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The marijuana stock market was under pressure yesterday and many investors are keeping an eye on how this trend continues.
Today, we have highlighted four Canadian company developments that we believe investors need to be aware of.
Reliq Health: Closes Oversubscribed Private Placement
Reliq Health Technologies (RHT.V) (RQHTF) jumped higher after the healthcare technology company closed an oversubscribed private placement. Reliq has been not short of an execution story over the last quarter and we are favorable on the company’s outlook going into 2018.
Over the coming months, we expect to see Relq’s recurring revenue continue to ramp as the company continues to onboard new patients. We also expect to see Reliq close one of its existing pilot programs and this would be a major catalyst for the shares.
Although Reliq Health is up more than 250% in the last quarter, we remain bullish on the shares and see upside to current levels. Investors should keep an eye on Reliq as we expect to see the company continue to execute and exceed expectations.
Canadian Bioceutical: Changes Name and Symbol
MPX Bioceutical Corp. (formerly The Canadian Bioceutical Corp) (BCC.CN) (MPXEF) announced that it has changed its name from The Canadian Bioceutical Corporation to MPX Bioceutical Corporation. The shares will begin trading on the CSE under the new name and new symbol ‘MPX’ on November 6th. The company started trading under its new OTCQB symbol, MPXEF.
MPX Bioceutical CEO Scott Boyes said, “Our name change to MPX, mirrors the brand name of our well-established cannabis concentrate products, and reflects our strategic vision to become a dominant player in the recreational and medical cannabis markets in both the US and Canada. We believe this name change will resonate with the market, helping generate further traction for our brand and corporate presence. Also, I would like to thank our new Board members for their affirmed commitment and support to MPX. This team brings significant and diverse sector-specific experience that further positions the company for success.”
Friday Night: Expands Presence in Nevada
Friday Night Inc. (TGIF.CN) (VPGDF) entered an exclusive licensing agreement with MariMed Advisors to produce MariMed THC products. Alternative Medicine Association will, on an exclusive basis, produce and distribute MariMed products using their proprietary processes and distribute these products to all dispensaries in Nevada.
In addition to the exclusive product licensing agreement, Friday Night’s subsidiary, Alternative Medicine Association (AMA), entered a separate LOI with MariMed on behalf of their client, Harvest Foundation, a Nevada cultivation licensee for medical and recreational cannabis, to operate and manage the 10,000-sq. ft. grow facility. Under the LOI, AMA will manage the Harvest Foundation cultivation and will purchase all the trim and flower produced at a fixed cost per pound. The trim will be used to produce oil, some of which will be used to infuse the products manufactured for MariMed and the remaining to be used for AMA products. This partnership lets AMA expand their product offering and most importantly, secure a source of additional trim and flower supply in the Nevada market.
Friday Night appointed Cameron Watt to the position of Executive Vice President. He has over 30 years of business negotiation and strategic leadership experience in various industries, with a talent for developing, launching and managing businesses.
Golden Leaf: Closes Financing and Acquisition
Golden Leaf Holdings (GLH.CN) (GLDFF) closed its previously announced best efforts private placement of debenture units and issued 18,790 units (comprised of C$1,000 principal amount of debentures and 2,381 common share purchase warrants). The debentures are secured and have a 10% annual interest rate. The debentures are convertible into common shares at $0.21 and mature on November 2, 2019. Each warrant can acquire one common share at $0.28 for a period of 24 months from the closing of the offering.
Aggregate gross new cash proceeds from the issuance of the units was $15,000,000, plus the effective exchange of $3.8 million of existing debt maturing within 6 months. The net proceeds are anticipated to be used for working capital purposes, capital expenditures, inventory and for debt repayment.
Golden Leaf also closed the acquisition of Medical Marijuana Group Corporation (MMGC), a Canadian company that has received its license to build approval and has filed an application for a cultivation license, which, it expects to receive in 2018. Golden Leaf issued 35,714,285 common shares to MMGC, including to the current chairman of the board of directors, who joined Golden Leaf after the agreement to acquire MMGC was entered.