Anyone looking at Cannsouth? They plan to list on the NZX mid 2019.
It looks to be the industry with big growth potential.
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Anyone looking at Cannsouth? They plan to list on the NZX mid 2019.
It looks to be the industry with big growth potential.
As was reported in October last. Any further news?
https://www.stuff.co.nz/business/108...listing-on-nzx
Assuming the law is passed allowing people to poison me with 2nd hand psychotropic smoke... and i think it will... these should be worth more immediately after the law passing, due to sentiment.
However, these companies are not well understood by investors, and businesses in this sector are often badly run in my experience (who'd have thought!). Additionally, anything to do with medical research carries risk (i.e. it may transpire after some completely unbiased research that a joint a day keeps the doctor away, but only a particular strain that isn't stocked by the cannabis company you invested in - sorry. Or even that it's not accepted by mainstream doctors - look at nzx.peb).
Also, I expect these to be overpriced shares because of popularity from folk that don't know how to do a valuation but think that is a good investment and place a bid at the market price, whatever it is.
I imagine they'll end up with not much institutional investment in the very long term because of this.
On a side note: I just think it's great when the govt ask the public for the answer to policy questions that require scientific knowledge and research that Joe Bloggs couldn't possibly be able to answer, but has a poorly founded and strong opinion about (fluoride). It's even better when they ask the public to make decisions on whether or not to do something without informing them how it will be done (brexit). And great to know that all of the above happens because someone wants to get ahead politically, at any cost (Jacinda and cannabis), and that the system allows this (mmp coalitions). I already love that as a non smoker, when my neighbor smokes, he kindly shares that with me every time i leave my windows open. I can't wait to get into something as healthy as cannabis is going to be for me.
Well, that seems to cover everything! No, I won't be investing either.
;)
I think we're such a long way behind Aus and Canada on this that it's unlikely that any NZ company will make much headway.
https://www.stuff.co.nz/business/108...listing-on-nzx
Freudian slip or subliminal programming?
"Cannasouth is likely to benefit from the enthusiasm surrounding fund raising for such ventures, and the backing of former Federated Farmers chief executive, Conor English, who will soon joint the board."
Podcast from Darcy Ungaro with guests Mark Lucas and Nic Foreman of Cannasouth. This was released on 21 Jan 21019 but I think it was recorded last year.
nz is way behind countries like canada , australia in cannabis research , even the us has just passed the farm bill legally allowing hemp production. i think alot of companies in nz will just be jumping on the band wagon hoping to make a quick buck
i favour a legalised pot industry run , taxed and dispensed by the govt myself. growers can sell to the govt and private companies are left to make money from the medical side of things.
This is quite an interesting article,seems some of the interested companies might not be up to scratch management wise,with one particular company being "perceived as not operating in the best interest of shareholders"
https://www.fool.com/investing/2018/...-lawsuits.aspx
Are we going to have more problems in the future....
https://www.nhs.uk/live-well/healthy...bis-the-facts/
Yes i like this set up too.
And like most things,used in moderation is just another recreational, creative pastime unlike Tobacco which insanely is legal still.
A problem is you can go to work the next day after a heavy drinking session but THC stays in your fatty tissue for some time long after the "high" has gone so how do you regulate say a bus driver who smoked a joint or vaporised a small bud the night before to relax after a long intense day at work.? Maybe they will get better testing which can indicate how recently you were partaking.
Cannabis Smoking Associated With Higher Sperm Count, Study Finds
https://www.bloomberg.com/news/articles/2019-02-06/cannabis-smoking-associated-with-higher-sperm-count-study-finds?srnd=premium-asia
It’s not necessary to be an expert on fluoride to have an informed opinion because experts write articles and books as well as do NZ public lecture tours to educate the public. There is also wealth of information on the internet for those who wish to be more knowledgeable. Most of those speaking out against fluoride are informed and concerned because fluoride is a highly toxic chemical and it has detrimental effects on some people’s health.
https://fluoridefree.org.nz/about/
It's not necessary to be an expert to have an opinion, and its not necessary to be an expert to vote. This is my problem; not whether fluoride is good or bad.
Its a scientific matter, average joe (including myself) doesnt have access or the time to investigate sources of data, backgrounds of funding, full detailed reports rather than scientific journalism (which is usually inaccurate), and doesnt have the awareness or correct approach of how to make these decisions (ie its bad for you but also good for you, x people may experience problems but y people get benefits. decisons on vaccines are done this way - 3 people will die but 4million wont get xxx disease).
