|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||1.7100 - 1.8290|
|52 Week Range||1.3350 - 6.3000|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Aphria Inc. stock fell 8% Wednesday to pace decliners in the cannabis sector, a day after it reported earnings for its fiscal first quarter that showed a profit that was mostly due to a change in its stock price and shift in its stake in another company.
MKM Partners analyst Bill Kirk initiated coverage of Canadian cannabis company The Flowr Corp. on Wednesday with a buy rating and said the company stands out from the crowd in Canada thanks to its focus on Europe. "We believe growing at an EU GMP certified facility in Portugal (expected before year-end) will put Flowr at an advantage to those trying to export from Canada to Europe, and even the growers in South America," Kirk wrote in a note to clients. Portugal offers a better climate for cannabis growing than Canada, and has a cheaper labor force and lower transportation costs, he wrote. The analyst estimates that Toronto-based Flowr can save 50% of costs by operating in Portugal and possibly even achieve parity with growers in Columbia. "This should give Flowr a distinct advantage to capture share in the EU, which presents an opportunity more than 10x the size of Canada. Within Canada, Flowr is focused on high-end product, which offers a non-commoditized niche opportunity," said Kirk. He assigned the stock a C$4.00 price target that about double its current trading level. Germany, France, Spain, the U.Kl and italy are likely bigger markets than Canada, and the overall European market will likely be at least 10 times the size of the current Canadian market. However, regulatory and legal barriers remain as Europe has been slow to develop a framework for cannabis. Flowr's U.S.-listed shares were up about 1% but have fallen 48% in 2019, while the ETFMG Alternative Harvest ETF has fallen 22% and the S&P 500 has gained 16%.
The next five days will still be full of news surrounding the cannabis space. We have compiled a list of main things that cannabis investors should be keeping an eye on this week. Ontario Lottery And New ...
Flowr (FLWPF) has been taking a beating lately, and now appears to be in oversold territory.Since it went public in September 2018, a lot of things worked against the company, including the stock market correction that happened in the fourth quarter.Consequently, its share price predictably got hammered. The positive is after that period of downward pressure, the company rebounded nicely, and I believe it has the potential to do so once again, even though its share priced has plummeted over 30 percent over the last month.Last quarter's performanceIn its latest earnings report Flowr showed that it had grown production by 8 percent over the previous quarter, coming in at 279.8 kilograms. In the reporting period it sold 211.2 kilograms. At face value it appears to be a negative performance when compared against prior sales, but the company prior sales of 406 kilograms in the fourth quarter included inventory buildup from previous quarters.As for sales per gram, Flowr was able to improve sequentially by increasing the amount from C$7.08 per gram in the fourth quarter to C$7.70 per gram in the first quarter.Once the smoke cleared in December the stock jumped from about $2.20 to $3.59 per share. That boost in share price came after the 14-day RSI dropped under 30.Negative catalystOne major thing has recently put downward pressure on the share price of Flowr, which was the withdrawing of its $94 million offering. Not all the news was bad though, as the company did announce it had made an agreement with underwriters led by GMP Securities to sell 10.61 units at $4.10 each, for a total of $43.5 million.The units represent one common of Flowr and one common share purchase warrant, according to the company.Each warrant includes the option of buying one common share of the company at a price of $5.00 per warrant in the 24 months after the closing of the offering. If exercised, it would bring the total raise to $50 million.The primary use of the funding will be to help finance the acquisition of Holigen Holdings Limited and build out production and cultivation facilities afterwards.August 8 is the expected closing date.Holigen Holdings Limited Flowr announced in June 2019 that it was going to acquire Holigen Holdings Limited. This has the potential to be a big play for international expansion, as well as a huge increase in its production capacity, which when fully operational, would match the approximate 500,000 kilograms in annual production that Canopy Growth (CGC) is moving toward.The planned facility named Aljustrel, is projected