A new analyst report values the potential for a medically focussed cannabis producer after suffering a reversal in a potential merger.
Greg McLeish, analyst with Mackie Research Capital covering the cannabis space issued a new research data report stamping WeedMD (TSX:WMD) with a one-year price target of C$4 and retained his “Buy” rating.
McLeish highlighted the company’s current cash situation and said its funded capacity provides a strong asset.
“This strong cash position will also allow management to pursue strategic acquisitions and address potential working capital requirements,” McLeish wrote, according to Cantech Letter.
“Ultimately, together we [Canopy and Hiku] will continue to build one of the world’s most engaging and successful cannabis retail and brand business,” Alan Gertner, CEO of Hiku said in a statement.
Thanks to the annulment from Hiku, WeedMD obtained a C$10 million termination fee, which the company highlighted as part of its cash position.
WeedMD’s stock declined immediately following the announcement from Canopy and Hiku, and continued with the company reaching a C$1.49 price point per share from its previous close on Tuesday (July 17).
Since the Hiku reversal on July 10, WMD has declined in price 27.32 percent.
McLeish’s new projection comes after endorsing the original merger with Hiku in a previous note.
Support from the financial community for WeedMD shows a strong foundation from the cannabis producer as it recovers and begins searching a potential new entry into the recreational cannabis space.
WeedMD will now have to deliver on its business strategy for investors to return to its side following the decline of the Hiku reversal.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Hiku Brands is a client of the Investing News Network. This article is not paid-for content.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).