The cannabis sector has been under pressure this week and we are monitoring how the sector closes out the week.
We are in the middle of earnings season and we have seen several big companies report strong numbers. Today, we have issued an update on three companies and will keep an eye on how these stocks continue to trade.
MPX Reports Strong Fourth Quarter Numbers
Yesterday, MPX Bioceutical Corporation (MPX.CN) (MPXEF) released fourth quarter financial results for the period that ended on March 31st and provided a general business update. During the quarter, the company recorded strong growth and generated approx. $8 million in revenue. We are impressed with this growth and are favorable on MPX’s leverage to burgeoning markets in the United States.
Arizona represents the largest market for MPX and we are favorable on the improving fundamentals. The company owns four dispensaries in the states and is producing high-quality cannabis concentrates to sell to consumers. MPX is in the middle of a major expansion and has quadrupled the production capacity of company branded concentrates at its facility in North Mesa.
MPX has made a few accretive acquisitions of dispensaries and we are favorable on these deals. Over the next year, we expect these assets to be a major growth driver and will monitor how the team continues to execute. Earlier this week, MPX was approved to open dispensaries in Maryland and we view this as a catalyst.
The company is led by a management team that continues to execute and this is an important aspect of the story. MPX has several catalysts for growth and we are favorable on the improving fundamentals.
Isodiol and Pure Global Sign LOI
Isodiol International Inc. (ISOL.CN) (ISOLD) has been laser focused on execution and we are monitoring the shares following the reverse split. Yesterday, Isodiol was under a little pressure after announcing a letter of intent with Pure Global Cannabis Inc. (PURE.V) (PRCNF) for the ongoing supply of pharmaceutical and nutraceutical grade CBD isolates and other potential products.
We are favorable on this relationship and will monitor how the teams move this forward. Upon the successful importation and product testing of an initial trial order of raw CBD isolate, the companies intend to establish a definitive supply agreement for the ongoing supply of CBD isolate and intend to explore additional means of collaborating together.
Pure Global represents a strategic partner and is a vertically integrated, growth-oriented life sciences cannabis company led by experienced pharma industry, horticultural, and supply chain experts. The company’s wholly owned subsidiary, PureSinse Inc., is a licensed producer under Canada’s ACMPR and we are favorable on the potential synergies between each other.
TGOD Announces Record Date of Dividend
The Green Organic Dutchman Holdings (TGOD.TO) (TGODF) bounced higher after announced that the record date for the distribution of a warrant is September 28th. We are favorable on the improved visibility and will monitor how the shares trade ahead of this date.
Earlier this month, the organic cannabis producer announced plans to distribute a divided to TGOD shareholders consisting of a warrant in a new corporation (TGOD Acquisitions). Each Warrant will entitle the holder to purchase a unit of TGOD Acquisitions, comprised of one common share and one additional warrant of TGOD Acquisitions, at a price of $0.50 each for a period of 30 days from completion of the arrangement.
All TGOD shareholders, of record as of the Record Date, will be issued a notice from TGOD’s transfer agent, with instructions on how to obtain the warrants they are entitled to. It is anticipated that TGOD Acquisitions will complete an IPO on the Canadian Securities Exchange in the fourth quarter of 2018.
This is a strategic way of creating value for shareholders and will keep an eye on how the market responds to this. Anyone interested in learning more about this should reach out to firstname.lastname@example.org