I too have an opinion on fluoride (which has a 50% chance to be wrong), but think the public should only be engaged when a matter of pure opinion/ desire is involved, and one largely without an ethical challenge if possible. People shouldnt be voting on which science they believe. If thats unclear, commission more research. If science was based on polls, marketing and involved the average joe (who is usually an idiot), e=mc2 could be e=mc3
Interesting although inconclusive read, The weed companies will be keen to add another "benefit" and reason to legalise it.Fine by me.
He said: "As the authors point out, men with higher sperm concentrations are likely to have more testosterone in their bodies and thus may be more likely to smoke marijuana because simply they are willing to take more risks.
"In conclusion, I am not convinced that this paper moves us any further forward in this debate.
"Moreover, nor does it give support to any apparent fertility benefits of smoking marijuana.
"In my opinion, this should be avoided at all costs in any couples trying to start a family."
I tend to agree, what commercial advantage would any of these companies have over the incumbant large producers? I feel is going to be another hyped ag industry which will leave a small amount of people in the $$$ (mostly taken from investors) and a whole lot burned.
As an aside, there is a few farmers in South Canterbury looking into incorporating hemp as a rotation crop. NZyarn have got the gear on order to process and spin the fibre
I think Hikurangi may have already done that bull down the coast there:), but its called weed because its so easy to grow.So unless they can value add produce unique products alot will go up in smoke. Hikurangi are doing things like looking at the whole plant and mixing manuka honey with the ground up roots for example and coming uo with some innovative ideas.
I got in to one or two of the plethora of marijuana stocks that appeared on the ASX a year or two back and got out quickly too with profits. many have fallen away since
So what are you selling balance. Im out and gone btw with my nuggets:)
Yep I'll be joining into the IPO. Have stayed away to date from NZ companies to date (not my cup of tea). Will be good to join finally.
I received the PDS of Cannasouth Ltd. from ASB late this afternoon re offering 50 cents/share. But no, I'm NOT buying into this.
https://app.companiesoffice.govt.nz/...e87ba1decf949f
Here is a direct link to the PDS of this company for those that are interested, although I am personally not interested.
I like it, but $50,000,000 MC I don't know about that seems too steep.
Capital raising starting 27th May and closing 14th June
http://www.voxy.co.nz/business/5/338713
Listing will occur on 19th June
https://www.nzherald.co.nz/business/...ectid=12231770
Annual Report 2019
https://www.cannasouth.co.nz/investors/reports-news/
Well said Lewy. There is a place for medical THC in pain relief. I stand firmly in the scientist/analyst corner and will look for the investment opportunity for this be it NZ, Oz or US/Canada. Can’t be bothered with the emotion of those who form opinion solely from social media banging on about their human rights. Rather be watching for the next ATM!
No revenue, no products, perfect what could possibly go wrong. I'm in for flutter if I can get some.
I’ll put some punting money into this ..bit boring now WINX.AU has been delisted
Quite a few from big end of town already shareholders (didn’t see percy’s Name amongst them though)
Chair Tony Ho did OK out of running a seeds business and we’ll forgive him for being involved in Trutest
They do have a product pipeline, but no idea how quick they will be offering these products
https://www.cannasouth.co.nz/what-we-do/products/
This doesn't seem justifiable as an investment, does it?
Firstly, the company requires some further regulatory change to be able to fully operationalise the fruits of its research. So if the regulatory change doesn't come, or come in a timely fashion, it's basically worthless.
However, if the regulatory change does come through, then what prevents its overseas competitors from exporting into NZ and beating Cannasouth at its own game, as other posters have already said? I was in LA recently and a lot of mainstream pharmacies had CBD sections for example, so there are obviously loads of companies overseas that have a jump on Cannasouth.
Things might be different if Cannasouth had some unique technology protected by patent or similar that it could take global but it doesn't sound like they have much (any?) of that. I note that the PDS talked about NZ being clean, green, pristine and all that but at the end of the day I don't see that making a huge difference...
Actually for medical cannabis use has been passed into law and the current hold up is having a proper scheme in place which will be this year from what I have read.
