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I'm happy that gap got filled ... Sets us up to potentially go higher after this consolidation
It's all relative ... Remember if they raise money that means the company is not going under .. Which is the reason that there are 36 million shares short ... Those shorters have no reason now to be short ... While there may be a pullback ... My guess is it will be met with buying or covering ... What if a strategic buys the financing ... What if it is a debt financing that isn't very dilutive .. What if the terms are higher than where the stock currently is ...Should be interesting
Company filed an s-3 registration statement .. That leaves open the possibility of a debt or equity raise. To all those shorts 36 million to be exact who are betting on the company to go under looks like that ain't happening. The negative is likely some dilution but with millions of oz of gold in the ground the company will not only survive but hopefully thrive.... There may be a pullback from this run but long term this is good news ... The question will be what type of financing ? Will a potential company who would want the asset make a bid before this financing gets done ? Should be interesting
Let's calm down ... This was just a little dead cat bounce from stupid levels ... Let's see if we ramp in next few days to the 1.50s range ... So much damage has been done on chart ..I would think we might be able to get a run to 2- 2-30 .. But gonna be hard pressed to really run without a major move In gold or a corporate plan ... I think 1-1.50 range for now unless something corporate comes then we could ramp if news is viewed favorably ... The shorts are just fuel in the fire
ANV closes virtually flat ... There has been zero bounce ... None ... No dead cats in sight...The devastation to this company is unreal... After being clocked from 40s ( yes 40 dollars per share) the stock was range bound from 3-6 and then range bound 2-4... With it now at .85c a move back to the 2-3 range is a homerun... Management must be scrambling trying to put a plan together. Either JV, buyout, royalty stream.. Or restructure debt or equity raise ... I think at 85c any of those move would be looked at favorably as the market trades it like the are going under ... Any thoughts by anyone on a potential hostile takeover
I don't know obviously shorting it at 3.5 was the wise move but with the stock at .86c .. Risk /reward??? To me is to the upside ... If there is a bit of short covering and some bottom fishing and heaven forbid any alliance/ jv or good news this could rocket back pretty fast ( how high is another question ... )
One would think .. But then again I thought we would bounce off 1.20
Crazy prices indeed... I am long the stock and just added a boatload of long dated calls. While the picture isn't rainbows for allied the stock is trading as if there is zero inherent asset value . Yes there is debt and yes gold prices need to be higher for the production to be worthwhile . At these price points ( and by that I mean 80c, 90c or 1 buck or even 60c) there will be some vulture who would look to take this over ... Take a look at Waterton Global they are private and have been a buyer of properties and on the hunt for assets in nevada ... I don't think a buyout would be best long term for shareholders but it sure would put some angst in the shorts and make make them a bit uneasy .... I wouldn't be surprised for a sizable dead cat bounce sterioded by some short covering ... But then again I have been wrong since 2's ... My gut is telling me we have seen margin calls as under 2 bucks the stock becomes un-marginable ... And tax loss selling and the puke out factor ... At these levels risk reward seems quite high for longs as opposed to shorts ... Just a longs opinion
Alias is back ... Only when CANN is moving up and he is hurting ... This report is crap it is not by any real firm it is backed by smallcap st whoever they are do your due diligence don't rely on this alias guy
Price movement is a guessing game... The industry is hot.. And CANN looks to be a leader now that they secured 30 mil . There seems to be too much money chasing too few companies. The shares out on this is about 15 mil with a tiny tiny float... If a hedge fund wants to buy $20 or $30 mil dollar position in the market they potentially can run this a lot higher ... Now imagine how many hedge funds there are out there ... And what you mention about OTC is relevant too as if this Company ever up lists to Nasdaq there is a massive amount of funds and mutual funds that could jump in that can't or won't buy OTC ..the volatility will likely be here for a while
The last time CANN was shorted and dropped from 23 to 11 ... We know how that ended up for the shorts ... Well now CANN ran from 30s -64 and got hammered back to 30s ... Do we see Dejavu all over again!! Time will tell
CITRON STUFF IS A LIE!! This guy USeralias1 is speading rumors...Go on Citrons site nothing on CANN. even if he did come out with a piece in the future (whcih i doubt) he is just like Sykes makes money bashing a stock...MDBX up to 31 from 26 when he bashed that too
A drawndown today would be at $34.3!!! IF CANN draws down on the $22.5 million line they have with FULL it looks like the price FULL would pay for its shares of CANN is $34.3... look at the trailing 10 day average and add 10% . Go read the 8k...If CANN closes anywhere around these levels or higher the average that FULL will pay for shares on Monday will go up...