to be operational in the second half of 2019, and will be a 7 million square foot facility with the capacity to produce over 500,000 kilograms annually, as mentioned earlier.If it's able to execute and meet these guidelines, it would place Flowr only behind Aurora Cannabis is production capacity as the market stands today.Located in Portugal, it has the potential to produce among the lowest cost cannabis in the world, based upon climate and the the country's inexpensive workforce.It also provides access to the highly profitable cannabis market in the EU once it receives a license from Portugal. This would significantly bolster its international footprint.It is also building a network of partnerships with distributors serving Germany, Ireland, Poland and the UK. Once it starts producing some serious product it should have things in place to scale it fairly quickly.ConclusionI think Flowr is oversold at this time, based upon it dropping below a 14-day RSI of 30, and the market not seeming to be pricing in the future potential of Holigen Holdings Limited.With a probable short squeeze approaching and the negative news already priced in, it appears in the short term Flowr could be a solid trade.Further out, it has the potential to become among the top 3 cannabis producers in the world. The challenge there is once it achieves that distinction, assuming it executes on its strategy, what will the market in the EU in particular look like with Aurora Cannabis having such a strong position and lead in that market, as well as some smaller players.Flowr is a late comer to the cannabis market, but it has taken the right moves to give it a chance to grow significantly in the years ahead. Now what it has to do is prove it can generate enough revenue and eventually profits, in order to give it time to grow its business without burning its cash.If it can do so, it will reward long-term shareholders very well. It could do the same in the short-term for reasons already mentioned, but it isn't likely to sustainably hold once its share price enjoys a good bounce.See price targets and analyst ratings on TipRanks
Each unit will consist of one common share of the company and one common share purchase warrant, according to Flowr. In addition, each warrant carries the right to buy one common share in the 24 months following the closing of the offering at a price of $5 per warrant share. Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 — click here to learn more!
Canadian cannabis company Flowr Corp (OTC: FLWPF) will acquire Holigen Holdings Limited. The company recently announced an investment that would leave it with ownership of 19.8% of Holigen. Need more cannabis news?
The approval puts Flowr on track to become the latest cannabis company to have its common shares listed on the Nasdaq. When announcing its application submission in February, company co-CEO Vinay Tolia said a Nasdaq listing could make the company more accessible and attractive to a broader range of investors. Tolia shared similar sentiments in a Thursday press release announcing the company's Nasdaq approval.
Flowr Corp (OTC: FLWPF) said Monday that it plans to complete a private stock placement to fund activities that include including construction in Portugal and Australia. Among the investors participating in the non-brokered private placement are Chairman Steve Klein, who will participate through Core Flow Canada Holdings, Flowr CEO Vinay Tolia and several members of the company's board of directors, including new board member Don Duet. The Canadian cannabis company said it has appointed Thierry Elmaleh as head of capital markets.
Canadian cannabis products maker Flowr Corp. (TSXV: FLWR) (OTC: FLWPF) said that it hired celebrated Canadian chef Ryan Reed to develop edible cannabis products for the Flowr brand. Chef Reed is a past winner of Iron Chef and Chopped and Victoria's 2011 Chef of the Year. Vancouver, Canada-based SpeakEasy Cannabis Club Ltd. (CSE: EASY), a late-stage […]The post Cannabis Stock News Daily Roundup March 1 appeared first on Market Exclusive.
Jefferies is the latest Wall Street firm to initiate coverage in the cannabis space – but unlike many of its more bullish peers, its base-case outlook on the nascent industry is much more subdued.
Canadian cannabis producer The Flowr Corporation (OTC: FLWPF) announced Tuesday that it has submitted an application to list on the NASDAQ. With its papers filed, Flowr is now awaiting decisions from both the SEC and NASDAQ. "A NASDAQ listing has the potential to make Flowr's stock more accessible and attractive to a broader group of investors, which would be valuable to us as we build out the company,” Co-CEO Vinay Tolia told Benzinga.