Medical marijuana update: Six more companies jump into MMJ as Tweed IPO looms

Chris Parry Chris Parry, Stockhouse.com
13 Comments| April 3, 2014


Updated at market close:

Big stomping medical marijuana player Tweed (TSX:V.TWD, Stock Forum) will officially list on the TSX Friday and is expected to explode on IPO. The company is prepping a 50,000 sq. ft grow facility in Smith Falls, Ontario (across the street from an RCMP office) and has a website in place that will be selling 25 strains to Canadian patients for prices between $5-$12 per gram, including shipping, delivered by bonded courier.  Minimum order is one gram.
 
I’m told the facility is a former chocolate factory? Might be worth keeping some of the old machinery in place and adding a profitable second revenue stream…
 
In expectation of that launch, and with the theory that a rising tide will list all boats, other weed players are on the move.
 
Maple Leaf Green World (TSX:V.MGW, Stock Forum) continued its rapid rise Thursda, up 63.6% on heavy trading. The company had announced the signing of a VP of grow operations Wednesday. It’s up 1750% since Mid-March and is much liked for its existing agricultural operations.
 
Chlormet Technology (TSX:V.CMT, Stock Forum) continued to climb Thursday on the back of its breakdown Wednesday of how it will proceed into the MMJ business.  That stock jumped 50.8% Thursday to $0.445.
 
Other upward movers are in the Tier 1 ‘rumor mill’ side of the sector, with West Point Resources, Seaway Energy, Southbridge Resources and Meridex Software positive.
 
A lot of Tier 2 (defined plan) and Tier 3 (engaging in real business) companies are still being punished in the current daytrader-heavy marijuana sector. Next Gen Metals (CSE:C.N, Stock Forum) has announced registration details of its upcoming Marijuana investors conference, but is continually punished on the retail side, down 15.7% today and perhaps presenting value for long holders who jump in now.
 
Enertopia (CSE:C.TOP, Stock Forum) is down too, 14.2% down to be exact, on announcing it is paying $5k a month and granting 100k stock options to their social media guy, and that it raised $177k in warrant money. Hey, I know social media.. I’ll do it for $4k and 75k stock options.. let the bidding war begin!
 
Satori Resources (TSX:V.BUD, Stock Forum) – or as it is increasingly being referred to, SadStori Resources - is trading again. The company is down 5.5% today after a news release that looked very regulator-inspired, repeating that it is looking into the weed sector and noting that the wild share price fluctuations they’ve seen are down to the sector, not any inside news. One Stockhouse Bullboard wag posted an ‘alert’ that the company had hired three weed experts to its board. Click here to see who. What’s clear is, this company needs help getting its story out… assuming there’s a story to tell.
 
UPDATE: A Satori fan in the comments below was annoyed I linked to a picture of the Trailer Park Boys, apparently thinking I really thought the company was actually bringing on Bubbles as a consultant. I can only apologise if anyone bought stock thinking the company was hiring sitcom comedians to advise their future business activities, but with the way the sector is rolling right now, such a move may well have offered a share bump. If anyone can get Seth Rogen and James Franco as spokespeople for their former mining shell, I’ll jump in for apiece.
 
Thelon Capital (TSX:V.THC, Stock Forum) has taken the whole ‘weed consultant’ play to a new level by announcing its new weed consultant is also going to be CEO and President. Scott Walters, who has been a Bay Street player for longer than he’s been a weed expert, steps into the role. The company also announced it received $1m from exercised warrants. Stock price largely unchanged, and until it actually announces some sort of move in the sector beyond Walters’ appointment, it remains a Tier 1 Rumor play.
 
Cavan Ventures (TSX:V.CVN, Stock Forum) announced Thursday that it will seek help from Robson Capital Markets to raise money for… wait for it… a drill program on their graphite property. Stock down 10%.
 
Windfire Capital (TSX:V.WIF, Stock Forum) hired a consultant. Market yawns. You know what would be interesting? If a company getting into the sector had enough knowledge of the sector to not need a consultant, you know? To me, hiring a consultant and putting out a news release about it says to the market “We’re in, but we have no actual idea what we’re doing,” and that’s not something I want to invest in, especially in a deep and growing field. Stock down 14.7%.
 
Modern Mobility Aids (OBB:MDRM, Stock Forum) announced they have a new CEO, and it’s not a grower, not a consultant, not a stock promoter. He’s a lawyer, former counsel to US Congressman Barry Goldwater, ha experience in MMJ application processes and SEC compliance. That’s how you do it, though the market shrugged.
 
Easton Pharmaceuticals (OTO:EAPH, Stock Forum) announced a new COO and an update on their MMJ plans: In short, exploring options. Stock down 7.4%.
 
