Canadian Cannabis Stock TCAN Up 11.16 Percent For Week of March 30, 2019

TransCanna Cannabis Stock Up 11.16 Percent For Week of March 30, 2019

A primary driver for this Canadian marijuana stock (CSE: $TCAN) during the week of March 30 was an announcement by the accounting firm Green Growth CPA. Green Growth concluded Transcanna Holdings had a “valuation range of $50 million to $75 million (U.S.), as of January 31, 2019.

Meanwhile, investors in the burgeoning marijuana stock sector received some great news last week when the House Financial Services Committee passed a cannabis-banking bill. The Safe Banking Act was passed by a vote of 45 to 15 and now faces a full House vote. With 152 co-sponsors already signed on in support of the legislation, there is hope the SAFE Banking Act will finally provide America’s financial institutions the right to work with the legal marijuana industry.

Other big stories this week for marijuana stocks involved adult-use legalization in Guam, the Mexican government asking its citizens if marijuana should be legal, and the head of the Food and Drug Administration (FDA) clarifying the agencies enforcement priorities for CBD products.   

But while America’s interest in legalizing recreational marijuana hit a new high last week, the potential use of the plant’s CBD cannabinoid (Cannabidiol) for medicinal applications (now available at Walgreens and CVS) had many investors intrigued.

As for Transcanna's stock value, in addition to receiving a multi-million dollar valuation from GreenGrowth CPA last week, the Winslow Record reported that Transcanna currently has a debt to equity ratio of zero.

According to Winslow,  "this ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at 0.03705. This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. TransCanna Holdings Inc.’s ND to MV current stands at -0.001091. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company."

TransCanna Gains Value As Market Slips

TransCanna is up 28 percent for the month of March.

After hitting a daily high of $3.51 per unit on Friday, TCAN closed out the week of March 22, 2019, at $3.40 per unit. Traded on the Canadian Securities Exchange (CSE), the company was originally listed on Tuesday, January 8, 2019, at $.50 per unit. 

Through its wholly owned California subsidiaries, the Canadian-based cannabis company provides help with marijuana branding, transportation, and distribution services.

While TCAN’s value is up a respectable 28 percent since March 1, 2019, the company’s stock price has increased a respectable 580 percent since the Initial Public Offering. 

TransCanna Holdings Inc. Stock History

Friday’s Marijuana Stock Trade

The total trade Volume for Friday was 31,335 units, with TD Securities, Hayward Securities, Canaccord Capital Corporation and Pershing Securities Canada Limited making some of the biggest trades of the day.

     Trade Date/Time  Price            Volume         Buyer                          

• Mar 22, 13:58  3.40                 200      JitneyTrade Inc.            
• Mar 22, 13:57  3.40                 500      BMO Nesbitt Burns Inc.  
• Mar 22, 13:52  3.37     -0.03    100      Anonymous                     
• Mar 22, 13:05  3.35     -0.05    300      Anonymous                     
• Mar 22, 13:05  3.35     -0.05    900      RBC Capital Markets     
• Mar 22, 13:05  3.37     -0.03    500      CIBC World Markets Inc.
• Mar 22, 13:04  3.40                 600      TD Securities Inc.            
• Mar 22, 13:04  3.39     -0.01    100      TD Securities Inc.           
• Mar 22, 12:57  3.39     -0.01    100      Anonymous                    
• Mar 22, 12:56  3.39     -0.01    500      Anonymous                    
• Mar 22, 12:44  3.39     -0.01    200      Anonymous                   
• Mar 22, 12:41  3.39     -0.01    300      Anonymous                  
• Mar 22, 12:32  3.39     -0.01    2,300   TD Securities Inc.           
• Mar 22, 12:10  3.36     -0.04    1,500   Anonymous                   
• Mar 22, 11:57  3.39     -0.01    500      Canaccord Corp.            
• Mar 22, 11:31  3.39     -0.01    300      Scotia Capital Inc.         
• Mar 22, 11:20  3.36     -0.04    500      Anonymous                   
• Mar 22, 11:20  3.36     -0.04    1,000   Virtu ITG Canada Corp. 
• Mar 22, 11:20  3.37     -0.03    4,300   Pershing Securities        
• Mar 22, 10:58  3.39     -0.01    100      Scotia Capital Inc.        
• Mar 22, 10:38  3.39     -0.01    1,500   CIBC World Markets Inc.
• Mar 22, 10:12  3.40                 2,200   Haywood Securities Inc. 
• Mar 22, 10:12  3.40                 300      Haywood Securities Inc.
• Mar 22, 10:07  3.40                 200      Scotia Capital Inc.        
• Mar 22, 7:57    3.36     -0.04    500      Instinet Canada Limited  

Transcanna has room to grow

In part, this week's appreciation can be attributed to Transcanna’s March 20 press release.

