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.
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.