Capital Mining gains interest in medicinal cannabis industry
Published 30-MAR-2017 09:39 A.M.
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
The share price of Capital Mining (ASX: CMY) doubled in the first hour of trading on Wednesday morning after the company announced that an agreement had been reached with medicinal cannabis group Broken Coast Cannabis Limited (BCC), which involved a cash payment to CMY of C$250,000 and the rights to negotiate an investment in BCC.
It should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
As a backdrop, BCC is a leading, profitable Canadian medicinal cannabis producer and distributor headquartered in British Columbia, Canada. The company was incorporated in 2013 and has grown to become one of Canada’s leading medicinal cannabis producers and distributors.
BCC is licensed under Canada’s Controlled Drugs and Substances Act, and adheres to Canada’s Access to Cannabis for Medicinal Purposes regulations.
Because Capital Mining’s core business lies in the mining industry, the company is establishing a separate unlisted enterprise, Capital Cannabis. This will be a wholly-owned subsidiary of CMY, providing the company’s shareholders with exposure to the burgeoning medicinal cannabis distribution industry.
While this will initially be linked directly to the business of BCC, which at this stage remains difficult to quantify given the terms of Capital Cannabis’s investment in BCC are expected to be ratified in the coming 90 days, there is also the possibility that CMY shareholders could benefit from a separate listing of Capital Cannabis.
While it is early days in terms of progressing Capital Cannabis, CMY’s management has demonstrated its commitment to the business in appointing Cameron McDonald-Stuart as a Non-Executive Director.
He is highly credentialled and well respected in the industry, having been the founding chief operating officer and chief technical officer of Cann Operations, the first company to be awarded an Australian medicinal cannabis license.
McDonald Stuart was also a founding board member of the Australian Cannabis Industry Association, and runs cannabis consulting and technology company Medicabis.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.