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Medical marijuana update: Trade halts and RTOs bring market back to ‘interesting’

Chris Parry Chris Parry, Equity Guru
21 Comments| August 2, 2014

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Anexco Resources (CSE:C.AXO, Stock Forum) was trade halted today with no news accompany to explain why. The company, which had announced it would be renaming itself Kaneh Bosum as it put together a 6k sq. ft grow facility and played in the vending machine market a little, has been light on news since my early July deep dive, but the stock has been very active, with a steady incline for most of the last month taking the price from $0.13 up to $0.23.

Tight float. Low market cap. To me, it’s a wait and see, but a few hundy thrown down on the cheap might pay off nicely down the road.

They’re not the only trade halted stock today on the weedspace. CRAiLAR Technologies (TSX:V.CL, Stock Forum) also took a powder for part of the day on news it would be putting together a $6.5m financing at $0.50 per share.

Problem with that plan? The stock was sitting at $0.60 when it was announced. It’s at $0.425 now, down 29%.

Downward mobility for CRAiLAR is almost a martial art for them of late. The stock was at $1.83 in late February, shortly before I first noted that the company seemed to raise $3.2m every quarter, and also lose $3.2m every quarter.

The $6.5m raise should mean they won’t need to raise AGAIN in three months, but they’ll likely need to do so again within six. Because, realistically, it’s what they do. Sure, it’s a company in growth/test mode, but it’s been in that mode a long time. If there is a business there, my thinking is we’ll all be able to get in on it at $0.15 per share in a month when that financing starts to take on water.

The company is seeking to develop renewable and environmentally sustainable materials using hemp and flax. They’ve been testing with Ikea and have a CFO from Adidas on the board. Those are nice pieces of a corporate puzzle.

But it’s a financing boondoggle to this point and the latest financing, significantly below the trading price, must assuredly have been put in place long before it was publicly announced (shares were at $1 in early July), so what does that tell you about where management saw their share price going, and how fast it would do so?

The warrant price is $0.0535 – which is not attractive as I type.

I stopped pounding on CRAiLAR months ago to give them a chance to set things right, but this is not that. This is a bad scene for investors, especially when other companies are riding high.

Speaking of getting higher, Stockhouse Publishing client Cannabis Technology (CSE:C.CAN, Stock Forum), one of my favourite plays right now (and something I bought into recently, so haven’t been discussing such that I can avoid any conflict of interest or appearance of bias), rode the light fantastic today, following a Financial Press piece titled “If big pharma isn’t nervous, they should be.”

It’s a puffy advertorial piece that just happened to expose US investors to the story at just the right time – the stock had fallen off a chunk from earlier in July, when it was trading at $0.60 and emerging as a Canadian weedspace leader, to the $0.325 it opened at today. To me, and anyone who hadn’t looked at the share in a few weeks and was shocked at where it was now sitting, it was clearly value at that price. Hell, I think it’s value at $0.60.

So, full disclosure, I loaded up.

16.4% rise today, with the stock climbing back to $0.39 on consistent buying. The US markets are starting to pay attention too through the CANLF ticker, and there will be a steady flow of news emerging as the company brains keep churning out new IP.

Duly warned.

Satori Resources (TSX:V.BUD, Stock Forum) has been in the news this week, following the announcement Monday that my consulting partner, Tegan Adams, was brought in as a consulting COO of sorts for the next month or so, to evaluate potential deals.

That process has already seen some shifting at the Satori HQ, with a potential project that was under consideration now scrapped in favour of a less expensive and seemingly comparable deal. We’re talking nothing more than exploratory talks at the moment, from what I understand, but I can share that I will be in Toronto next week and will be taking a day deep diving on every aspect of the company on that Friday.

I’m not promising glowing reports. I’m promising in-depth reports. Those who have spent months wondering where Satori would be taking that BUD ticker symbol will know everything that’s fit to print from that day forward.

In full disclosure: Satori will be paying my way out there. I imagine they’re going to try to get me drunk and shovel steak in my mouth, maybe introduce me to wanton locals with trashy lipstick. I may allow some of this to happen. I bought some last week, and yesterday again. Please consider this in any buying decision you make.

BUD stock has shifted upwards today, hitting $0.055 for most of the day before a late bout of profit-taking. Considering it opened the week at $0.045, and there are bids stacking up, this would appear to be the engine whine before the gears shift.

Monetarily, it really won’t take much to get Satori to a double. But investors clearly need to see something before they’ll go there, and fair play on that.

ALSO ON THAT TRIP:

Will likely be meeting with the Bedrocan crowd, hoping to get to MedCanAccess to see how their patient referral network is coming along, might stop in with MedReleaf and there’s a few more I can’t talk about yet.

Speaking of Bedrocan, the wonderful billionaire-based business site CEO.CA quoted me heavily on a story about Bedrocan’s upcoming listing. The vehicle will be POCML 2 Inc. (TSX:V.PCC.P, Stock Forum) - Get it on your watchlist – this will be a SMALL float and will open with a way smaller market cap than comparable Tweed.

