The TSX Venture Exchange added 5.2 points to 1,007.16 Friday, ending the week up 17.41 points. Chuck Rifici's licensed medical marijuana company, Tweed Marijuana Inc. (TWD), began trading today after completing a reverse takeover of Larry Poirier's capital pool shell, LW Capital Pool Inc. Tweed was the most active stock on the TSX-V, closing at $2.59 on 10.94 million shares, nearly one-third of the company's float. Chi-X, an alternative trading system, halted trading of Tweed earlier today due to technical issues.
Yesterday, LW Capital rolled back its shares 1:5, leaving its shareholders with 1,452,000 shares; and then issued 33,618,108 postconsolidated shares to Tweed shareholders. LW Capital's IPO buyers, who paid 10 cents, or a postconsolidated 50 cents, have earned five times their investment on paper, based on today's close. This is the type of return that shell investors hope for, but for the past three and a half years have seldom seen. All considered, it was a fair transaction for them. For their patience, thanks to Mr. Poirier, they were not harshly rolled back, just 1:5. Everybody is a winner. Mr. Rifici, Tweed's CEO and also the CFO of the Liberal Party of Canada, is the No. 1 beneficiary of this deal. He paid $100,080 for his 7,774,053 shares, now valued at $20.13-million. There is good money in pot.
Yesterday, Tweed said it recently purchased more than 60 strains of medical marijuana seeds and plants from other licensed growers for an undisclosed price. It acquired the plants to meet demand in the short-term and also to increase its selection to over 80 strains in an effort to secure as many customers as possible. |
