Small-cap marijuana firm Wildflower Marijuana (CSE:SUN) is up 4.61% today on the news that the firm has secured a $720,000 CAD purchase order. Per-share prices closed at $1.59 CAD, bringing Wildflower's market cap to $96.7M.
While there is no information on who placed the order, the company said in a statement that the 'substantial' amount is for Wildflower Marijuana's line of 'King' branded products. It comes after the company - which is based in Vancouver, Canada - announced the acquisition of licenses in Los Angeles, California.
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CEO William MacLean said: "This purchase is indicative of the demand for the King product in the California market ... We anticipate continued demand as the adult use market expands and look forward to the launch of Wildflower products once these 16 licenses have been acquired."
Wildflower is predominantly a CBD-based company, which sets it apart from most marijuana firms whose products tend to contain THC. THC and CBD are both active components in cannabis, but while THC is responsible for the psychological effects - A.K.A the 'high' - CBD is associated with a wide range of health benefits. These include pain relief, treatment of inflammation and chemotherapy relief. It has even been shown to help cancer patients and is being tested as a medicine for people with schizophrenia.
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Wildflower's product portfolio includes a number of products containing CBD, including soap, vaporizer, and capsules.
Wildflower stand out in the cannabis market today, with almost every other firm in the red, according to data from Quotemedia. Industry giant Canopy Growth Corp. (TSE:WEED) was down -12.56% at the close, with other large-cap players Aurora (TSE:ACB) and Aphria (TSE:APH) down -11.03% and -10.58% respectively.
The cannabis market as a whole has been performing weakly since the start of 2018 when many companies peaked amid an industry investment frenzy. In positive news, however, a bill is being pushed by the head of the U.S. Senate Mitch McConnell which is expected to legalize the production of hemp across the US next week. The Hemp Farming Act 2018 will also allow hemp scientists to apply for federal research grants.
Featured image: Wildflowerus.com
