HEMP stock is trading in the green Friday. Why? Well, it’s a mixture of things. Part of it could be due to Hempco Food and Fiber (TSXV:HEMP) announcing yesterday that it entered into a loan agreement with Aurora Cannabis (TSX:ACB). On the other hand, it could be due to the HEMP Q2 2019 results that were posted on Wednesday.
Here’s the latest with Hempco Food and Fiber.
HEMP Stock Benefiting from Several Announcements
On Friday, April 26, HEMP stock is trading at $1.01 on the TSXV, putting it up 1.00% as of 1:18 PM EDT. It’s possible we can attribute this result to several recent announcements by the Vancouver-based company.
Aurora Cannabis Loan Agreement
Yesterday, Hempco announced that it secured a $4 million loan facility from Aurora Cannabis. According to News Wire, the loan is part of the transaction both companies agreed to in a binding letter agreement. We first heard of the binding letter on April 16, 2019.
Further, the loan is intended as a bridge loan. This means it will be used to finance the completion of HEMP’s processing facility in Alberta, which has dimensions of 56,000 square foot. One important thing to note is that Aurora Cannabis, under the terms of the agreement, can stop advances of loan proceeds at any time.
As significant as this is, it’s not the only piece of news Hempco Food announced this week. Which means it’s not the only piece of news that could have played a role in HEMP stock trading in the green Friday.
HEMP Q2 2019 Results
One day before Hempco announced the loan agreement, the cannabis company posted its second quarter results for 2019. The report had several highlights, from the acquisition by Aurora Cannabis to 104% Y-O-Y revenue growth. Hempco Food and Fiber also said its commercial strategy saw more traction in the second quarter, thanks to the development of new sales channels.
What do you think caused HEMP stock to trade in the green today? Was it because of the loan agreement with Aurora Cannabis, or was it due to the HEMP Q2 2019 results?
Let us know what you think in the comments below!
Featured image: DepositPhotos © Fotofabrika