48North Cannabis Corp. (TSXV:NRTH), one of the Canadian marijuana stocks, has seen its share price climb 26% so far in May
SmallCapPower | May 8, 2019: 48North Cannabis Corp. (TSXV:NRTH), one of the Canadian cannabis stocks, Friday announced that it had accelerated the expiry of certain common share purchase warrants, bearing an expiration date of December 2, 2020. On May 3, the Company revealed that it has received total gross proceeds of C$13,568,570 from the acceleration of the remaining outstanding 18,227,184 Warrants, 18,091,427 of which (99.3% of the warrants available for exercise) were exercised.
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The proceeds from the exercise of the warrants will be used primarily by 48North Cannabis to fund inventory and for working capital and general corporate purposes, particularly related to the execution of its proposed 100-acre outdoor cannabis facility and the development of next-generation cannabis products, which will be available for retail sale in Fall 2019.
In April 2019, 48North provided warrant holders with a notification that any warrants that were not exercised before 5:00 p.m. EST on May 2, 2019, being the 30th day following the occurrence of the acceleration event (on April 2, 2019), would expire and be cancelled.
48North Cannabis Corp. is a vertically-integrated cannabis company focused on the health and wellness market through cultivation and extraction, as well as the creation of innovative, authentic brands for next-generation cannabis products. The Company operates two indoor-licensed cannabis production sites in Ontario with over 86,000 sq.ft. of production capacity. In addition, the Company is awaiting Health Canada approval to start cultivating a 100-acre organic farm.
Shares of 48North Cannabis have surged ~26% so far in May to its current price of $1.11. The Company’s stock is now trading at a market capitalization of C$167 million with a price-to-book multiple of 3.3x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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