The BS shorters are back ...
A. Spreading rumors about citron and left .... There has been zero report by citron!!! Don't let these scammers and shorters ( who are probably short and trying to scare the stock down) influence you
B. the cnbc piece was on the whole industry and CANN chart was put up and they were talking about canvest as well as others ... It was an industry piece
It is so clear there are people who are short and in massive pain and there only hope is to bash the stock
I have never said this was fairly valued or overvalued or undervalued but these jokers on this board are so transparent when they spread false rumors
REMEMBER. CANN HAS A 30 million dollar line from FULL CIRCLE CAPITAL. Former hedge fund mangers and Goldman Sachs MANAGING DIRECTOR...one would think they did there due diligence
You are a basher I see no where about citron and you are spreading rumors ... Even if he did say anything which he has not... Who would you rather be on side with a scammer like him or full circle capital whose ceo was a Managing Director of Goldman Sachs who oversaw 60 BILLION in assets...
I find it funny the alias guys come this board and spread all sorts of rumors ... ( it's one thing to say you think it's overvalued or whatever) Remember Sykes ... His info was bs ... As for citron I have seen nothing ... Just shorts trying to scare people ... How did Sykes shorts do..
I usually don't talk about price and valuation because I don't think anyone knows where or how high or low this could or should go .. With that said how many REAL cannabis companies are in the public markets ... A handful ... How many institutions are there out there mutual funds, hedge funds or high net worth who would like to invest in the space ... My guess is that there are TONS of funds dying to get in with HUGE dollar amounts to deploy and they are looking for legitimate companies to invest in ...
I dont know what the price of FULL or CANN will do. If CANN draws on the 22.5 million there dilution is minimal compared to what it would have been months ago(read that it is good for existing shareholders)for example they would be issuing roughly 700,000 shares for 22.5 million (thats based on todays price)
CANN is a reporting company and the terms of the FULL deal are in the 8k
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9725934
The terms according to the 8k and I would tell you to read it. FULL gave CANN a securitized line of 30 million . The first 7.5 million at $5 per share the balance 22.5 million can be drawn on by CANN to buy properties at 110% of the trailing 10 day avg price of CANN. So if you take the closing price for the past 10 days and divide by 10 and multiple by 110% you get around 32 ... If they draw down on it .. If the stock closes higher the price keeps going higher and less dilution for the capital
If FULL line of 22.5 million is drawn upon based upon the 8k of the terms of the agreement 110 % of trailing 10 day avg they would invest shares at close to $32 ... Each day the stock closes up their share price goes up ... Once CANN deploys the FULL capital they will be investors at those prices...
Shorts are getting creamed and spreading any kind of rumor ... First off I saw nothing from citron.. Even if he did come out he is a tool for short sellers ...as for those shares at .01 look at the filings I think those are the Managment shares for merging company before CANN was CANN .. Again looks like more scare tactics
Yes there are .. But the float is still tiny and the institutional interest is huge for good real cannabis companies ... .. You find me 3 or let alone 1 cannabis public company with access to capital like CANN has and a soon to be balance sheet if those warrants exercise that has the level of cash it would have.. Remember there are not that many public cannabis plays that are REAL... Low supply and huge demand ... Basic economics
At $37 ... If CANN draws on the 22.5 million ..FULL would effectively be investing at $27 dollars per share( 110% of the trailing 10 day close) . Each day the stock stays in the 30s or goes higher the cost of that capital becomes cheaper and less dilutive. If CANN draws down soon that could theoretically put a psychological floor on the stock of $27 or higher...
