We covered [stock_market_widget type=”inline” symbol=”WRW.CN” template=”basic2″ color=”default” refresh_frequency=”0″] in February, calling the medicinal cannabis products distributer a “King in the Making” and based on its news since then, it appears that WRW is earning its crown, along with several other cannabis companies we wrote about.
Cannabis stock investors seem to agree with us, on March 22, 2017 Green Tree Therapeutics announced that its private placement was oversubscribed, placing CA$2.9 million over its previous CA$2 million target.
The Private Placement consisted of 11,600,000 Units at a price of $0.25 per Unit. The Warrant attached to the Unit is good for two-years at an exercise price of CA$0.50. Now here’s the good news on that… shares of Winston Resources Inc. (CSE: WRW.CN) closed Friday, April 14, 2017 at CA$0.75 per share, so the Warrants are now in the GREEN. Anybody wanna bet that Warrant holders aren’t already looking at taking down those Warrants? If they were all bought, it would double the cash raise: CA$5.8 million.
But wait! There’s more… With cash in the bank, Green Tree Therapeutics (which still trades under the predecessor company’s name: Winston Resources Inc.) added 35 new retailers to its stable of product distributors, according to a news release dropped on cannabis investors on March 28, 2017. The company raked in CA$250,000 in initial sales from those orders.
CEO Sean Bromley was quoted as saying, “This order coincides with our strategy of capturing shelf space in order to add a large number of new distribution outlets/channels.”
On April 10, 2017 Green Tree Therapeutics made its latest news announcement, citing the expansion of products to fill its now-expanded pipeline of cannabis retailers. The Company said that it added two new vaporizers; the “Slim Vape” and the “Variable Vape.”
A company spokesperson was quoted as saying, “By releasing these two new products it strengthens our market share and position in these specific fields.”
Winston Resources Inc. (CSE: WRW.CN, FSE: WNT) shares are up more-then 100% since we first covered the company in the news.
Also in the news, Aurora Cannabis (TSX.V: ACB, OTCQB: ACBFF) announced on April 11, 2017 a bought deal for CA $75 million in convertible debentures. The yield is 7%, paid semi-annually and matures in two years. But with cannabis companies reporting stellar earnings recently, with that kind of cash in the bank, Aurora is set to soar.
Since we first covered Aurora Cannabis (TSX.V: ACB, OTCQB: ACBFF) on March 13, 2017, the company’s shares are up more-than 20% – and that’s after Friday’s 6.9% drop in price.
Aurora Cannabis has also been an outspoken advocate for marijuana legalization, having commended Canadian government efforts to legalize it for adult consumption in a Friday news release.
“This is a historic moment for Canada,” said Terry Booth, Aurora Cannabis CEO. “We’re witnessing the beginning of the end of the prohibition of cannabis and the creation of a framework for safe, regulated adult use, and the establishment of a secure environment for the continued growth of a new cannabis economy that will generate significant investment, innovation, economic development and job creation.”
In the USA, Cannabis Science (OTC: CBIS) recently bounced back, rising more-than 39.4% Friday to close at $0.08 after announcing a deal to grow marijuana on 250 acres in California. The transaction could potentially yield 1600 pounds of CBD-rich cannabis per acre, CBIS stated.
CBIS, along with its partners, looks to become the largest producer of cannabis in the United States.
On April 7, 2017, Cannabis Science announced plans to file an offering memorandum with the Securities and Exchange Commission to raise an additional $25 million in capital to back its expansion plans into the California agricultural cannabis production market. CBIS had stated that in California, there could be several crops generated in a growing season, due to the State’s mild climate. That could make CBIS a real powerhouse, though only recently did it grab cannabis investors’ attention.
Ray Dabney, Cannabis Science President and CEO, commented on CBIS’ plans for a $25 million financing, saying, “Our expansion program is being fueled by the growing market and demand.” Dabney went on to say that, “This all adds additional strength to this ever changing and growing Cannabis industry,” in referencing FDA drug approvals and the costs to develop them.
Not to admit that we’re smoking anything that would cloud our outlook towards cannabis stocks, but so far, the companies we’ve covered have been giving readers a reason to brag, assuming the cannabis investors that follow our news are also following those companies.
It’s not that we have a crystal ball or anything like that. The fact is, the cannabis sector is booming and those companies within it that are showing business savvy-actions are being rewarded by cannabis investors who are pushing up their shares. But we should point out to readers that Winston Resources Inc. (CSE: WRW.CN, FSE: WNT) got more bytes of news coverage in this story and for a good reason. We see WRW as a leader in the making in cannabis stocks.
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