that is just doing a little diversification, and IIROC has
allowed them to resume trading.
Stock is up 15% in early trading.
Papuan is doing a
$500k private placement financing at $0.10 a share, meanwhile. That may seem a small amount considering the Colorado dispensary deal will require $1.25 million to complete, but with the way Papuan has been trading recently, holding off on a bigger PP makes sense.
There has been talk that the dispensary deal can’t happen because Colorado requires any MMJ company to be a resident of the state. To that, Papuan says, “The Company will enter into a facilities rental and support agreement to lease back the premises and lease-hold improvements to be provided to the license holder to enable the expansion of the business. The Company will provide the Dispensary with financial and business consulting and support services to assist the Dispensary in achieving its growth goals. The Company will not be involved in the operations of the Dispensary and under Colorado law is prohibited from doing so.”
Also, “The Dispensary currently occupies approximately 6,000 square feet of warehouse type space and the assets consist of grow equipment, security systems and lease-hold improvements. The Dispensary has been in operation for approximately four years and intends to expand its operation with the financial assistance to be provided by the Company.”
Full disclosure: I own a tiny amount of Papuan – basically enough to purchase an Ikea bookcase and a bag of frozen meatballs. Because I’m a journalist and we make crappy money. I wish I owned more, but I’ll probably have to sell what I have in order to write what I want to write about the company tomorrow without it appearing that I’m in the bag for them.
UPDATE: Spoke to Dev from Papuan briefly today and he had some choice things to say about the trade halt. A shift to the CSE is something he's contemplating, though there's no imminent news on that topic. I'll bring you a LOT more on this tomorrow, including how Papuan got un-halted while Chlormet is still tied down, future Papuan plans, and more.
UPPERS:
It was a day for crapstocks ™ to shine today, as Growlife (
OTO:PHOT,
Stock Forum) jumped 43.9% to lead the pack. Growlife is likely to face a lot of scrutiny as class action lawsuits line up against it and SEC halts and a lack of revenue and trashed supply contracts sully its story.
It’s still overvalued at a $153m market cap, for mine, but clearly a viable daytrader play as 26.4m volume today demonstrates.
Our own Gaalen Engen, in his
daily wrap of who’s suing who, noted Growlife today attracted a new class action firm, noting “a Seeking Alpha writer reported that GrowLife's directors were paid two million shares at a 97% discount of $0.02 per share when the trading price was $0.58 per share” and that there’s another allegation that “two of the company's directors, CEO Sterling Scott and CFO John Genesi (who has only been with the firm since July 2013) were compensated to the tune of $1.1 million when GrowLife reported $4.9 million in sales, giving the two of them 24% of the total [company] revenue.”
Also up, somewhat surprisingly, is Rostock Ventures (
OTCQB:ROSV,
Stock Forum), which has been dropping like it was stock in the Donald Trump Hair Club since early April. It climbed 22% today on moderate volume.
Rostock’s looking to build out an ‘
iWeedz’ mobile app through a strategic partnership with Weed Media.
iHatez.
Crailar Technology (
TSX:V.CL,
Stock Forum), also rose, but I can’t imagine a good reason why unless cash burn is suddenly a metric people are prizing. That thing went up 19.6% on minimal volume.
Perhaps someone though they were buying V.SL and realised their typo too late. That’s how I bought a thousand dollars’ worth of Ginger Beef Corporation (
TSX:V.GB,
Stock Forum) back in the day, which I’d do again before I’d buy Crailar.
Enertopia (
CSE:C.TOP,
Stock Forum) also rose today, bucking recent tradition, when they put out a press release that they’d hired
an assistant operations manager. In as important news, I’m putting out a press release tomorrow to alert the markets of what tea I’ll be having with breakfast. Good chance for a robust green, but don’t rule out a sassy chai, daytraders!
DOWNERS:
Terra Firma Resources (
TSX:V.TFR,
Stock Forum) sell-off!
The most amazing thing about a day where 490,000 shares in Terra Firma Resources were sold is, someone actually bought them! 33.33% drop for the company, nudging it down to $0.01.
Actually, there’s 3.4 million bids on the $0.01 mark yet to be taken up, with 1.7 million asks sitting at $0.015. Terra Firma is my pick for the first mining company turned weedco to say, ‘to hell with this’ and go back to mining. They are now officially back to their pre-weed price, and long holders who are now cashed out thank you for your assistance.
Premier Brands (OTO:BRND, Stock Forum) is now so low that a downward movement of 18.7% in share price requires an extra digit after the decimal point to see it. The company now sits at $0.001, with 150.1 million share volume today. Let’s put that in perspective – they have 183.4 million shares outstanding, so almost the ENTIRE FLOAT changed hands today.
I’d remove the company from our watchlist, but I have to find comedy ammunition somewhere. Also, SOMEONE IS STILL BUYING IT.
Best comment of the day on the Premier Brands bullboard… “
It’s a pump and dump tard.”
So good, I had to turn it into a meme.
NOTE: I have no evidence that it's actually a pump and dump. Maybe just the dump part.
I'll be speaking at the Vancouver Greenrush conference on May 7 - get there early or miss my sassy accent - and I'll also be moderating a medical marijuana panel at the upcoming Vancouver Cambridge House event in early June. Register early.
THE MOVERS: