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.

US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

“This strong cash position will also allow management to pursue strategic acquisitions and address potential working capital requirements,” McLeish wrote, according to Cantech Letter.

WeedMD was stuck in a business turnabout from Hiku Brands (CSE:HIKU), a company with which it held an arrangement to essentially merge both businesses.

As the deal continued to move forward, Canopy Growth (TSX:WEED; NYSE:CGC) entered the picture with an acquisition offer for Hiku.

“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.

Investor takeaway

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.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

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.

US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”), an innovative global cannabinoid company, today announced that Mike Gorenstein, Executive Chairman, is scheduled to speak on a panel at the Cowen 2020 Boston Cannabis Conference on Wednesday, December 2, 2020 at 9:20 a.m. EST.

For more information regarding the Cowen 2020 Boston Cannabis Conference please visit: https://www.cowen.com/conferences-and-events/3rd-annual-boston-cannabis-conference/

Keep reading... Show less

Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Aurora Cannabis Inc. (NYSE:ACB) between February 13, 2020 and September 4, 2020, inclusive (the “Class Period”), of the important December 1, 2020 lead plaintiff deadline in the securities class action. The lawsuit seeks to recover damages for Aurora investors under the federal securities laws

Keep reading... Show less

TerrAscend Corp. (“TerrAscend” or the “Company”) (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced Jason Ackerman Chief Executive Officer and Executive Chairman of TerrAscend, Keith Stauffer Chief Financial Officer, and Jason Wild Chairman, will participate in three upcoming conferences:

  • Cowen’s 3rd Annual Boston Cannabis Conference, a virtual event taking place November 30-December 2 , 2020. Jason Ackerman will participate in a panel, U.S. MSOs: The West, on November 30, 2020 at 10:25 a.m. ET . Management will also host one-on-one meetings with investors throughout the conference.
  • 2020 Cantor Fitzgerald Virtual Cannabis MSO Summit, a virtual event taking place on December 15-16, 2020 . Jason Ackerman is scheduled to participate in a fireside chat on December 16 th at 1:00 p.m. ET . To register for the fireside chat: Click Here
  • 23 rd Annual Needham Virtual Growth Conference, a virtual event taking place January 11-15, 2021 . Jason Ackerman is scheduled to participate in a fireside chat on January 14, 2021 at 2:45 p.m. ET . Management will also host one-on-one meetings with investors throughout the conference. To register for the fireside chat: Click Here

The Canadian Securities Exchange (“CSE”) has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Keep reading... Show less
  • Aurora strategically positioned within two of the largest legal cannabis markets outside of Canada
  • Agreement with Israeli leader Cantek provides access to Israel’s drugstore channel
  • Finished product is co-branded under Aurora and Cantek brands

NYSE | TSX: ACB

Aurora Cannabis Inc. (the “Company” or “Aurora”) (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today it has entered into a strategic Supply Agreement (the “Agreement”) with Cantek Holdings (“Cantek”), one of Israel’s leaders in the medical cannabis field.

Keep reading... Show less