jafro daweedhound
Well-Known Member
By Andrew Seale | Insight – 4 hours ago
The Smith Falls, Ont.-based marijuana company, which currently sells medical marijuana through subsidiaries Tweed, a Snoop Dogg-hyped lifestyle brand and Bedrocan, the 20-year-old clinical, standardized pricing brand – a.k.a. the older cousin who’s apt to talk about strains and medical benefits as opposed to suggesting you throw on 1993’s Doggystyle on repeat – isn’t the only one currently listed on the venture exchange. Brands like OrganiGram Holdings Inc and Aphria Inc have also made it to the publicly-listed stage. But listing on the TSX could prove to be a coup for the Canadian marijuana company as the Liberals push forward with plans to legalize recreational use by April 2017.
Wayne Adlam, a seasoned veteran with two decades of experience in the capital markets and a lecturer on finance at Western University’s Ivey Business School, points out that the board of Canopy has made it clear their intention is to position themselves to capitalize on the recreational market.
“(They said) we’re going to take this seriously, we’re going to have a facility, we’re going to have a proper inspection, we’re going to have a good board but it was never with the intention of cornering the medical market,” says Adlam, who spent several years of his career on the TSX listing committee. “What they’ve really tried to do is become one of the leaders… so that when the time comes they are very well prepared.”
Currently the company’s market cap stands at $279.67 million and while it has yet to be profitable, the company has alluded that their annual numbers being put out this month could show them reaching earnings profitability. Even still, they’re banking on a market that no one really knows what it’s going to look like.
“If you look at their share price since they went public (in April 2014) it’s been relatively in a narrow ($2 to $3) range – so even in 2014, people kind of felt the same about them that they felt now,” says Adlam. “From a valuation point of view, people are still valuing the company far more on future prospects – it’s kind of like an options value (but) $200 million is a very big options value.”
Adlam points out that while the conditions of the TSX can vary from sector to sector, climbing into the TSX market from the venture exchange – which tends to be home to earlier stage companies – opens companies up to larger institutional buyers.
“There’s a lot of institutions that won’t buy venture stock (they’re) very cautious to get involved in venture financing,” he says. “(Canopy) has a fundamental advantage in the capital markets by being the first to be listed on the TSX so we’ll see how they exploit that.”
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Yahoo Finance Canada/Facebook - A photographer takes pictures for 'High Times' magazine inside Tweed's Smith Falls, Ont. facility. (Tweed/Facebook)
The Smith Falls, Ont.-based marijuana company, which currently sells medical marijuana through subsidiaries Tweed, a Snoop Dogg-hyped lifestyle brand and Bedrocan, the 20-year-old clinical, standardized pricing brand – a.k.a. the older cousin who’s apt to talk about strains and medical benefits as opposed to suggesting you throw on 1993’s Doggystyle on repeat – isn’t the only one currently listed on the venture exchange. Brands like OrganiGram Holdings Inc and Aphria Inc have also made it to the publicly-listed stage. But listing on the TSX could prove to be a coup for the Canadian marijuana company as the Liberals push forward with plans to legalize recreational use by April 2017.
Wayne Adlam, a seasoned veteran with two decades of experience in the capital markets and a lecturer on finance at Western University’s Ivey Business School, points out that the board of Canopy has made it clear their intention is to position themselves to capitalize on the recreational market.
“(They said) we’re going to take this seriously, we’re going to have a facility, we’re going to have a proper inspection, we’re going to have a good board but it was never with the intention of cornering the medical market,” says Adlam, who spent several years of his career on the TSX listing committee. “What they’ve really tried to do is become one of the leaders… so that when the time comes they are very well prepared.”
Currently the company’s market cap stands at $279.67 million and while it has yet to be profitable, the company has alluded that their annual numbers being put out this month could show them reaching earnings profitability. Even still, they’re banking on a market that no one really knows what it’s going to look like.
“If you look at their share price since they went public (in April 2014) it’s been relatively in a narrow ($2 to $3) range – so even in 2014, people kind of felt the same about them that they felt now,” says Adlam. “From a valuation point of view, people are still valuing the company far more on future prospects – it’s kind of like an options value (but) $200 million is a very big options value.”
Adlam points out that while the conditions of the TSX can vary from sector to sector, climbing into the TSX market from the venture exchange – which tends to be home to earlier stage companies – opens companies up to larger institutional buyers.
“There’s a lot of institutions that won’t buy venture stock (they’re) very cautious to get involved in venture financing,” he says. “(Canopy) has a fundamental advantage in the capital markets by being the first to be listed on the TSX so we’ll see how they exploit that.”
@YahooFinanceCA on Twitter
anybody want to invest ????
