Riding a nice share price rise from $2.50 in late December to $3.12 today, cannabis vertical integration and branding play CannaRoyalty (CRZ.C) announced Monday that it had signed an LOI to pick up a 20% interest in Canadian cannabis biotech star Anandia Labs, leading to yet more positive share movement.
Anandia Labs has, according to CannaRoyalty’s news release, “completed extensive research into cannabis genetics and has built a significant intellectual property position that includes cannabinoid pathway patents.”
It has also, “been issued a Health Canada Dealers License pursuant to the provisions of the Controlled Drugs and Substances Act and the Narcotic Control Regulations. The Dealers License permits Anandia Labs to analyze and extract cannabis, and cultivate cannabis for breeding and strain improvement. This licensing gives Anandia Labs the ability to undertake research and development, and develop products beyond those currently permitted for Licensed Producers under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR).”
The company is earning revenue through testing and analytical services for seven Licensed Producers under the ACMPR currently.
CannaRoyalty boss Marc Lustig has been busy since his company’s early December market debut, having entered into a royalty financing deal with Puerto Rico’s first licensed cultivation and manufacturing weed facility. That deal brings CRZ a 2.5% royalty on all net profits of Natural Ventures, the largest producer on the island. The deal also makes CRZ’s 21 other assets available to Natural Ventures under license.
Worth noting on that deal is that Puerto Rico has a population of 3.6 million, with an additional 2 million tourists per year. International Cannabis Corporation (ICC, which has a production license in Uruguay, with a similar population but far less tourist traffic), has a market value at $107 million.
CannaRoyalty, with 22 assets in the cannabis space, across multiple sub-sectors and in a wide range of US states, including their Puerto Rico deal, is worth just $111 million, presenting an interesting upward opportunity, even after its recent 20% jump in share price.
CRZ’s existing research-based assets and partnerships include BAS Research out of California, and Bodhi Research in Toronto, with stakes in IP companies such as medical device company Resolve Digital Health, vape product developer Dreamcatcher Labs, and equipment supplier Wagner Dimas.
— Chris Parry
FULL DISCLOSURE: The author owns a stake in CannaRoyalty.
Had a feeling this one was getting pump and dumpy once you started covering it. Every stock I’ve ever owned that you’ve covered has gone straight down. Should have sold while I was ahead. Down to 0 it goes now it looks like. Great.