Canopy Growth (CGC:TSXV) stabilized Monday, rising 2.2% on 1.8 million shares traded, after selling off to finish last week.
Canopy and OrganiGram move to secure cash
A few companies, including Canopy Growth and OrganiGram, moved swiftly to capitalize on the recent spike in interest related to the marijuana sector.
On October 23rd, Canopy Growth announced a $12.5 million bought deal. The price? $2.05 per share. Now, this seemed like a good price to many, especially considering Canopy Growth closed at $1.58 on October 2nd. However, what the company probably didn’t bank on was that its shares would hit a high of $3.69 on November 5th. Now, with a $2.05 private placement agreed upon, but not yet closed, Canopy Growth is giving back some of its gains. After two days of selling pressure and declines, Canopy rebounded 2.2% to close at $2.71 per share Monday afternoon.
Canopy Growth – 3 Month Chart
In respect to the financing, the company reported:
“The closing date of the Offering is scheduled to be on or about November 17, 2015 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.”
Click here to read the entire press release.
Tweed was among the first companies to receive a licensed under the Marihuana for Medical Purposes Regulations to produce and sell marijuana to authorized customers.
Canopy Growth’s Tweed goes Jamaican
Canopy Growth‘s wholly-owned subsidiary Tweed announced in October that it will sponsor the High Times 2015 Jamaican & World Cannabis Cups taking place in Negril, Jamaica.
Blaine Dowdle, Tweed’s Head of International Development, commented that:
“Today marks a significant step forward for Tweed as we prepare to move outside our Canadian borders and begin building relationships with the Rastafari community in Jamaica.”
Tweed reported that:
“The Jamaican market is a logical place for Tweed to extend its brand presence outside of Canada. In addition to recently relaxed cannabis laws, the island of Jamaica and the Jamaican people have a long and established history with the cannabis plant.”
Click here to read the entire press release.
OrganiGram moves to capitalize on rising stock
OrganiGram reported on November 5th that it “will issue an aggregate of 3,298,077 units (“Units”) at a price of $1.04 per Unit (the “Offering Price”) for net proceeds of $3,430,000.”
Click here to read all the details about OrganiGram’s latest financing.
What is so amazing about this announcement is that less than a month earlier, OrganiGram traded for just $0.195 per share. It has been a while since the TSX Venture provided these types of gains in any one sector.
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Three of the TSX Venture’s 10 most liquid stocks on Monday were from the marijuana sector. We’ve written about increasing interest in the marijuana space for weeks at Pinnacle and summed up the opportunity in a Weekly Volume titled Trudeau bets $1 billion on this sector.
The Venture gave up ground Monday, falling half a point as all North American indices declined in value. Canopy Growth and OrganiGram are expecting the newly elected Liberal government to legalize recreational marijuana in the near future.
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