After whats been one of the toughest weeks of the year, 48North Cannabis Corp (TSXV: NRTH) looks like it will be closing the week relatively flat relative to last weeks close after what should of been their week in the sun. The firm recently received its license to cultivate at its outdoor property, which was released Friday after hours by Health Canada and the company.
However, after shooting north on Tuesday following the long weekend, enthusiasm quickly dissipated from the equity as investors began selling the news of the license.
Investors selling the news include Canadian icon Guy Laliberte, co-founder of Cirque de Soleil, who was a pre-RTO investor in 48North Cannabis. At the time of the go public transaction, Laliberte, through the entity Groupe Lune Rouge, owned a smattering of shares in the company which included:
- 10,000,000 common shares (9,090,090 of which re believed to be at a price of $0.55, purchased in December 2016),
- 460,000 share purchase warrants with an exercise price of $0.65, expiring November 14, 2018,
- 9,090,909 share purchase warrants with an exercise price of $0.75, expiring December 2, 2020.
Although Laliberte held on to his initial shares throughout 2018, he refused to exercise his November warrants as a result of price weakness and let them expire in November. More recently, he exercised all outstanding warrants that he owned on May 1, 2019. He began offloading these on public markets May 14, disposing of 2.59 million shares over a six day trading period.
As of May 22, Laliberte is no longer marked as an insider by way of holding more than 10% of company stock, thus we no longer have eyes on his positioning within 48North Cannabis. Further weakness may indicate that he is continuing to exit his position within the equity, with his cost basis suggesting potential limits for where he would stop reducing his position.
48North Cannabis closed at $1.09, unchanged from the previous session with 1.98 million shares trading hands.
Information for this briefing was found via Sedar and 48North Cannabis Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.