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Buzz on the Bullboards: Intriguing Developments


Stockhouse Editorial
0 Comments| January 18, 2018

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What’s new at Stockhouse? What’s new in the world of cannabis? Recently, these two questions have been almost interchangeable.

So, what’s new in cannabis? Investors need merely have a look at today’s Stockhouse Top-10 Bullboard ranking.

Click to enlarge

Topping the list, we have Aurora Cannabis Inc (TSX: ACB, OTCQB: ACBFF), Newstrike Resources Ltd (TSX: V.HIP, OTCQB: NWKRF), and CanniMed Therapeutics Inc. (TSX: CMED, OTCQB: CMMDF, Forum). Knowledgeable cannabis investors are already familiar with the scenario here. CanniMed is working toward the friendly acquisition of Newstrike. Meanwhile, Aurora has been pursuing its unsolicited take-over of CanniMed.

A war of words commenced between the two companies, via news releases. Now events have taken a new turn in this cannabis triangle. Following an IROC Halt, CMED published a news release today containing the following excerpt:

CanniMed has determined to postpone the [Special Shareholders] Meeting to allow discussions regarding a possible transaction with Aurora Cannabis Inc. (“Aurora”) as permitted under the terms of the Arrangement Agreement between CanniMed and Newstike, dated November 17, 2017. There is no certainty that any such discussion will result in an agreement among the parties in respect of a transaction or in any change to the terms of Aurora’s offer dated November 24, 2017 (as amended).

CanniMed and Aurora have each agreed to a standstill until January 21, 2018 at 11:59 pm (EST)…

Previously, one of the grievances voiced by Aurora in its CMED-related news releases was that the management of CanniMed was not prepared to enter into discussions regarding its unsolicited offer. Now that is all in the past.

Aurora and CanniMed are talking. How has this impacted markets? Have a look at the CMED chart.

BuzzJan18_CMED-(2).jpg
(click to enlarge)

An intriguing development. Now look at the Aurora chart.

BuzzJan18_ACB.jpg
(click to enlarge)

CanniMed spiked to a new all-time high of $34.74, before backing off slightly. On the other hand, even at the high of the day, ACB is well off its previous high. Based on the terms of the original Aurora offer, CanniMed is trading well above any (potential) take-out price. What should investors make of this?

Then there is Newstrike. A day after HIP reported overwhelming acceptance of the CanniMed offer, Newstrike issued its own release consenting to the postponement of the CanniMed Special Shareholders Meeting – to vote on the Newstrike acquisition.

Is a three-way marriage in the cards here? Investors will have to stay tuned for the next installment in this cannabis love(?) triangle.

Meanwhile, slipping past CanniMed into the #3 slot today is St Georges Eco-Mining Corp. (CSE: SX, OTCQB: SXOOF). A new name to many Stockhouse investors, SX has slipped into the Top-10 on a few occasions in recent weeks. What is the “buzz” about St. Georges?

A 52-week high of $2.90; a 52-week low of $0.015. Yes, some people made a lot of money with this Company.

Today? SX closed down 66.83%, all the way back to $0.335. What happened? On Monday, SX reported that its wholly-owned subsidiary had entered into a $150 million deal to acquire a Chinese blockchain company. While investors will have to evaluate the specifics of this deal for themselves, SX has subsequently been punished by the marketplace.

That’s more than enough “buzz” for investors to soak up for one day, so the remainder of today’s Top-10 will receive only honourable mention.

Canopy Growth Corp.(TSX: WEED, OTCQB: TWMJF), Cannabis Wheaton Income Corp. (TSX: V.CBW, OTCQB: CBWTF), Matica Enterprises Inc. (CSE: MMJ, OTCQB: MQPXF, Forum), Friday Night Inc. (CSE: TGIF, OTCQB: TGIFF, Forum), Aphria Inc. (TSX: APH, OTCQB: APHQF), and Isodiol International Inc. (CSE: ISOL, OTCQB: ISOLF, Forum) round out today’s list. All are cannabis companies.


FULL DISCLOSURE: CanniMed Therapeutics Inc., Matica Enterprises Inc., Friday Night Inc., and Isodiol International Inc. are all paid client of Stockhouse Publishing.


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