"The passing of the Misuse of Drugs (Medicinal Cannabis) Amendment Act late last year requires a medicinal cannabis scheme to be place. The Government has agreed to a 12-month horizon to get this work done. This will allow New Zealand companies like ours to manufacture medicinal cannabis products for both local and international markets."
http://www.scoop.co.nz/stories/GE190...e-priority.htm
"The Misuse of Drugs (Medicinal Cannabis) Amendment Act has been passed and is in effect but the Medicinal Cannabis Scheme is not yet in place. The quality requirements of the scheme will be developed and consulted on in 2019........We anticipate these regulations to be made by the end of 2019."
https://www.health.govt.nz/our-work/...-and-producers
The Government has signalled its intent to improve access to medicinal cannabis products for patients through the establishment of a Medicinal Cannabis Scheme. One of the proposals is to extend the current licensing regime to cover cultivation and manufacture of medicinal cannabis in New Zealand for commercial purposes.
https://www.health.govt.nz/our-work/...nabis-products
Yeah I do agree it has a PEB like substance towards it. Could spend too much time and money developing the product and when the product is developed they would need to sell it in a crowded market place. Until they have a proper timeline and plan of sale, then I don't have an appetite for such an investment, unless the valuation was cheap enough to justify the risk, which currently doesn't appear so.
Thank you for the clarification, I think I had my understanding nearly correct in that I knew some kind of further regulations were intended to be developed - i.e., the medicinal cannabis scheme. However, from what I know of how government works, end of 2019 for regulations to be developed might become end of 2020?
I think the way to make money on this one is to buy at the right price (obviously) then sell during all the strong feelings when the referendum happens in 2020, before the results... or hold if you're confident it's going to pass.
I don't know about the latter, but there will definitely be a lot of exposure / advertising of these stocks at that time, that will likely push the price up.
I won't be joining in.
New Zealand’s first weed IPO launches today. Should you buy in?
https://thespinoff.co.nz/business/27...ld-you-buy-in/
At least this should create some interesting banter between the bulls and the bears
Going to put some into this, might end up with a good high in green or left with just sinking red eyes
From the PDS, Cannasouth will have an implied market capitalisation post IPO of $46m - $51m yet has no revenue or even products?!?
The lucky wholesale investors who invested in August stand to make a 6.4x return in 9 months! While the poor investors who waited a month, stand only to make a 2x return in 8 months....!
Madness :ohmy:Quote:
Summary of Capital Raising Initiatives and Commercial Milestones
• in August 2018, Cannasouth undertook its first external capital raising where
it raised $1.2 million at a pre-investment valuation of $5 million from several
“wholesale investors” (as that term is defined in the Financial Markets Conduct
Act); and
• in October 2018, Cannasouth undertook its second external capital raising,
where it raised $2.5 million at a pre-investment valuation of $18 million from
approximately 38 “wholesale investors” (as that term is defined in the Financial
Markets Conduct Act).
It used to be tulips.... now its dope..... :)
Not madness at all, ask yourself why the wholesale (early) investors agreed to IPO? Surely not to get rich(er)? either way they win, by selling into the post IPO euphoria or by holding shares that are are 10 baggers.
Sort of like private equity floats, or back door promoters, they expect pretty much instant returns of 10x+ multiples and it's the dumb f*ck punters who fund it.
And you're right, no product, no revenue and they're a biotech research company. May never be any products, let alone whether any one wants to buy them if they do have products.
And for that reason, I'm out.
Edit: or the ability for production at scale, sales, marketing, distribution ... so many unknowns.
Actually technically thats not right, since post IPO valuation includes dilution of existing shares. $46-51 million includes the raised $5-10 million. So valuation before dilution is $41 million
August raise is calculated at $5 million valuation + $1.2 million raise = $6.2 million valuation after raise = 41/ 6.2 = 6.6x
October raise is $18 million + $2.5 million = $20.5 million = 41/20.5 = 2x
Still massive gains but not as high as you originally though, though comes with the risk thats why the gains are higher. Its only great when you win, but you'll also have to consider how many other investments that don't make it and to justify the risk they have to give a high reward. By no means do I think the valuation is worth it given no revenues and no ideal future prospects yet, though markets are not rational and think about the big possibilities that could happen.
...What I found interesting is the low amounts the directors are currently paid.
Anthony Ho - $40,000
Conor English - $40,000
Mark Lucas - $80,000
Nic Foreman - $80,000
Furthermore
"No prospective financial information provided"
"Cannasouth has yet to generate any revenue as at the date of this PDS, andhas no contractual arrangements in place which provide for the generation offuture revenues"
Can some one post Brian Gaynors Saturday N Z Herald business column, not too flattering comments me thinks and only for the very very very brave imho !!!
buyer beware imo.
Tim Preston, Sean Joyce and John Sorensen .............. not much else you really need to know....
After reading the N Z Herald I see that one of the first actions that this outfit has done is give fish heads a big salary/pay rise even though there is no real business plan with meaningful financial plans available, says it all IMHO !
