Cannabis penny stocks are trading up and down early on the TSXV this morning. Aleafia Health Inc (TSXV:ALEF) is taking a nosedive, while 48North Cannabis Corp (TSXV:NRTH) is seeing monumental gains early on after its deal with Canopy Growth (TSX:WEED) (NYSE:CGC) was announced.
Today, we'll take a closer look at these two penny stocks and their latest movements.
48North Cannabis Corp
48North Cannabis is a cannabis company that makes products for the female health and wellness market in Canada. The cannabis penny stock operates out of Toronto, Ontario.
48North made some major announcements early this morning that has caused its stock to shoot up exponentially. First, the cannabis company announced that it has completed its acquisition of 2599708 Ontario Inc "Good & Green."
With this acquisition, 48North now has a second licensed producer—making it one of the largest low-cost producers of dried cannabis and cannabis oil in North America. In addition to those products, 48North also produces next-generation cannabis-infused products including beverages, edibles, cosmetics, and topicals.
In addition to the acquisition, the cannabis penny stock announced that it has completed a $3 million strategic financing agreement with Canopy Growth Corporation. Canopy Growth is arguably one of the largest and most-competitive cannabis companies in North America. As part of this agreement between the two companies, 48North will issue four million units to Canopy Growth, at $0.75 per unit. This deal will represent around 3.6% of the issued and outstanding shares of 48North.
"Both of today's announcements mark a significant transformation of 48North. This strategic acquisition of Good & Green, Private Placement and partnership with Canopy Growth work to strengthen and accelerate 48North's ability to deliver on its business plan," said Alison Gordon, Co-Chief Executive Officer at 48North. "48North is now well capitalized, fully in control of its supply chain, a truly vertically-integrated company, and well positioned to continue to develop next-generation cannabis products."
According to Yahoo Finance, NRTH is currently trading at $0.57 a share, up +$0.09 (+18.75%).
Aleafia Health Inc. is among a group of cannabis penny stocks that are falling this morning on the TSXV. Aleafia is headquartered in Concord, Ontario, and focuses its efforts on the medical cannabis industry in Canada. The cannabis company provides patients with medical consultation services to see if they meet the criteria to be prescribed medical cannabis for various ailments.
The latest news released by Aleafia was a week ago when it released its Q3 2018 earnings. Aleafia's revenue grew 36% from Q2 to Q3. It remains unknown at this time why the cannabis penny stock is tanking.
According to Yahoo Finance, ALEF shares are currently trading at $1.57 a share, down -$0.15 (-8.72%).
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