Valuation based Fundamentals don't look back but forward. Now I am not saying CANN in undervalued or overvalued. You need not look at the past filings 10k or 10q as that does you no good as it doesn't have the latest financing with Full Circle or what the company potentially does in the coming months. Even if it were overvalued fundamentally right now..what's to say it can't get even more overvalued by a factor of 5 or 10!!. As for your comment that there will run out of money wanting to invest in the space and then it will plummet...Think how many mutual funds; hedge funds ect want to get into this space(not to mention individual) investors...billions of dollars they invest ...now we are not even talking about the potential for non domestic funds worldwide...there is a very healthy capital pool looking for investments and there are a handful of real companies to be able to invest in. basic Supply and demand. So could this get crazy (or as you think crazier) my guess is yes
IMHO the ability to buy at those levels you wish are gone. As for any of this supposed CNBC gaffe..i don't buy it... they were talking about the whole sector and mentioned several stocks they put CANN up on the screen while talking about Canvest... big deal. If it were a mistaken gaffe CANN would have sold off right after.not continued to go higher and break 52 week highs... There are and still probably some trapped shorts who are hurting big time. If you look at how many funds and money managers want to get into the space and how much money can flood the sector there are not enough legit companies to meet that demand...If CANN starts announcing deals and draws down on that capital at 22, 25 or 30 per share the days of the teens will likely be behind us for good. I am not saying there are not ebbs and flows but look at CANV that was in 16 in December ..it is 150 now..yes 150.
As for Valuation that is difficult but this may be fair valued , overvalued or even UNDERVALUED...Lets just realize that there are Billions of dollars looking to get into this cannabis space thru hedgefunds and very few or legit companies to invest in. The world wants to get into the sector. There are plenty of shorts in this that are hurting big time and are getting squeezed...as for CANN remember FULLs investment of 22.5 million is based on 100% of the trailing 10 day avg...so if they draw down now they are paying over $22 plus per share and maybe much higher ( they are instiutional money)!!! and FULL dosnt think they have enough to fund CANN per their statements. As for who is behind FULL see below the CEO and his credentials. Former Huge Hedgefund manager and Goldman Sachs Managing Director.. So what is the current price worth ...if CANN buys over 30 million worth of facilities and is earning money and will upsell all these facilities on consulting and nutritional products....If a year out hypothetically CANN has 100 million in cannabis properties is the current valuation cheap? where else can you invest in this space with such AAA partners as FULL...This is similar to the prohabition being lifited and thats probably why FULL is so involved
GREGG J. FELTON
Gregg J. Felton is our Co-Chief Executive Officer and President and is primarily responsible for overall investment strategies and portfolio management. Mr. Felton is also a Managing Member and Chief Investment Officer of Full Circle Advisors and a Managing Member of Full Circle Service Company. Mr. Felton joined Full Circle Capital in November, 2013. Prior to joining Full Circle Capital, from 2006 to 2013, Mr. Felton was a Partner and Managing Director of Goldman Sachs and the Founder and Chief Investment Officer of Liberty Harbor, Goldman Sachs Asset Management’s credit alternatives platform. He oversaw various investment vehicles, including hedge funds, mutual funds and institutional managed accounts and facilitated the launch of Goldman Sachs’ business development company, Goldman Sachs BDC. From 2009 to 2010, Mr. Felton was Head of Credit for Goldman Sachs Asset Management, overseeing approximately $60 billion in assets. Prior to joining Goldman Sachs, Mr. Felton was a senior portfolio manager at Amaranth Advisors, a multi-strategy hedge fund located in Greenwich, Connecticut. He led Amaranth’s global corporate credit investment team from 2000 to 2006.[color=red][/color] Prior thereto, Mr. Felton was a Vice President at Chase Manhattan Bank, where he served as a portfolio manager and senior analyst for Chase’s Special Situations Fund. Mr. Felton began his career in the High Yield Finance Department of Chase’s Global Investment Bank. In 2013, Mr. Felton partnered with an investment management firm to form Altus Power America, an investment vehicle that focuses on solar power generation assets. In addition, Mr. Felton serves as a Director of Rye Country Day School. Mr. Felton’s broad experience managing investment vehicles and funds provides the Board of Directors with industry expertise and a valuable perspective on a variety of credit transactions. Education—B.A. Tufts University, 1992; J.D. Georgetown University Law Center, 1996; M.B.A. Georgetown University School of Business, 1996.