“The Company has signed definitive closing documents to acquire the land, building and asset package (the “Property”) which includes an existing 196,000 square foot facility on 5.5 acres of land as well as cannabis packaging and processing equipment. The California cultivation facility has undergone major renovations over the past two years and has created specific divisions for nursery, cultivation, manufacturing, extracting, bottling, remediation, and transportation & distribution.”

According to the company's CEO Jim Pakulis, "Acquiring arguably the largest vertically integrated cannabis centric three‐story multi‐purpose facility in California reinforces  our  strategy to  be  fully self‐contained  in our ecosystem.  We also have an  additional 5 acres in the green zone adjacent to the facility to build up to 600,000 sq. ft. grow facility to supply our own biomass for the brands we acquire or create.

Marijuana is currently legal in South Africa, Spain, Peru, Uruguay and Canada. And according to a 2018 Pew Research Ctr. Poll, 62% of Americans support marijuana legalization. As such, spending on legal marijuana products globally is anticipated to hit $57 billion in just 10 short years, according to Arcview Market Research and BDS Analytics. 

TCAN Marijuana Stock Up 4.1 Percent For Week

Marijuana stock news for the week was a mixed bag of tricks. Friday's close was a little bit of disappointment compared to Tuesday's high, but TransCanna Inc. was up 4.1 percent for the week. 

Transcanna Holdings Inc. C.TCAN

One of the primary drivers for this Canadian marijuana stock (CSE: TCAN) during the week of March 11, 2019 was an announcement from the company that their $10M Private Placement offer had been substantially exceeded.

TransCanna Holdings Inc. announced on Friday "that as a result of significant demand, the Company’s brokered private placement of 5,000,000 Units at $2.00 (CDN) per Unit is now oversubscribed." Subsequently, TransCanna has increased its Offering by 60 percent – to a maximum of 8,000,000 Units. The total gross proceeds from the company's offering is now anticipated to reach $16,000,000 Canadian dollars.

According to the Cannabis Investor, "The Company intends to use the net proceeds of the Offering to partially fund the acquisition of a 196,000 square foot vertically integrated cannabis facility in Modesto California, as announced on February 4, 2019." 

Per the CI post, "The Company anticipates using debt financing in combination with the capital from this private placement to secure the facility, with any residual funds being used for equipment acquisition and general working capital."

About Transcanna

Currently listed on both the Canadian Securities Exchange (TCAN) and the Frankfurt Stock Exchange (TH8), TransCanna received a temporary distribution license in the state of California in mid-January, signed a Letter of Intent to acquire Goodfellas LLC in late January, and announced their intention to acquire a 196,000 ft.² facility on Feb. 4. Additionally, the company has introduced their proprietary software known as 420 Global. 

420 Global will allow the Company to efficiently operate and fulfill every business aspect within their current and future facilities throughout the California cannabis market.  “By streamlining this incredible amount of data and allowing management teams to pull pertinent reports in a timely manner is a tremendous benefit. 420 Global will be the backbone of our enterprise, the completion was on budget and ahead of schedule.”  Stated Jim Pakulis CEO.

And according to Yahoo! Finance, cannabis stocks will continue to be a smoldering investment opportunity in 2019.

High on Yahoo's list were cannabis stocks like Cronos Group Inc., Canopy Growth Corp, Tilray Inc., Aurora Cannabis Inc., CannTrust Holdings, Aphria Inc., and GW Pharmaceuticals.

TransCanna Ends The Week On Another High Note

TransCanna (CSE: $TCAN) has soared over 500 percent in first two months of 2019. 

For those savvy cannabis investors in search of a great marijuana stock, it pays to remember that sometimes taking the road less traveled is the smarter choice. 

While Canada's major marijuana producers get the most attention in the hectic 24-hour news cycle, smaller marijuana businesses that focus on the U.S. sector could be even smarter picks. And there's one marijuana stock that many investors have overlooked  that has quietly delivered elevated returns. 

