Healthcare Stock Surges on Cannabis Supply Agreement

Centric Health Corporation (TSX:CHH), a healthcare stock, climbed after announcing supply and service agreements with Canopy Growth Corporation (TSX:WEED)

Sean Mason | September 5, 2018 | SmallCapPower

The prognosis appears to be good for a Canadian healthcare stock after an agreement with Canopy Growth Wednesday. Here’s some small stocks making big moves on Wednesday, September 5, 2018 (as of 4 pm EST):

Centric Health Corporation (TSX:CHH), a healthcare stock, powered 48% higher to $0.355 on Wednesday after announcing that it has entered into multi-year supply and service agreements with Canopy Growth Corporation (TSX:WEED), in which Canopy Growth will be the preferred education partner and supplier of choice medical cannabis primarily through its Spectrum Cannabis brand to Centric Health and the seniors that it serves both in long-term care and retirement residences, as well as seniors living in the community.

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As well, shares of Wallbridge Mining Company Limited (TSX:WM) rose 25% to $0.125 as the resource junior revealed results from the underground drill program at its 100%-owned Fenelon Gold Property in Quebec, which included 137.63 g/t gold over 4.85 metres.

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Nevsun Resources Ltd. (TSX:NSU), meanwhile, reported that it has agreed to be acquired by Zijin Mining Group Co. Ltd. for C$6.00 per share in cash, or a total consideration of approximately C$1.86 billion. The Zijin offer represents a 26% premium to the C$4.75 per share hostile takeover bid by Lundin Mining Corporation, which was announced on July 26, 2018. Nevsun Resources stock popped 18% to $5.82 following the announcement.

Finally, Antibe Therapeutics Inc. (TSXV:ATE) shares gained 11% to $0.31 after the developer of therapeutics for pain and inflammation announced that it has entered into an exclusive licensing agreement with Kwang Dong Pharmaceutical Co., Ltd. for the development and commercialization of Antibe’s lead drug, ATB-346, in South Korea. Antibe is entitled to receive C$13 million in non-dilutive development and commercial milestone payments, including an upfront payment of C$1.3 million, and a double-digit royalty on net sales in the region.

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Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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