 
 
NEW PLAYERS:
 
Rango Energy (OTCQB:RAGO, Stock Forum) is going to spin its JV agreement with Innex Energy into a new company as looks to “new business initiatives” away from oil and gas. Which initiatives would they be? It took a few hours for confirmation. The company will rename itself Verde Science and “transition to providing medical marijuana products and services.” Down 4% at noon, level by close.
 
West Point Resources (TSX:V.WPO, Stock Forum) announced it intends to “actively source, evaluate and conduct due diligence” on a bunch of sectors, including medical marijuana. Which translates to “we’re looking at medical marijuana.” Up consistently all day to close up 55.5%.
 
Majescor Recources: (TSX:V.MJX, Stock Forum) is going to “evaluate new business ventures, including but not limited to, opportunities in agriculture, medical, technology, finance, resources, and oil and gas.” Which translates to “we’re looking at medical marijuana.” Up 16%.
 
Jourdan Resources (TSX:V.JOR, Stock Forum) has a novel way of getting in on the ganja craze – it’s providing phosphate rock samples to ChroniCare Canada, a privately held medical marijuana producer, for testing as weed fertilizer. Stock is up 14.2% on loose association and, perhaps, the fact that they’re growing an existing business rather than changing horses mid-stream.
 
Calyx Biosciences (TSX:V.CYX, Stock Forum) sent out an update to its plans to enter the medical marijuana business Thursday morning which essentially said, “we’re entering the marijuana business, you guys!” Shares jumped as much as 98% before profit-taking brought it back down to a 53% increase from the open - even though the MMJ shift had been first announced days ago.
 
Bayhorse Silver (TSX:V.BHS, Stock Forum) has also entered the fray, initially gaining 21% before profit-taking took it back to level. The company says it’s not leaving its core business, but is adding value to shareholders by exploring MMJ on the side, so investors get two plays for the price of one.
 
Next Generation Energy (OTCQB:NGMC, Stock Forum) announced it was in to the weed field a few weeks ago, but I’m adding them to our coverage now on the news their new weed subsidiary, Nextgen Cannabis Consulting, has signed an LOI to buy 20% of Greens R Us, a private dispensary outfit in Los Angeles. It’s not exactly a Tony Montana-sized play, but it’s an entry point. Stock is up from $0.01 in early March to $0.045 now.
 
Full disclosure: Both Calyx and Bayhorse are Stockhouse Publishing clients.
 
 
THE MOVERS:
V.MGW   0.090 +0.035 +63.64% 3.97m
V.WPO   0.070 +0.025 +55.56% 511.31k
V.CYX   0.100 +0.035 +53.85% 6.07m
V.CMT   0.445 +0.150 +50.85% 1.68m
V.SEW   0.280 +0.070 +33.33% 43.1k
C.SOU   0.420 +0.075 +21.74% 25k
V.MJX   0.105 +0.015 +16.67% 236.06k
V.JOR   0.040 +0.005 +14.29% 969.72k
V.WER   0.045 +0.005 +12.50% 178.25k
ROSV   0.085 +0.008 +10.39% 278.39k
V.MSC.H   0.255 +0.020 +8.51% 658.5k
C.AFI   0.340 +0.005 +1.49% 951.41k
V.ACP   0.050 0.000 0.00% 232.53k
MDRM   0.188 0.000 0.00% 1.41m
V.PFE   0.115 0.000 0.00% 40.44k
V.TFR   0.020 0.000 0.00% 294.1k
V.SNR   0.160 0.000 0.00% 0
V.SL   0.055 0.000 0.00% 6.23m
V.PXR   0.035 0.000 0.00% 19k
V.BHS   0.140 0.000 0.00% 741.06k
RAGO   0.100 0.000 -0.40% 2.69m
V.NSP   0.360 -0.005 -1.37% 226.41k
PHOT   0.588 -0.013 -2.16% 13.7m
V.THC   0.135 -0.005 -3.57% 4.08m
C.GHG   0.125 -0.005 -3.85% 412k
V.CL   1.230 -0.070 -5.38% 815
V.BUD   0.085 -0.005 -5.56% 6.93m
EAPH   0.042 -0.003 -7.44% 12.02m
C.ATT   1.720 -0.180 -9.47% 626.89k
V.CVN   0.045 -0.005 -10.00% 1.18m
V.EEC   0.030 -0.005 -14.29% 32.5k
C.TOP   0.600 -0.100 -14.29% 190.8k
PMXO   0.022 -0.004 -14.45% 14.06k
V.WIF   0.145 -0.025 -14.71% 84.1k
C.N   0.375 -0.070 -15.73% 145.71k
V.AMS   0.150 -0.040 -21.05% 165k
 

BONUS FEATURE:
SECTOR MOVERS SINCE WE STARTED COVERAGE OF THE COMPANY:

