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CWEB listed on CSE. Trading date: August 30, 2018
https://globenewswire.com/news-release/2018/08/28/1557892/0/en/CSE-2018-0822-New-Listing-Charlotte-s-Web-Holdings-Inc-CWEB.html
"Don't sleep on CWB Holding IPO." It seems CVSI going to go parabolic.
Don’t Sleep on the CWB Holdings IPO
CWB Holdings could be one of the most successful cannabis IPOs of the year
Written by Jeff Siegel
Posted August 24, 2018 at 9:33AM
It was about three years ago when I recommended folks buy shares of Canopy Growth Corporation (TSX: WEED) for $1.60 a share.
Yesterday, the stock hit $55.92 a share.That’s a gain of 3,394%.
I’m not going to lie. That’s the biggest gain I’ve ever enjoyed in my more than two decades in the world of finance. And it’s only one of about a dozen other cannabis stocks I recommended many years ago – when they were still super cheap.
Of course, a lot has changed since then, and it seems that every couple of weeks there’s a new cannabis company going public.
Some will do well, and some won’t. That’s just the nature of the game.
But there’s a new cannabis company going public soon that I believe will be a home run.
The company is called CWB Holdings, and it’s one of the most important cannabis companies in the world. Here’s why …
Don’t Sleep on CWB Holdings (CSE: CWEB)
The Stanley brothers became major rock stars in the cannabis community after developing a strain of medical cannabis that helped a little girl named Charlotte Figi effectively battle a horrible form of epilepsy known as Dravet’s syndrome.
Now about a month ago we learned that the Stanley brothers were going public under Charlotte’s Web Holdings, Inc. (CWB Holdings). Make no mistake: I was very excited about this announcement. Then this morning, we learned that the company has boosted its IPO offering by 52 percent to $77 million.
Shares are now priced at C$7 a share, which is the top end of its previously announced range. Based on this share price, CWB Holdings will now have a valuation of about $500 million.
CWB Holdings will trade on the CSE under the symbol “CWEB.” Do NOT sleep on this one, as I believe it will be one of the most successful cannabis IPOs of the year.
CWEB has listed CVSI as competitor in their IPO prospectus with over 10% market share each. Watch Canadian investors bid up CWEB pps 3x from IPO price of $7. They would expect repeat performance of TLRY with IPO price $17, current pps $44. Once CWEB goes up, CVSI will go crazy following CWEB price pattern. Seasoned investors here know very well that once CVSI starts moving up you have to place bid over ask to get in. August 30 CWEB opens, rest will be history. Follow the trend, follow the money.
Compared to Charlotte web CVSI would be discounted a bit with CVSI being OTC stock but not too much since NASDAQ listing is already applied on July 23rd. With 4-6 weeks of processing, listing could come next week (5th week) or week of Sept 4th.
CVSI pps will get tied with Charlotte Web with being top 2 players in CBD space.
TLR* Y IPO at $17, opened 36% higher and now $45. With recent activity in MJ CBD Charlotte web may open much higher. CVSI will follow the suit.
Charlotte web's, the closing of the Offering on August 30, 2018
Charlotte’s Web Prices IPO, Raising C$100.1 Million.
From another message board by another investor.
For anyone new trying to justify buying CVSI, use this logic. Do you think it’ll go up to $7, $8, $9, $10? If yes, then regardless of whether or not it goes goes up or down on Monday, just buy in and don’t miss the train. I’ve never seen a stock move like this. Emerging market, no debt, record earnings, cash on hand (not through financing, but from profits), 100% transparency (go to their FB or Instagram page), #1 cbd oil brand in North America (branding and distribution), etc, etc. On top of that, more catalysts in the pipeline to further raise share price; farm bill in Sept, Nasdaq uplisting, Q3 earnings, DEA taking CBD off schedule 1 list (eliminates grey area, so that it can be sold in major retail chains like GNC, Vitamin Shop, CVS, Rite Aid, Walgreens, Walmart). Last quarter CVSI did 12.3 million in revenue, not far behind Canopy, which mind you, has a ton of debt, has a share price 20x 2020 projections (it’s basically priced for perfection, so if recreational marijuana doesn’t boom like everyone is hoping, it’ll tank). I always say to people, if marijuana went legal, how many of your friends would smoke it? I’m 40, and generously, I would say 15 people. Obviously as you look at younger generations, that number would absolutely be higher. But then, I ask how many people do you know take Advil, Aleve, Motrin, Etc out of 100? Most everyone would say 100 percent! What market has more upside and reach? Exactly. Healthy alternative that can be used as a balm, an oil, vaped, for anti-inflammatory, anti-seizure, sleep deprivation, pain relief, may help with concussions, and list goes on. Companies are putting in beauty products, in pet treats, protein bars, gummy candy, bars in major cities are infusing it in their cocktails. THIS IS A PERFECT STORM, is still undervalued, was flying under the radar and is now getting exposure to the masses. When people say that if you bought Netflix back in 2000 at $2.00 you would have made 29,000% today, who knew about Netflix at $2 except for the people trading it? Everyone found about it when it was $10-15 dollars. This is your chance, CVSI is a true UNICORN, a perfect storm, with an upside that is limitless. A once in a lifetime stock.
