Satori Resources (V.BUD) makes not-so-quiet mine-based medical marijuana shift

Chris Parry Chris Parry, Stockhouse.com
9 Comments| March 12, 2014


It’s a growth industry.

Medical marijuana, increasingly legalised south of the Canadian border and long okayed for registered patients in Canada, looks to be in Satori Resources’ (TSX:V.BUD, Stock Forum) future after several moves appear to have lined up what they’re calling a shift to ‘agri-mining and agri-pharmaceuticals.’

Satori’s plans aren’t specific, but also aren’t hard to work out, being as their ticker symbol is BUD, and the word Satori describes a strain of marijuana from Nepal known for its ‘cerebral high and strong potency’.

But the quiet rumblings of a potential move into the hemp world didn’t do much for the price of Satori shares until Tuesday, when it jumped 185% as the company announced the signing of medical marijuana industry consultant Scott Walters as an Advisor for Agriculture.

The company has recently gone through a small financing round, and admitted it was ‘evaluating new projects in the ‘agriculture, medical, technology, finance and resources’ areas in recent news releases, but doesn’t get into specifics.

That said, if you put those industries together you get something green, underground, profitable and leafy.
 
Even the Walters announcement buried the lead somewhat, calling him “a senior management consultant to private and public companies within the mining and agricultural industries", and noting he "specializes in due diligence as it relates to a variety of consumer and agricultural products, particularly in relation to Marijuana for Medical Purposes Regulations (MMPR),” before moving on to his investment financing background.

Pretty good chance he’s not being asked to set up a wheat farm.

Satori owns 100% of a mine not far from a Hudson Bay Mining and Smelting facility in Flin Flon where government-contracted mine-based marijuana grow ops supplied around 20% of the regulated Canadian market before they were shut down in 2009. The reason for the closure was the inability of the growers to agree a long term lease with HBM, and that put around twenty people out of work.

The US state of Colorado announced yesterday, having recently allowed medical marijuana, that it had taken in $2 million in tax revenue in the first month of legalized operations. It joins an increasing number of US states moving toward relaxation of marijuana restrictions and taxation of the proceeds.

Mine-based grow operations are considered more secure, better protected from accidental propagation in surrounding areas, and easier to control from a climate standpoint than traditional grow operations.

And there are a lot of empty mineshafts around. Perhaps there'll be one less soon.

Satori has a market cap of $4 million with 46.7 million shares outstanding.

V.BUD shares fell 15% on profit taking after Tuesday’s elevated activity, dropping to $0.085 in late trading Wednesday on extremely heavy volume.

Tags: INDUSTRIAL METALS & MINERALS MARIJUANA

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saskstocks
These plans must have been in the works for a very long time considering when Satori's listing date was... If you look at the history coincidental or not it looks like they never planned on being a ming company at all and had a hidden agenda from day one....
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March 12, 2014
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Johnny881
You need a government permit to be in the medical marijuana business. You don't get a permit just because you want one. The government has given permits to 5 companies, one of which is about to go public soon via a reverse takeover. Wannabe's like BUD and TCH might never get permits and so they will be nothing but pipe dreams literally.
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March 13, 2014
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ABirdsEyeView
I tried contacting them after their first release regarding possible shift in business...nothing.
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March 12, 2014
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Johnny881
The government will want to tightly regulate this industry. They will want to keep profits high and you do that by limiting the number of competitors via permits. Without a permit you are not in business. Its really that simple. I'm not saying it cannot workout for BUD or THC I am just mentioning a big factor (permits) that was left out of the article.
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March 14, 2014
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JBHTEXAS
Does this trade on US stock exchange?
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March 12, 2014
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ABirdsEyeView
For me, the granting of options so early without a publicized game plan suggest you are right and they indeed have something in the works already...
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March 12, 2014
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ABirdsEyeView
Hot sector, and the right symbol. If they execute, one could see big gains here...
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March 12, 2014
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jerrio78
Try contacting the company, its next to impossible. Voice mail was full, emails not returned. I bet the CEO is swamped. In the US right now even web sites supporting pot in some way are up 1000% over night. BUD hinting is not yet enough for a lot of investors to be convinced of the game plan. This is an opportunity for those willing to take on the risk at this point. Maybe they are making magic beans and its not about marijuana at all.
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March 12, 2014
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ABirdsEyeView
I think they will have an easier time getting a permit than you think...IF they are planning to grow, there was already a growop in a mine in Flin Flon that was growing for the government but got shut down in 2009 because of leasing problems...maybe another shot now that government is seeing $$$ from taxation...
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March 13, 2014
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