Cannabis Stock Report: Cannabis Growth files, Canopy Growth Signs, Corbus Pharma Offers
Cannabis Growth Opportunity files IPO
The only people making money passing are NFL quarterbacks… Cannabis Growth Opportunity Corporation (CGOC) announced on Monday the filing of a preliminary prospectus for an initial public offering (IPO) of the company. Opening shares will value at $2.50 per unit, with the company seeking $75 million by July 1, 2018. According to their release, CGOC will invest 60 percent in publicly traded equity securities, while the remaining 40 percent will go towards a private portfolio.
CGOC invests primarily in public and private companies “that derive a significant portion of their revenue or earnings from” cannabis or cannabis-related products and services. With the assistance of StoneCastle Investment Management Inc. acting as the company’s investment manager, CGOC will assess market conditions over time and adjust their portfolio accordingly.
“Generally, however, the Corporation will seek to invest approximately 60% of its total assets in the Public Portfolio and 40% of its total assets in the Private Portfolio,” the company said in a statement. Those interested in purchasing the stock will be able to use cash or exchange the securities of selected issuers as posted in the CGOC prospectus.
Canopy Growth Signs Delta 9
Tin Roof, Rusted… The more well-known of the Growth Corporations, Canopy (TSX:WEED) announced on Tuesday that its family is growing. The company brokered a distribution agreement with Delta 9 Cannabis Inc. (TSXV:NINE). Delta 9’s assortment of cannabis products will now be available as part of Canopy’s CraftGrow line. Tweed Main Street's online store will sell the products, along with many well-established cannabis items already available through the retailer.
Founded in 2012, Delta 9 is a Canadian producer and distributor of medical cannabis. They are the fourth fully licensed company in the country. With 80,000 square feet of production facility space in East Winnipeg, Delta 9 grows medical cannabis in its own self-designed Grow Pod systems. The new partnership with Canopy will focus on local sales in Manitoba as well as nationwide sales via online retailer Tweed Main Street.
"This is the ninth participant in the CraftGrow program, and we are particularly excited to see one of the earliest established producers in our sector come on board,” said Canopy CEO We want to promote the value of our platform approach and welcoming Delta 9's products to our shop speaks volumes to the CraftGrow program's potential."
Corbus Pharma Announces Offering Updates
Why don't you do me a favor? Write your name down on that napkin for me… In other stock offering news, Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) announced on Monday that underwriters exerted their right to buy extra shares of stock from a prior public offering. The group purchased 697,500 stock units at $7.00 a share for a total cost of $4.9 million. The offering closed Monday with aggregate gross proceeds of around $37.4 million.
Corbus focuses its research on rare inflammatory and fibrotic diseases. Current work at the company concentrates on the drug Anabasum, a synthetic endocannabinoid designed to treat the previously mentioned afflictions. Clinical trials of the drug are ongoing at various stages for at least four different ailments or diseases.
“Cantor Fitzgerald & Co. acted as the sole book-running manager for the offering,” Corbus stated in their release about the offering. “JMP Securities LLC and Raymond James & Associates, Inc. acted as co-managers for the offering.”
You load sixteen tons, what do you get… On Tuesday Cannabis Wheaton Income Corp. (TSX.V:CBW) offered up over three million shares of stock as settlement for $3 million worth of debt the company owes to various creditors. The company hopes to preserve its cash flow as a means of working capital as well as to keep current agreements moving forward. TSX Venture Exchange must give the settlement a final approval before shareholders can consider it completed.
A nickel ain't worth a dime anymore (Part II)... Tuesday saw yet another set of financial reports as CannaRoyalty Corp. (CNSX:CRZ) announced third-quarter results for the period ending September 30. Among the company highlights was the launch of its Soul Sugar Kitchen edibles product. "Q3 was a transitional period for our business as we focused on ramping up production of CR Brands,” said CEO Marc Lustig.
If you build it...well, you know… Marijuana Company of America Inc. (OTC:MCOA) made an announcement Tuesday that their 30,000 square foot cultivation facility in Washington State began construction. The hemp and cannabis company partners with Bougainville Ventures, Inc. in the project. "The attainable goal for the joint venture is to deliver the finished project early in Q1 2018 so that our tenant can begin producing revenues shortly thereafter,” said company CEO Donald Steinberg.
News and Notes
And I said, Doctor… HempMeds®, a subsidiary of Medical Marijuana Inc. (OTCMKTS:MJNA) was the sponsor of an International Medical Expo that was held in Colombia. The event included both patients and doctors relaying stories of success with CBD. Medical Marijuana, Inc. CEO Dr. Stuart Titus said at the event, "we are working to bring HempMeds® to Colombia in 2018."
Mr. M.D. (Doctor)... A provisional patent application came down from Veritas Pharma Inc. (CSE:VRT) for the use of cannabis as an opioid enhancer. The patent claims that the combination of cannabis and opioids may help reduce the need for high dose opioid pain management. "We are pleased with Cannevert's latest submission to protect its discovery of a cannabis strain that could potentially reduce the dose and side effects of clinically used opioids while maintaining a good pain relieving effect for patients,” said company CEO Dr. Lui Franciosi.