Investment Q&A

Q: Can you offer guidance on CannaRoyalty in light of the acquisition by CL? Would you recommend holding or selling at this point? How would you rate the transaction?
Thank you

Q: Thanks for your rapid reply to my question but I just have a quick follow up to the last line of your response which was: "Investors may also take some profits post closing, potentially causing an overhang and keeping buyers today on the wary side. "

If we are talking about post closing, then OH shareholders will have already received .8428 shares of CL for each OH share which would put them well ahead of where they are now based on the current disparity in prices between the two companies. Thus, rather than be wary, at this point they should be buying to take advantage of this disparity.

Thanks again.

Q: As can be seen, Cresco Labs is acquiring CannaRoyalty Corp. Can you provide any reasons why there is such a disparity between the price of OH and CL as we head towards completion of the takeover? As I write, CL is worth $15.65 yet OH trades at only $11.28. Based on the ratio of shares of CL they will receive, OH should be worth $13.19. If the deal was going to close in a year I might understand but it should be closing within a few weeks so the spread seems inordinately large.
Many thanks.

Q: While I realize that you've always been skeptical about the MJ sector as a whole, from an investment perspective, it might be time to take another look at CRZ in light of what has transpired in the past few months. It has recently acquired both 180 Smoke (Canada's premier vape store chain) and RVR Distribution (2017 revenue of US$25.3 million) which now gives it one of the dominant cannabis development platforms in California. This is significant because while there are currently 51 MJ stores in all of Canada, there are 450 in California. This likely explains why CRZ also had record Q2 revenue, accelerated the expiry date for its warrants (always a good sign) and boasts one of the best looking stock charts within the MJ sector.

Q: Hello Peter,
On Nov 23, 2017 Brian has asked about GoldMoney and in Dec 2017, Amy had asked about Mogo Finance. You had indicated that both were buys at the time and the stocks were high. What has changed so much that both companies have declined significantly 6 months later. Also, can you please explain the main differences between Cannabis Wheaton (now Auxly Cannabis), CannRoyalty, and Ianthus Capital Holdings as latter two continue to do well where as Cannabis Wheaton is in the dumps. Finally, i just wanted to comment that in addition to your expert advice, i do appreciate the comments by members and the type of questions asked as it provides insight into many companies. I find this site very useful in many respects. Thank you.

Q: Good Morning. Would like your opinion on these two corporations. Would you consider them as a possible buy. Thank You.