The other unique situation, temporary though, big companies cannot touch this sector and over take small participants like CVSI and Charlotte Web due to legal hurdles and social misinformation about MJ vs CBD space. Look at Corona beer maker pumping billions of dollars in CGC. I am sure they know bit more to put billions in fire by moving fast through another participant company.
IMHO, by next year CVSI will be juicy acquisition target, no price prediction though (depends on legal landscape, revenue, growth, media coverage and competition)
An OTC co making real money with real products and that too to the tune of multi millions, is a Unicorn itself. Lol.
You are right. I posted right after that - timing or taming CVSI is not the best idea. I was trying to add to my position which I did but could have done better but not timing for temporary top.
As far as CVSI true potential, I feel historical comparison with Hanson Naturals (MNST) is appropriate which made appreciation records. Again, energy drinks are everywhere, no barrier to entry, Red Bull first mover advantage brought the stock to where it is now.
All we need is patience, up listing, wave of industry news and legalization will take care of rest.
CVSI is a unicorn and better to hold than trade.
I don't think this beast can be timed or tamed. Lesson learned. Move aside GWPH. Here comes CVSI.
I agree and disagree in the sense that there will be euphoria and bump of 20-25% from prevailing price but won't be like institutions rushing to buy on first day. Usually they want traders to leave to establish stable floor which may be a week later.
With your knowledge of shorting, How do you check security lending rate to gauge the hard to borrow. What is typical lending rate, is 20% normal rate for such stocks. I am learning about short squeezes, not a short trader though.
Thanks you. Friday being tricky day to buy or sell, I am just being cautious especially with shorts forcing temporary drops like yesterday in the last 3 minutes from 5.88 to 5.61. Not huge but manipulation to be taken advantage of.
Thanks. Thoughts on short interest? With it's beast power and jump in shorts, do you think a short squeeze is imminent in next couple of weeks with NASDAQ application filing of July 23rd. It takes 4-6 weeks. I am thinking before Labor day weekend.
Your calls on intermediate tops and bottoms have been pretty good while you still being a long-term bullish on CVSI. Thank you for posting those. What's your thoughts on intermediate top and bottom. I am looking from the perspective of buying and don't want to be buying at the top. Thanks!
How are they going to fund the cost of new acquisition?
How are they going to fund the cost of new acquisition?
Source please . I couldn't find price or shares being offered.
IPO will give CVSI fresh boost and bring lot of media attention being closest competitor in terms of sales, products, employee count.
I think around 100K for this quarter with 50% quarter over growth typical of many CBD companies. # of stores where they are selling are very few.
What's your projection of revenues for VATE this quarter?
I always like your commentary on things as you see them, however, don't you think SIPC and VATE are more hype than substance. I think it may be very quick play if things play out. Reading Sleek's board, it looks more like desperation with non-stop minute by minute hope and pray of impending hemp mania. You have to agree, any mania is caused by whales who do not play very well known events such CA legalization, FDA approval of Epidiolex, similarly hemp legalization. Usually, some unsuspecting event becomes the excuse (constellation investment in canopy or for chuckles let's say a tweet about MJ/Hemp by public figure). The point is SIPC and VATE are so exposed by Sleek and board pumpers, I doubt anticipated explosion in price would really occur. What do you think?
MPXEF on the other hand is an undiscovered gem for sure.
Can a technical chart expert confirm if CVSI is forming a bull flag?
MPXEF - Isn't dilution through June 50 cents notes a concern here in short term? Thoughts?
October 11, 2017 the Corporation, through its wholly-owned subsidiary, CGX Life Sciences Inc., entered into a definitive purchase agreement effective November 30, 2017 (the “NV Purchase Agreement”) to acquire 99% of the membership units of GreenMart of Nevada NLV, LLC (“GreenMart NV”). On December 7, 2017, completed the acquisition of GreenMart NV (“the Acquisition of GreenMart NV”) by paying the purchase price of $19,966,253 (USD $15,492,127) was satisfied by the issuance of (i) a $12,243,600 (USD $9,500,000) non-interest bearing promissory note, payable in full on or before June 30, 2018; (ii) 14,103,732 common shares in the capital of the Corporation (the “MPX Shares”), priced at $0.50 valued at $7,051,866 (USD $5,471,653) at November 30, 2017; and (iii) 3,525,934 common share purchase warrants to acquire MPX Shares, priced at $0.1902 (USD $0.1476
Don't they have more promissory notes due already on June 30th at 0.50 a share? From disclosure
October 11, 2017 the Corporation, through its wholly-owned subsidiary, CGX Life Sciences Inc., entered into a definitive purchase agreement effective November 30, 2017 (the “NV Purchase Agreement”) to acquire 99% of the membership units of GreenMart of Nevada NLV, LLC (“GreenMart NV”). On December 7, 2017, completed the acquisition of GreenMart NV (“the Acquisition of GreenMart NV”) by paying the purchase price of $19,966,253 (USD $15,492,127) was satisfied by the issuance of (i) a $12,243,600 (USD $9,500,000) non-interest bearing promissory note, payable in full on or before June 30, 2018; (ii) 14,103,732 common shares in the capital of the Corporation (the “MPX Shares”), priced at $0.50 valued at $7,051,866 (USD $5,471,653) at November 30, 2017; and (iii) 3,525,934 common share purchase warrants to acquire MPX Shares, priced at $0.1902 (USD $0.1476) v
Usually your timing is pretty accurate, especially when you predicted the top day in advance. Keep up the good work. Thanks!