In other soon-to-list news, MedCannAccess will be dropping onto the exchange via the vehicle of Buccaneer Gold Corp (TSX:V.BGG, Stock Forum) shortly.

$250k in revs so far this year. 400 doctors in their patient referral network. $3m raised in PP financing, a million or so already in place.

I hereby insert this into my top 5 most promising weedcos. I can’t guarantee it’ll be acquired by a big dog within months of going public, but I think it’s the acquisition target most likely. Every grower needs what they’ve already built.

Prescient Mining (CSE:C.PMC, Stock Forum) drove up 31% today so $0.60. Stock is plain nuts. Play it at your own risk. It frightens me a little.

Modern Mobility Aids (OTO:MDRM, Stock Forum) got up to date with their SEC filings yesterday, and jumped 16.7% in trading as a result. I still don’t see any play there, but if there’s something coming, this was a good sign.

Creative Edge Nutrition (OTO:FITX, Stock Forum) has gone up consistently all week. Which might be a sign that insiders are done dumping their stock. Keep an eye on it, as there was considerable annoyance building with the shareholder base around those early morning share dumps before this week, so I wouldn’t be surprised to see it return soon. #notevenwithabargepole

THE MOVERS:
Prescient Mining Corp 0.600 +0.145 +31.87% 169.5k
Affinor Growers Inc. 0.530 +0.080 +17.78% 648.92k
MODERN MOBILITY AIDS INC 0.080 +0.012 +16.79% 542.14k
Cannabis Technologies Inc 0.390 +0.055 +16.42% 542.38k
Growlife Inc 0.080 +0.010 +14.29% 2.4m
CREATIVE EDGE NTRTN INC 0.061 +0.007 +12.11% 23.26m
Pacific North West Capital... 0.055 +0.005 +10.00% 20.33k
EASTON PHARMS INC 0.016 +0.001 +6.67% 4.94m
West Point Resources Inc. 0.165 +0.010 +6.45% 34.5k
Tweed Marijuana Inc. 2.530 +0.100 +4.12% 101.12k
Next Generation Management... 0.016 +0.000 +0.63% 139.05k
88 Capital Corp. 0.130 0.000 0.00% 0
Alchemist Mining Inc. 0.060 0.000 0.00% 0
Ansell Capital Corp. 0.050 0.000 0.00% 0
Enertopia Corp. 0.135 0.000 0.00% 67.5k
Cinaport Acquisition Corp. 0.010 0.000 0.00% 0
Satori Resources Inc. 0.050 0.000 0.00% 438.8k
Seaway Energy Services Inc. 0.340 0.000 0.00% 0
Thelon Capital Ltd. 0.045 0.000 0.00% 0
Terra Firma Resources Inc. 0.010 0.000 0.00% 0
Senator Minerals Inc. 0.085 0.000 0.00% 0
Windfire Capital Corp. 0.165 0.000 0.00% 0
ROSTOCK VENTURES CORP 0.016 0.000 0.00% 1.1k
Prominex Resource Corp. 0.020 0.000 0.00% 0
Cavan Ventures Inc. 0.040 0.000 0.00% 0
Maple Leaf Green World Inc. 0.070 0.000 0.00% 18k
Weststar Resources Corp. 0.040 0.000 0.00% 0
Calyx Bio-Ventures Inc. 0.090 0.000 0.00% 541.7k
GeoNovus Minerals Corp. 0.050 0.000 0.00% 293.4k
Majescor Resources Inc. 0.065 0.000 0.00% 0
Jourdan Resources Inc. 0.025 0.000 0.00% 0
Papuan Precious Metals Corp. 0.055 0.000 0.00% 7k
Spearmint Resources Inc. 0.030 0.000 0.00% 0
Green Swan Capital Corp. 0.075 0.000 0.00% 0
Arrowhead Gold Corp. 0.040 0.000 0.00% 0
Totally Hip Technologies Inc. 0.125 0.000 0.00% 12
AXE Exploration Inc. 0.020 0.000 0.00% 0
Victory Ventures Inc. 0.020 0.000 0.00% 0
Anexco Resources Ltd.H 0.230 0.000 0.00% 0
Lexaria Corp. 0.160 0.000 0.00% 20k
Naturally Splendid Enterpr... 0.325 -0.005 -1.52% 15k
Chlormet Technologies Inc 0.125 -0.005 -3.85% 60k
Supreme Pharmaceuticals Inc 0.380 -0.020 -5.00% 250.99k
Abattis Bioceuticals Corp. 0.510 -0.030 -5.56% 184.13k
PMX COMMUNITIES INC 0.015 -0.002 -9.09% 339.11k
Matica Enterprises Inc 0.130 -0.015 -10.34% 203.5k
Global Hemp Group Inc 0.075 -0.010 -11.76% 12k
Next Gen Metals Inc. 0.070 -0.010 -12.50% 124k
GREEN AND HILL INDUS INC 0.400 -0.068 -14.53% 376.96k
Verde Science 0.013 -0.004 -23.08% 1.54m
Crailar Technologies Inc. 0.425 -0.175 -29.17% 584.86k




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