A new international cannabis firm made its debut on the Canadian markets with the support of a multi-state operator (MSO) in the US.

Despite the current downturn affecting the marijuana sector, on Monday (November 18) Terrace Global (TSXV:TRCE) started trading, providing another option for investors to play the international cannabis market.


Michael Galego, a director with Terrace Global, told the Investing News Network (INN) the company has a vast pool of experience from its leadership team, who have played roles in cannabis companies that went on to get acquired by some of the largest names in Canadian cannabis.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Terrace Global originally planned to raise C$15 million as part of its public debut but ended up closing its deal at C$17 million, according to Galego. The funds will aid in the continued development of the company’s cannabis operations in Uruguay and Portugal as well as 100 acres of hemp cultivation in Spain.

“We asked ourselves where are the opportunities internationally where you can grow cheaply, where there’s a domestic market and where there’s ultimately the ability to export,” he said.

Following its trading debut, shares of Terrace Global were crushed during a period of volatility increased by doubts surrounding the industry with recent announcements such as HEXO’s (NYSE:HEXO,TSX:HEXO) improper growing discovery and Aurora Cannabis’ (NYSE:ACB,TSX:ACB) decision to halt two construction sites.

“The whole sector … people are pulling capital out of the sector generally … I think the market’s probably overreacting,” Galego said. “I think you see that in a number of companies in the sector but at the same time I understand the sentiment of retail shareholders.”

The company opened at a price of C$0.30 per share and closed on Monday valued at C$0.15. On Tuesday (November 19), the firm noticed another double-digit drop in value at the start of the trading session.

“The vast majority of our stock is held by long-term shareholders and I think you can’t really focus on day traders; it is what it is,” Galego said.

When asked about the reason to go public now given the current sentiment in the stock market, he said operating as a public firm in foreign jurisdictions is an advantage in the eyes of international governments.

Galego added the company having public stock opens the doors to a variety of merger and acquisition activity possibilities, which he indicated could come in Q1 or Q2 2020.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

MSO supports newcomer in international cannabis

While the market expected to see an escalation in the relationship between Canadian firms and US-based multi-state operators, particularly following the acquisition plan between Canopy Growth (NYSE:CGC,TSX:WEED) and Acreage Holdings (CSE:ACRG.U,OTCQX:ACRGF), those public ties have not yet spread as widely yet.

MariMed (OTCQX:MRMD), an MSO with a hemp business approach selling products in six states, is backing Terrace Global by way of a 6 percent ownership stake in the company.

“We’re lucky … that we have a strategic shareholder that is a US MSO,” said Galego. “That lends credibility to what we’re doing, our business plan and (MariMed is) also a great partner if we ever need advice and guidance.”

MariMed recently issued a revenue report for its Q3 2019 period, indicating an increase to US$11.22 million, while the company reached an operating income of US$1.04 million.

However, on November 13, MariMed filed a notification of late filing to the US Securities and Exchange Commission.

Past cannabis ventures experience directs strategy for Terrace Global

The management team of the company includes former executives with Tokyo Smoke, which was acquired by Canopy Growth, and MedReleaf and ICC Labs, which were both acquired by Aurora Cannabis.

Galego said the company’s shared experience offers a benefit to investors. When asked about the priorities a team with this much experience can settle on, he said understanding the regulatory landscape of foreign countries is key for Terrace Global.

The company holds operations in Uruguay, where it holds a 33.75 percent ownership stake in a recreational cannabis business carrying a greenhouse production facility, and in Portugal by way of a provisional license. Galego envisions the company selling and exporting bulk wholesale cannabis product.

According to Galego, Terrace Global wants to settle a deal to secure the remainder of the stake in the Uruguayan business in Q4 2019.

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: Acreage Holdings is a client of the Investing News Network. This article is not paid-for content

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

In the evolving rush of mergers and acquisitions (M&A) in the Canadian cannabis market, Canopy Growth (NASDAQ:CGC,TSX:WEED) announced it will acquire The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) in a deal worth approximately C$435 million.

Meanwhile, a cannabis operator in the US confirmed this week that it will receive a financial boost from a partner to solidify its position in the burgeoning Pennsylvania state market.

Keep reading... Show less

The Board of Directors of Aphria Unanimously Recommends Shareholders Vote “For” the Arrangement

Aphria to Host Special Meeting of Shareholders on Wednesday, April 14, 2021 to Approve Proposed Aphria-Tilray Business Combination

Keep reading... Show less

Love Hemp Group PLC (AQSE: LIFE) (OTCQB: WRHLF), one of the UK’s leading CBD and Hemp product suppliers, announces that as part of the equity fundraise announced yesterday, Antony Calamita and Andrew Male, Directors of the Company, subscribed for 285,714 Ordinary Shares and 1,428,571 Ordinary Shares respectively. The subscriptions are at a price of 3.5 pence per ordinary share for a total of £60,000. Following these subscriptions, Antony Calamita is now interested in 54,385,714 Ordinary Shares, representing 8.61% of the Company’s share capital as increased by the fundraising, and Andrew Male is now interested in 6,138,196 Ordinary Shares, representing 0.97% of the Company’s issued share capital as increased by the fundraising

Further, the timetable for receipt of applications under the Broker Option, which was also announced yesterday, has been extended until 5:00 pm 9 April 2021 to capture additional interest which was unable to be completed yesterday.

Keep reading... Show less

Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, would like to provide the following dial-in information for the Company’s upcoming Annual and Special Meeting (the “Meeting”) scheduled to be held at 11:00 a.m. Eastern Daylight Time on April 12, 2021. Shareholders and proxyholders may access the Meeting via teleconference by dialing 647-723-3984 or 1-866-365-4406 from Canada or the United States, then entering participation code “8487744” followed by the pound (“#”) sign.

In consideration of the COVID-19 pandemic and the recent restrictions imposed by the Ontario Provincial Government, shareholders and proxyholders will only be able to attend the Meeting via teleconference and will not be permitted to attend the Meeting in person at the address provided on the Notice of Annual and Special Meeting of Shareholders.

Keep reading... Show less

Gage Growth Corp. (“Gage” or the “Company”) (CSE:GAGE), a leading high-quality craft cannabis brand and operator in Michigan, announced today that it has signed an agreement with Blue River™ Extracts & Terpenes (“Blue River™”) to bring the brand’s award-winning solventless technology and other trademark branded products to the state’s medical patients and cannabis consumers. The Company will have exclusive rights to Blue River™’s premium product offerings in Michigan.

Keep reading... Show less