48North Cannabis Makes a Positive Stock Market Debut

48North Cannabis Corp. (TSXV:NRTH) has adopted a differentiated female brand positioning, incorporating genetics from the Netherlands

SmallCapPower | June 13, 2018: 48North Cannabis Corp. (TSXV:NRTH) opened at a ~40% premium to the issue price of $0.90 on the Toronto Venture exchange (TSXV) as it commenced trading on Monday under the symbol NRTH. 48North Cannabis shares hit an intraday high of $1.30 before closing about a percent higher at $0.91. Formerly Kramer Capital Corp., the company qualified for listing following a three-cornered amalgamation of Kramer Capital Corp., a capital pool company with 48North PrivateCo, a cannabis company, and a wholly-owned subsidiary of the company.

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Unlike majority of cannabis producers that are focused on male consumers, 48North Cannabis has adopted a differentiated female brand positioning with the goal of becoming a leader in women’s health and wellness through innovative cannabis products. 48North Cannabis will combine its cultivation facilities that incorporate genetics from the Netherlands with expertise in the consumer-packaged goods, as well as partner with existing U.S. and global brands, to roll out CPG products at the retail level upon recreational legalization.

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48North’s wholly-owned subsidiary, DelShen Therapeutics Corp., is an ACMPR licensed producer with a 40,000 sq ft facility in Kirkland Lake, ON with 2,500 kg/yr production capacity. DelShen is planning a two-phase expansion at the facility for an additional 200,000 sq ft with 40,000 kg/yr production capacity. A sales license for the facility is also expected shortly, as a follow-up inspection related to the license was completed on May 24, 2018, following the initial inspection on March 16, 2018.

Heading into the impending recreational legalization, the Canadian cannabis space seems overcrowded and oversupplied. Companies that offer a differentiated growth strategy similar to 48North Cannabis would be at a competitive advantage in capturing a slice of this opportunity.

Shares of 48North Cannabis gain 10% to close at $1 on its second day of trading.

Disclosure: Neither the author nor his family own shares in the company mentioned above.

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