TransCanna is technically a Canadian company -- since it's based in Vancouver, BC. But the company's primary operations are in California, where the company is working to become the leading distributor of cannabis products. That simple fact is critical, because California is poised to cultivate the largest marijuana market in the world.

Although California's legal recreational marijuana market opened for business in January 2018, it got off to an ugly start. Stifling sales at first, the state's tax rates were unfortunately set too high when recreational sales was initially rolled out. Overly restrictive regulations also hindered progress. Meanwhile, state regulators permitted fewer recreational dispensaries than they should have to adequately support the state's adult-use cannabis market.

In short, California’s elected officials understand they've got a big problem. In hopes of addressing the issues, Gov. Gavin Newsom wants to beef up enforcement to go after the state's black market marijuana, according to the LA Times. Meanwhile, California lawmakers are considering reducing cannabis excise taxes and suspending the cultivation tax for three years. 

As such, there's nowhere to go but up after California's dismal launch of their recreational marijuana market. And I truly think the state will end up making some sober changes to the rules and regulations in order to avoid losing out on future tax revenue. As it does, there will be more legal cannabis growers and more dispensaries licensed. And that will enable TransCanna's value to rapidly increase.

Three Reasons TCAN is a Buy In 2019

1. TransCanna Rolls Out Track-and-Trace Software

420 Global is a state‐of‐the‐art proprietary software that's designed to create a Business Intelligence backend which integrates accounting, human resources, procurement, manufacturing and project management solutions.  The software will integrate with the Company’s Warehouse Management System (WMS) and with METRC California’s Cannabis Track‐and‐Trace (CCTT) system making the company fully compliant.

2. TransCanna Accepts Option To Acquire 196,000 Sq. Ft. Enclosed Cannabis Facility

The company announced on February 4, 2019 it had accepted the assignment of a real estate option agreement (“Option Agreement”) from its CEO, Jim Pakulis, to acquire a land, building and asset package (the “Property”) which includes an existing 196,000 square foot facility on 6.5 acres of land, as well as cannabis packaging and processing equipment. 

3. TransCanna granted temporary CA Distribution License.

The company announced on January 18, 2019 that TCM Distribution, Inc. (“TCMD”), a non-profit entity managed by TransCanna had received its temporary distributor license from the state of California. And as of December 31, 2018, TCMD had already submitted their permanent distribution license application to the state. 

TransCanna specializes in assisting their clients who are cannabis farmers and manufacturers get recognized by end consumers who in turn purchase their products. The company offers their services throughout every aspect of the marijuana ecosystem; from branding and design, to transportation and distribution, to marketing and sales.

Marijuana Short Sellers Get Smoked In February

Stock investors gambling against the cannabis play lost big in February. 

Short sellers of marijuana stocks, a.k.a. investors rolling the dice against pot stocks, lost more than $200 million during one day of trading in February, according to Business Insider.

“On Tuesday, several major marijuana producers including Cronos Group, Aphria, and Aurora Cannabis gained more than 6%.” And per data gathered by the financial-analytics firm S3 Partners, “that rally pummeled marijuana short-sellers with $213 million of mark-to-market losses.”

Per the firm’s dissected analytics, those betting against cannabis stocks have primarily focused on 10 marijuana stocks that span 150 cannabis-related securities. 

In February, the “total shares” of shorted marijuana stocks decline by 4.2 million shares for the following top-10 cannabis stocks. 

And according to S3 Partners, that pull-back in shorts is an indication “those with less conviction cut some of their exposure.”

In other words, it would appear that investors are growing increasingly more confident as a direct result of expanding legalization in the U.S. and ongoing efforts in Canada to remove obstacles the within cannabis industry. 

TransCanna is poised to grow

Listed on the Canadian Securities Exchange(CSE), TransCanna Holdings Inc., completed its IPO on Jan. 8, 2019 selling 4.4 million units at $0.50 cents each. As of Friday, March 1, 2019, TransCanna (TCAN) closed at $2.65 per unit. That represents a 430 percent uptick in value in less than two months.

For those that don’t know, TransCanna provides branding, transportation and distribution services through its wholly owned subsidiaries in California. 

On Feb. 22, the company announced the execution of an LOI to lease a new 15,000 square foot facility currently under construction with a completion date of April 30th in Adelanto, CA. This multi‐faceted facility is intended to be one of four strategically located satellite facilities located throughout California.  

"The Adelanto facility will serve the densely populated southern California marketplace with industrial scale production, distribution and transportation capabilities," according to the press release.