TICKER START NOW INC/DEC % SHIFT
V.SEW   0.025 0.280 +0.070 1,020.00%
C.SOU   0.05 0.420 +0.075 740.00%
V.MSC.H   0.07 0.255 +0.020 264.29%
V.MGW   0.025 0.090 +0.035 260.00%
V.NSP   0.22 0.360 -0.005 63.64%
V.CMT   0.29 0.445 +0.150 53.45%
MDRM   0.125 0.188 0.000 50.40%
V.THC   0.09 0.135 -0.005 50.00%
C.N   0.267 0.375 -0.070 40.45%
V.WER   0.035 0.045 +0.005 28.57%
NGMC   0.035 0.045 -0.005 28.57%
C.AFI   0.27 0.340 +0.005 25.93%
V.CYX   0.08 0.100 +0.035 25.00%
V.EEC   0.025 0.030 -0.005 20.00%
C.GHG   0.105 0.125 -0.005 19.05%
V.JOR   0.035 0.040 +0.005 14.29%
V.CVN   0.04 0.045 -0.005 12.50%
V.SL   0.05 0.055 0.000 10.00%
V.WPO   0.065 0.070 +0.025 7.69%
V.AMS   0.15 0.150 -0.040 0.00%
V.PXR   0.035 0.035 0.000 0.00%
V.TWD   0.00 N/A N/A 0.00%
RAGO   0.10 0.100 0.000 -0.50%
V.MJX   0.11 0.105 +0.015 -4.55%
V.BHS   0.155 0.140 0.000 -9.68%
V.SNR   0.18 0.160 0.000 -11.11%
PHOT   0.676 0.588 -0.013 -13.02%
V.WIF   0.17 0.145 -0.025 -14.71%
ROSV   0.10 0.085 +0.008 -15.00%
V.ACP   0.06 0.050 0.000 -16.67%
C.ATT   2.10 1.720 -0.180 -18.10%
V.BUD   0.105 0.085 -0.005 -19.05%
V.CL   1.54 1.230 -0.070 -20.13%
V.TFR   0.03 0.020 0.000 -33.33%
C.TOP   0.92 0.600 -0.100 -34.78%
V.PFE   0.19 0.115 0.000 -39.47%
EAPH   0.07 0.042 -0.003 -39.57%
PMXO   0.21 0.022 -0.004 -89.57%

Check back daily for the latest news in this sector.

For more stories on this sector, see our Medical Marijuana section.

Follow me on Twitter at @ChrisParry

Send tips, news, suggestions to chris(dot)parry(at)stockhouse(dot)com

Tags: INDUSTRIAL METALS & MINERALS OIL & GAS E&P ENERGY INDUSTRIALS

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MarketLady
Your post have become less and less professional. It looks like Chris Parry has a vendetta against Satori Resources. You for one, should of better knowledge of posters on stockhouse that spam or posts nonfactual crazy claims on stockhouse boards. For you to even mention the below is just beyond words. As stated in your post "One Stockhouse Bullboard wag posted an ‘alert’ that the company had hired three weed experts to its board. Click here to see who. Satori Resources." Th...
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April 3, 2014
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canadian1969
Grower here. Interesting article. Yes, look for huge QA/QC issues with mmj production. it is a plant that is easy to grow, i.e. 'weed' as it will grow reliably under a variety of conditions, BUT that doesn't mean that medical grade (consumption grade) product is easy to grow. Quite the opposite. Add to that a changing landscape of growing technologies (e.g. led lighting) and I can guarantee production, quality and consistency issues all round. It takes many crops to "dial-in...
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April 5, 2014
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BigBalls2
great article *rotfl*
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April 3, 2014
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baseball17
So what would be a good mmj stock to buy? Wow, many out there. thanks.
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April 4, 2014
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BULLISSHCOWBOY
on cyx do you see a bullish symetrical triangle forming.....showing 58 cents ....higher highs 68 cents,,,,,looks like good entry at 11 cents??? tecnicals play a major role in investing,,,,any thoughts
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April 5, 2014
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Johnny881
Excellent coverage Chris. Thanks.
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April 4, 2014
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KaeKam44
What the heck is going on with CYX???? They should be in the top 2. I'm at a loss
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April 27, 2014
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BigBalls2
RAGO and Harp Sangha - failed as CEO of Douglas Lake Minerals, was not able to raise a coin for some good oil and gas project and now going into the 420 business? Give me a break. AVOID.
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April 3, 2014
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CrashCab
Tweed will not be the only kid on the block! V.WER currently in advanced negotiations with a licensed privco grow-op. Retired RCMP officer/expert in the field working closely with them. My money is on these guys! All the ducks lining up nicely.
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April 12, 2014
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groovylove11111
http://online.wsj.com/article/PR-CO-20140410-907819.html
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April 10, 2014
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