Tweed Marijuana’s stock price shoots up during TSX debut

OBJ Staff
Send to a friend

Send this article to a friend.

Investors took the first marijuana grower to be traded on a Canadian stock exchange through an up and down day during its stock market debut.

(Stock photo)

Shares in Tweed Marijuana Inc. (TSX-V:TWD), a Smiths Falls-based company, began trading on Friday morning, the day after it closed a reverse takeover deal with LW Capital Pool.

The stock-only deal, which was valued at around $30 million, saw Tweed take over the shell company’s listing on the TSX Venture exchange.

Also on Friday, the company announced that it was granting its officers and directors 251,210 stock options, which can be exercised at a price of 89 cents, the issue price of Tweed’s common shares.

Those options are already looking a lot more valuable. Heavy early morning trading pushed the stock up above $4.50 a share. By mid-afternoon it had fallen to around $2.60 a share.

The company, which has been allowed to ship medical marijuana since Monday, also announced that it has acquired a number of plants and seeds from growers that were licensed under the previous regulations but that are no longer legally allowed to grow marijuana.

The company said the transaction was conducted before the end of March.

As of Thursday, the company said that one shipment was being held by the RCMP, which was reviewing the details. Tweed said it informed the Mounties of the shipments and invited them to “examine the material.”

With the new plants and seeds, Tweed said it now offers 80 strains of marijuana.

“In addition to providing Tweed customers with additional variety, these purchases were undertaken to assist Tweed in ensuring that it had sufficient future inventory to meet demand, which is already showing signs of exceeding short-term production capacity,” the company said in a press release.

Organizations: TSX, Tweed Marijuana, LW Capital Pool RCMP

  • 1
  • 2
  • 3
  • 4
  • 5

Thanks for voting!

Top of page

Comments

Comments

Recent comments

  • awesomesound
    April 21, 2014 - 16:11

    please save your had earned money this stock will tank soon as they still have no medicine and patients are waiting, also there is a constitutional challange injunction so there are no new patients, Health Canada has had 13 years to put as system in place which they have NOT been able to do, HC's estimate of 400,000 patients is ridiculas, and very mis leading for investers, this is what you will find in the future.

  • Joe
    April 09, 2014 - 09:08

    They are not the only company so its not a monopoly. They are the first to be traded on the tsx. Read the first line in the article.

  • groovy
    April 08, 2014 - 00:35

    http://blogs.vancouversun.com/2014/04/07/canadas-medical-marijuana-rules-are-made-to-be-broken-2/

  • Jeff
    April 07, 2014 - 11:15

    This sounds a lot more like The Beer Store in Ontario, they should run it like the LCBO. Keep high paying, quality jobs in the Province/Country.

  • grel
    April 07, 2014 - 09:21

    Wow. Wonder how many friends tweed executives have in government. Nice to know they've gotten rich off the hard work of others. Must be nice to have a government mandated monopoly on one of the fastest growing markets in north america. Thanks now just like with phones and internet, canadians have one choice for their needs.

    • Sydney
      April 09, 2014 - 12:04

      Grel, Canadians do have a choice - there are 12 licensed grow companies, Tweed is just one. If you don't like Tweed, check out another company.

    • Sydney
      April 09, 2014 - 12:05

      Grel, Canadians do have a choice - there are 12 licensed grow companies, Tweed is just one. If you don't like Tweed, check out another company.