One last item .... the article talks of the investment of 7.5 million into CANN at $5 ..but the lionshare $22.5 Million would go in at 110% of the trailing 10 day avg price of CANN. Ie: today around $23 dollars!! (and theoretically even higher than that if the stock stays here or goes higher near term!!)
CANN according to this article has future biz of WAY more than 30 million!!!!
QUOTE FROM ARTICLE BELOW
“We don’t want to just be a single source of capital (to Advanced Cannabis), but what we want to be is a long term source of capital,” he said. “We’ve got a pipeline of opportunity with just this one company, which far exceeds our balance sheet. And we will bring in partners to support that growth over time.
What FULL looks to be saying is they are too small to fund all the business of CANN!!!
Remember FULL CEO is a former Goldman Sachs Managing Director who oversaw billions!!
WOW WOW!!!
PIPEs for Smoking Pot (Stocks)
By: JOE GOSE | February 18, 2014 | Leave a Comment
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Medbox machine
The smoke furling off of joints in a growing number of states and the federal government’s increasingly laissez faireposture concerning pot’s illegality are juicing momentum for a crop of issuers looking to take advantage of the budding marijuana industry.
Despite unease about ex-convicts involved in some companies, the undeniable capacity for rampant fraud, and federal government’s ultimate reaction – under federal law, marijuana use for any purpose is still illegal – publicly traded marijuana issuers have begun to find an audience among investors.
Eight companies linked to the marijuana trade have raised $31.6 million in nine equity private placements since the beginning of 2013, according to PlacementTracker, a division of Sagient Research.
Over the same period, Seattle-based plant extract supplier Plandai Biotechnology (PLPL) and Irvine, Calif.-based indoor agriculture equipment supplier Terra Tech Corp. (TRTC) agreed to equity lines with potential drawdowns of $15.3 million and $5 million, respectively. Lincoln Park Capital and Magna Group Capital Management are investors in those deals.
The issuers were cross-referenced from a list of 40 marijuana stocks assembled by Houston-based 420 Investor. The firms are generating revenues from the pot trade – or have the potential to – and range from those with a dedicated business plan to serve the sector to a more tangential link. Most are penny stocks, and all trade over the counter.
The list is likely to keep growing in the coming months with shell companies and others sprouting on a seemingly daily and “ridiculous” basis, says Alan Brochstein, an analyst and founder of 420 Investor.
The performance of Brochstein’s 420 Investor Cannabis Stock index appears just as ridiculous. The index, which tracks 20 pot-related stocks, soared 328% in January. It has since cooled, rising only 15% through for the month of Feb. as of the market close on February 14.
The spike in share prices in January coincided with the media’s onslaught of coverage of the first recreational sales in Colorado. It was also sufficient enough to prompt the Financial Industry Regulatory Authority to freshen up and re-issue a marijuana stock alert that it had originally released last summer.
FINRA reiterated its warning about the potential for fraud and the risks of investing in thinly traded pot-oriented companies “about which little is known.” “Regardless of industry or sector, any so-called ‘hot’ stock can burn your portfolio,” it added.
On Friday, however, the Obama Administration provided guidelines to banks in states that have legalized marijuana. The move was intended to make it easier for cannabis businesses to access financial services. But it also created more confidence among would-be buyers of pot stocks, as shares of some of the industry’s higher-profile companies soared in the last few trading hours following the administration’s decree.
Among others, the stock of medical marijuana vending machine supplier Medbox (MDBX) skyrocketed 26% to $31.75 a share (still below its $36 share price at the end of January); shares of Medbox vending machine maker AVT (AVTC) climbed more than 15% to $3.90 (the same price at the end of January); and shares of dispensary buyer and lessor Zoned Properties (ZDPY) rose 12% to $4.65 (up 75% over its end-of-January price).
Still, Brochstein remains wary of the eye-popping performance, and at this stage he largely considers the field a playground for traders rather than investors. Certainly anyone taking a scattershot investment approach is most likely, in the immortal words of assistant groundskeeper Carl Spackler from the movie Caddyshack, “stoned to the bejeezus belt.”
“Out of just the 40 companies I’ve been tracking, I think 10 are total scams, 10 are real legitimate and the remaining 20 are – who knows?” Brochstein said. “For some, it’s like the ethanol or biofuel plan didn’t work, so now let’s try marijuana.”
