December’s Marijuana Money Outlook

December’s Marijuana Money Outlook

December’s Marijuana Money Outlook


November was a great month for cannabis stocks.

The MJIC North American Marijuana Index rose by 41% last month, led mostly by Canadian stocks again. Although the US had its best month all year gaining 27% as companies rally ahead of California’s legalization on 1 January.

The Canadian Index rose by 52%.

In the US Marijuana Index, 15 out of 17 stocks in the group experienced gains for the month.

Comparatively, the DJIA rose 3.8% MTD, while the Russell 200 rose by 2.8% MTD.

The best performers included Golden Leaf Holdings (OTCMKT:GLDFF) which rose by 15% for the month, MPX Bioceutical (OTCMKT:MPXEF), which increased by 12% and MariMed (NASDAQ:MRMD) which gained 10%.

The state of Colorado is now releasing sales data on marijuana transactions.

Previously, the state only posted tax revenues, leaving researchers and journalists with guesswork as to how that translated into sales. So far, total sales through October have increased 42% Y-Y and tax revenues through November have increased 16%.

The Big headline this week revolved around CanniMed Therapeutics and Aurora Cannabis. CanniMed is rejecting the hostile takeover by Aurora Cannabis and even asked the government and regulators to step in for help. One group declined involvement, while the Ontario Securities Commission scheduled a 20 December hearing.

Capital Raises

Aphria (APHQF) announced that it entered into an agreement with Clarus Securities Inc., for a C$100 million private placement bought deal. The Company plans to use the proceeds to finance the construction of additional production facilities in Canada and globally where cannabis is legally permitted as well making acquisitions and investments

Maricann Group Inc. (OTCMKT:MRRCF) announced that it has entered into a letter of engagement with Eight Capital and Canaccord Genuity Corp. They have agreed to offer for sale special warrants for total gross proceeds of up to approximately C$20,000,000 Canadian dollars.

That deal was upsized to C$35-M.

Then Maricann also granted the Agents an option exercisable in whole or in part, at any time up to 48 hours prior to the closing of the Offering, to purchase up to an additional 15% of the Special Warrants at the Issue Price. If the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the offering will be C$40,250,000.

Last Monday, EVIO Inc. (EVIO) announcedit has entered into an agreement to acquire 60% of C3 Labs to expand further into Northern California as demand for analytical testing services heats up.

EVIO CEO said that the proposed C3 Labs deal would give EVIO, based in Bend, OR., access to an 8,000 sqf lab and become EVIO’s Northern California hub laboratory. The deal allows EVIO to focus on taking market share in California, as demand for testing services throughout the state is “expected to increase significantly.”

Canadian-based ABcann Global Corp. (OTCMKT:ABCCF) is acquiring medical marijuana clinic Harvest Medicine for approximately C$3-M. ABcann is a cultivator that holds production and sales licenses under the Canadian medical marijuana program and Harvest Medicine is an education-focused, customer-centric medical marijuana clinic that has added 8,500 patients since opening in February of this year. Under the terms of the agreement, ABcann will pay Harvest Medicine C$1.5-M in cash and issue shares valued at roughly C$1.5-M based on a C$1.42 share price of ABcann stock.

Goldman Sachs analyst upgraded GW Pharmaceuticals (NASDAQ:GWPH) from Neutral to Buy and lifted the price target to 174, suggesting roughly 40% upside from current markss. The company announced last Wednesday that it has now reacquired full ownership of the development and commercialization rights to Sativex® (nabiximols) in the US.

Innovative Industrial Properties, Inc. (IIPR), announced a Q-4 Y 2017 dividend of 0.25/share of common stock, representing a 67% increase over the Company’s Q-3 Y 2017 dividend of 0.15/share of common stock.

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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