The NZX is sending out emails advertising the IPO. A sure sign that Cannasouth is having trouble filling up the issue. Not one to stag in my opinion.
Yeah agreed. Some of the most recent tech listings are doing pretty well after slow starts. But pre revenue biotech gives me the heebies.
Cannabis use in U.S. adults over age 65 saw more than a tenfold increase from 2007 to 2017
https://www.cnbc.com/2019/06/07/mari...treatment.html
looks the biggest market in the future will be over 65s
Your mention of Kiwibear brings back memories. Although to be fair comparing Cannasouth with Kiwibear does Kiwibear a disservice. At least Kiwibear had some sort of business plan.
I regret not keeping some of those prospectuses they would make interesting reading.
I see that this " investment " is due to list on the 19/6/19 , thoughts please !
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Agree with you 100% - this is not an investment.
Expect though that the promoters will 'manage' this to list at a premium to suck the naive and greedy in - just like Snakk, Plus SMS etc etc.
There are enough out there who are easily sucked into the latest and greatest - as promoted.
Get in, get out before they have a chance to unleash their shares onto the market after the expected ramping up.
https://www.youtube.com/watch?v=-tJYN-eG1zk
Same reason why 'anyone' got involved in Plus SMS & Snakk.
I met many a lawyer, accountant, broker and many a director (during the time that Plus SMS was being ramped ever higher) who asked me why i was not participating in the great story of Plus SMS.
The rest as they say, is history which the NZX is hell-bent on repeating (refer Brian Gaynor's NZ Herald article).
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MBIE funding welcome news for medicinal cannabis
http://www.scoop.co.nz/stories/BU190...l-cannabis.htm
The country’s largest licensed medicinal cannabis company, Helius Therapeutics
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Listed today. No sale yet-Buyers 65c Sellers 57c augers well for a quick start. Ticker CBD.
Who are the two smart ones with a buy price for 1 share each at 1 cent.
Looks like they had second thoughts and removed the bids.
It's a weird looking board - games being played? Buyers now 75c Sellers 55c no sales.
Must be a 1100 kick off. Time for the TV cameras to set them selves up.
Need the big WELCOME TO THE NZX speech and all that glitz
First new listing this year .....HUGE EVENT
The tension mounts
will they be handing out doobies at the launch?
..........
Looks like a flop....trading up 1c at 51c with plenty of sellers lined up and thin bids....how long before its at 40-45c and drifing lower?
And open, plenty on the sell side, will be fun to watch how this trades today.
reaching a high of 51 cents...
Next buy orders at 47 cents for 1000 shares ......
Then 45 cents for 9000 shares.....
This isn't going to be pretty at all.
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turns out its just cabbage.
Is that sorehead and the other fishheads selling today, money for jam, IMHO this could mirror SNAKK and dribble down to where, .00000 1? w
Am I reading this right that sore head has 9 mil shares in this outfit can I ask someone for what cost ?
this stock might go down in nz history as the biggest ipo flop ever?
whats the true value here considering its financials, track record and prospects ?
I've got the munchies.....oh, it is lunchtime......
For me currently I'd value them at $15 million, considering the cash they have, the risk involved particularly no revenue, they have some good intellectuals onboard, but as the stock market will always point out its about future cashflows and theres a lot of doubt we'd see any anytime soon. They will lose a ton of money in R & D and then if they have products the time it takes to sell and gaining traction will be tough on them too.
Yeah 15m there is a better number (-70%) - but 50! and most went to the two people. I think shareholders might have needed a bit more skin in the game than that.
-28% at the moment - good to see the market represent a better value in this. ~40 mill
-50%-75% and maybe I'll be interested. Or will wait to see how they intent to jusitify current value.
Try zero for the original shareholders/founders of the company - 58.1m shares (now worth magically $29.05m at IPO price of 50c).
Try 8.6c for the 13.9m shares issued to the promoters.
So the idiots who paid 50c for the IPO shares were/are paying 5.8 times (580% more) than the promoters.
And as Brian Gaynor highlighted in his article, there's no escrow arrangement so they are free to sell out day 1 - which they probably already are.
Why do and why should they care about the idiots who willingly parted $10m for less than 20% of the company?
https://www.nzherald.co.nz/business/...ectid=12241768
https://www.newshub.co.nz/home/money...n-the-nzx.html
Get excited - the company aims to be a world leader.
Looking forward to the many congratulatory photos of the NZX welcoming its first IPO since forever.
Calling MARK PETERSON & JAMES MILLER! Where are you both????????
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