Ground Strategy
Growth capital investors so far appear to be taking a measured approach – making small investments or committing a bulk of capital, but divvying it out in tranches.
Rye Brook, N.Y.-based business development company Full Circle Capital Corp. (FULL) in January raised $11.8 million in a public offering, selling more than 1.6 million shares for $7.13 each. It then turned around and reached a definitive agreement to invest as much as $30 million in Advanced Cannabis Solutions (CANN), a Colorado Springs-based company, through a convertible debt private placement.
Formerly known as Promap Corp., Advanced Cannabis plans to buy marijuana greenhouse facilities in Colorado and lease them back to operators, who heretofore have struggled to secure financing. Advanced Cannabis also considers customized plant nutrient lines as well as compliance and new-license consulting as future business opportunities.
Speaking at Full Circle’s quarterly earnings conference call on Feb. 12, John Stuart, the BDC’s co-CEO and chairman, noted that capital providers were still largely absent in the market, a dynamic that suggests uncertainty over long-term federal policy has trumped signs of obvious growth potential.
In addition to Colorado, recreational sales in Washington are expected to begin this spring or early summer. Twenty states and Washington, D.C., allow the use of medical marijuana, and 11 states allow medical marijuana dispensaries. Throw a dart at a map and it will likely hit a state where legislative efforts aimed at some type of legalization or other reforms are underway, including Wisconsin, Oklahoma, Alaska, Missouri and Rhode Island, according to the marijuana policy organization NORML.
“The cannabis space is certainly becoming very much more acceptable, and many, many states . . . are legalizing the sale (of it), and so it’s a huge market opportunity in terms of growth,” Stuart said. “From our perspective, we were focused on what the right way to invest in the market is, by virtue of the fact that there were a number of companies coming and looking for capital.”
Full Circle’s deal with Advanced Cannabis calls for it to buy six-year convertible senior secured notes and make an initial $7.5 million investment in the company. (The issuer previously had raised $530,000 million in a Rule 506(b) Regulation D sale to retail investors facilitated by Denver-based broker Spencer Edwards.)
At least 95% of the proceeds in the placement must go toward the purchase of properties, and Full Circle will receive a first lien mortgage on the real estate portfolio. The debt features an interest rate of 12% and a conversion price of $5, which represented a 73% discount to Advanced Cannabis’ share price of $18.40 at announcement.
Full Circle also received 1 million three-year warrants with an exercise price of $5.50 a share. What’s more, the BDC has the right of first refusal to participate in future raises over the next few years. The firm anticipates that it will sell off some of the deal to other participants; it already has received inquiries, Stuart added.
“We don’t want to just be a single source of capital (to Advanced Cannabis), but what we want to be is a long term source of capital,” he said. “We’ve got a pipeline of opportunity with just this one company, which far exceeds our balance sheet. And we will bring in partners to support that growth over time.
On Feb. 12, Advanced Cannabis filed a registration statement to sell some 2.4 million shares held by 93 investors. The company’s shares spiked by $3.83 on Feb. 14 to $17.33 a share compared with $1.60 on Sept. 30. Most of the gain occurred in the few hours following the administration’s release of bank guidelines.
Green Shoots and Joint Ventures
Other reefer-oriented companies that have hit the PIPE market include Las Vegas-based CannaVest (CANV), a supplier of cannabis extract to the nutriceuticals industry. It raised $1.2 million at $1 a share from unknown investors in November (shares are now trading around $66).
Vancouver-based Enertopia (ENRT), which among other projects is pursing a joint venture to grow medical marijuana in Canada, raised $1.7 million in a common stock in January and February. The shares were sold at 64% discount to the announcement price of 28 cents a share. It also issued two-year warrants for 8.6 million shares with a conversion price of 15 cents a share. Enertopia’s shares were recently trading around 36 cents.
Meanwhile, Terra Tech has been the busiest issuer in the marijuana business over the last year. It is a provider of indoor growing technologies through its GrowOp subsidiary that is competing for permits to operate cannabis businesses in Nevada. In addition to its $5 million equity line agreement that it entered into with Magna Group, for example, Terra Tech has raised close to $7.8 million in two convertible debt deals.