How would you compare VATE with cvsi. That one has big revenue but VATE can follow those footsteps. VATE CEO seems very transparent and serious about being full reporting company. Not sure how's VATE revenue shaping up. Right now its revenue is tiny to justify even the current valuation.
Thoughts
Any link to listen the recording? Thanks
Good consolidation at these prices. Seems the next push will take it above 55 easily. Float is locked-in by the believers who will not easily cash-out.
Sleek,
Your analysis of stocks and salami is definitely solid but don't you think SIPC execution of business has been poor so far. They haven't even figured out kegs vs bottles with no sign of going national. Beverage business is very capital intensive even in booming sector and success is not overnight in this business. Also, it has typical pump N dump cycles. The other salami ticker is definitely much solid with real products on shelves.
Wouldn't it be better to turn your attention and skills to other undiscovered gems rather than constant statements of hope of pump(no disrespect) on single event of Senate vote when materially the company is very weak.
Please note I am long SIPC and not bashing but urging you to channelize your skills to other stocks as well. Thanks
You mean full buyout offer by SMG?
"Wellcana will buy 15% of the newly-issued equity of GBSL for $3 million" Would appreciate if someone can translate it into price paid per share. My calculations based on 134 Million OS do not add up.
GW Pharma’s epilepsy drug is expected to receive FDA approval/decision by May-June-July time frame. This will set precedent and catalyst for companies like GBLX which have drugs in pipeline. GWPH approval being the first actual cannabis-formulated medication to receive FDA approval will have huge downstream effect on GBLX. This may push GBLX to more respectable levels both PPS wise as well as industry recognition.
Listening to podcast today where Poss referred to plans for Texas (hint: billionaire Moody from Texas invested in GBLX back in August), it seems increased authorized capital will be handy for expansion in Texas. It is widely known and unfavorable to use share as means of financing and is not optimum but traditional financing through banks and institutions will remain unavailable due to Federal laws. Until that time investors will be watchful of share count increase and how judiciously Poss uses it.
Watching trade patterns and PPS behavior on DJIA crash days, it seems to be in slow accumulation by smart money. Also, there is not much hype or presence on twitter or other investing circles which usually causes penny stock trader induced volatility, a good thing for price stability.
From risk-reward perspective, price stabilization around 60s and impending catalysts for MJ, GBLX may be a good holding for sometime.
IMHO. Not an investment advice.
This is a sleeper. With their new Aero Garden Farm and wifi enabled grow units, soon to be reported Q4 financials will be bonanza especially Amazon winter sales and premium placements in Bed Bath & Beyond. Seasonally, Q4 is their best quarter and stock tends to zoom in Feb-March. This year run may be extended with CA legalization and anticipated NJ legalization in April followed by MA and NY.
Agree, Scotts might acquire all of it since they already have 80% ownership.
Once MJ mania catches it, this will go crazy over 9$. 5M float.
Constellation brand putting $250 Million in Canopy is the key indicator that MJ infused drink industry is going to next explosive growth area and that's where SIPC is positioned.
About Constellation - "Constellation Fortune 500 has grown to become a significant player in the beverage alcohol industry with more than 100 brands in its portfolio; about 40 wineries, breweries and distilleries;"
Just from my own experience even before Sleek posted SIPC as SALAMI, it was very difficult to buy this in bulk without pushing the ask. It took me many days to build a position. It seems someone just wants to get out today and hence this Friday liquidation price. I think 0.025 is the floor and it is already too close to that. If you truly believe in MJ as industry and all ancillary products, today may be a good day to start a position in SIPC or hold what you have. IMHO.
Sleek
Your detailed guidance has been incredibly helpful and insightful. Can you please discuss if the outcome of 1/19 bill is not favorable, how should things pan out. Will it become perpetual struggle between fed and states and uncertainty for forseeable future?
Canada MJ market has been crashing with TSX threathening delisting of companies operating in USA since MJ being illegal at US Fed level.
Will appreciate your thoughts on this.
Wait till Feb-March for real joy. CA MJ is going to be boon for this little stock. This is a big exchange worthy stock with unique poroducts, consistent sales growth backed by SMG but stuck in OTC rubble.