Terra Tech reached a definitive agreement for the bulk of the convertible debt funding in early February in a $6.5 million deal withDominion Capital. The financing is broken into 12 tranches over as many months – the first tranche, $800,000, funded in early February.
The promissory notes have an 18-month term and feature an effective interest rate of 16%. The conversion price of a little less than 31 cents a share represented a discount of 42% when the deal was announced. Dominion Capital also received four-year warrants convertible to roughly 1.4 million shares for an exercise price of nearly 31 cents.Aegis Capital Corp. facilitated the deal.
While the astronomical potential for future PIPE financings stemming from the marijuana industry could provide quite a windfall to hedge funds, placement agents and other market participants, it may take several months before the risks are clearly delineated.
That’s particularly the case as issuers get closer to the actual growing, refining and selling of the plant. While fears now center on potentially facing a federal drug or money laundering charge, however, there’s another threat lurking on Tobacco Road, Brochstein notes.
“I don’t know where this is headed, but the companies are prepared for things to change,” said Brochstein, referring to industry scuttlebutt about accommodating federal government policy changes in the works. “But if the federal government were to come out tomorrow and say, ‘Phillip Morris, do what you want,’ then that’s going to be bad for a lot of these companies.”
Incredible .. Every day that CANN closes higher.... the lower closing price of teens is replaced by a day in the high 20s or 30s ... Why this is important is when CANN uses FULL money (17.5 million is available per 8k ) the company cost is 110 percent of the last 10 trading days ... So effectively they are like doing a placement with FULL at well over 20 dollars per share ( this IMHO puts a floor in CANN) .. This is why probably CANN moves SO RAPIDLY and FULL not as much
If CANN DRAWS DOWN ON THE FULL CIRCLE LINE IT WOULD EQUATE TO APPROX $21 per share financing of up to 22.5 million dollars . Based upon the agreement in the 8k they can use the capital for acquisitions and the price is based on the trailing 10 day avg at 110 percent. That would mean dilution today of just about 1 million shares for the 22.5 million if they deploy it today(... If the company waits and stock stays here or goes up the financing price for FULL will go up to 25 plus per share... ) I would think if they draw down and make an acquisition it puts a floor on how low this could theoretically go...
Not true about after hours .. There was a trade that was posted by a market maker from likely earlier in the day of 1144 shares at 22.92... Don't spread false rumors
That language is boilerplate and it is actually outdated as they secured 30 million in financing. No one talk about the fact that they have not drawn down on the 22.5 million financing and when they do it is at 110 percent to market in prices . So if they draw down now they would effectually do a financing over 17 bucks per share
I have my eye in $14.70- $15 .. Looks like if we break there we could potentially see a run higher to the old highs
I did Post the other day that you should watch for the washout and reversal in the same day..lets see if we hold today the upside. I would look at a break above $15 for a real reversal IMHO...
I have stated before there will be a day when the stock drops and reverses and ends up on the day and the down trend will be broken ..is today the day... we shall see ..but the volatility creates opportunities
IMHO...I dont know when it will or if it will but it looks like at some point there will be a reversal day on CANN...
What i mean is the stock opens down a buck or a buck and a half and rallies to up on the day. I think if that happens the upward trend could be in motion. and a consolidation phase in the rear view mirror...Just thinking outloud here
Ok now onto the self promoter Sykes. Boy oh boy are you full of yourself. Yes you do make some good calls and im sure you make some bad ones..or are you ALWAYS right.
Your facts as you quote them are misleading and had you properly read the filings you would see that management owns those shares for putting the business into the public vehicle(or maybe they should work for free) they received the equity. This company is a real company with a real business plan and real sophisticated management behind it and now real sophisticated investors who id their homework (unlike you who make crap up or spin a story). for you to scream the crap which is mostly false and try and scare people so you can scalp a few dollars is wrong. if you are so sure this is a bad company why are you not shorting more here. I would likely guess you covered already.
Peter your are only half correct. They paid $5 for 7.5 million and will pay 110 percent of the price when the company draws down on the $22.5 million....so The price they are paying could be significantly higher..they also received warrants at $5. the price at a discount to market for such a reputable fund is the norm and the price of the 22.5 million is great as it looks to be potentially significantly smaller dilution