5. California-based MedMen Enterprises, the U.S. marijuana retailer known for its upscale, Apple-like stores, began trading on the CSE yesterday under the symbol “MMEN“…it opened at $5.63, near its high for the day, and closed at $4.95…it’s off 29 cents at $4.66 through the first 30 minutes of trading this morning…with more than 800 employees and 18 licensed facilities in California, Nevada and New York, MedMen is one of the fastest-growing companies in the quickly evolving U.S. cannabis industry…the 3 states where Medmen currently operates account for about half of the addressable cannabis market in the United States..state-sanctioned cannabis sales in the country are estimated at about $7 billion (U.S.) annually and expected to reach $75 billion (U.S.) by 2030, according to the Cowen Group. “MedMen’s vision is simple but revolutionary: Cannabis as a consumer product,” stated co-founder and CEO Adam Bierman. “For the better part of a decade we have been singularly focused on that vision – creating the systems and infrastructure that raise the bar on product quality and safety and providing a retail shopping experience that is second to none. By going public, MedMen gives investors a ground-floor opportunity to participate in the enormous and untapped potential of the fastest-growing industry in the United States”…MedMen’s listing follows the successful completion of a reverse takeover…in connection with RTO and MedMen’s listing on the CSE, the company raised approximately $143 million, or $110 million (U.S.), through a private placement at an implied enterprise valuation of $2.14 billion CDN…
Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,295 and $1,303 so far today…as of 7:00 am Pacific, bullion is up $2 an ounce at $1,300…Silver has retreated 7 cents to $16.36…Nickel, continuing its hot run, has jumped 11 cents to $6.84…Copper is off 2 pennies at $3.08…Zinc is a penny higher at $1.41 while Cobalt is steady at $41.28…Crude Oil has recovered 54 cents to $66.91 while the U.S. Dollar Index has eased off nearly half a point to 94.39…U.S. economic growth slowed slightly more than initially thought in the 1st quarter amid downward revisions to inventory investment and consumer spending, but income tax cuts and regulatory rollbacks are likely to boost activity this year…GDP increased at a 2.2% annual rate, the Commerce Department said in its second estimate of Q1 GDP released this morning, instead of the previously reported 2.3% pace…the economy grew at a 2.9% clip in Q4…
2. The most recent data on Swiss Gold exports confirm muted Gold demand in Asia lately, according to Commerzbank…analysts cited data from customs authorities showing that Switzerland exported only 43.7 tonnes of Gold to China and Hong Kong in April, the least since September…Switzerland likewise exported only a small amount of Gold – 26.2 tonnes – to India…yesterday, Commerzbank cited data from the Census and Statistics Department of the Hong Kong government that also suggested soft Chinese demand for Gold…in particular, Commerzbank pointed out that net Chinese Gold imports from Hong Kong fell to 38.4 tonnes in April, which was a decline of 35% month-on-month and 48% year-on-year…
3. On a positive note with Gold, bullion is approaching a “sweet spot” as macro and micro fundamentals align, according to BMO Capital Markets…the firm adds that now is the ideal time for investors to be paying attention to the yellow metal and quality Gold stocks….“Macroeconomic, company fundamentals and valuation all point toward an opportunity for investors to benefit from increased exposure to precious metal equities,” analysts at BMO said in a report published yesterday…“A return to higher Gold and Silver prices may just be the catalyst needed to reinvigorate investor interest”…BMO has upwardly revised this year’s Gold price outlook by 4% to $1,327 an ounce, highlighting inflation and the yellow metal’s resiliency to a rising U.S. dollar…“Gold has found support from rising geopolitical risk along with increasing concerns that the current U.S. expansion is soon nearing an end. Gold typically does well at the early stages of an inflation cycle, which does tend to come just after the peak rate of expansion,” analysts added..
4. Pure Gold Mining (PGM, TSX-V) reported this morning that with the close of its recent financing, and approximately $24 million now in the treasury, the company is fully funded to complete the definitive feasibility study, finalize remaining mining and processing permits, extract a 7,200 tonne bulk sample, and undertake an additional 21,000 m of exploration drilling focused on increasing the scale of its Madsen Project in the Red Lake district beyond what was contemplated in its initial feasibility study…“Our feasibility team is making great progress and the study is on track for completion in Q4 2018,” stated Darin Labrenz, Pure Gold President and CEO. “Importantly, our work program is fully funded through to mid-2019 when we anticipate having all required updated permits in place to support our goal of advancing Madsen to production. As outlined in our 2018 Preliminary Economic Assessment, Madsen has the potential to be a low capital intensity project leveraging key existing infrastructure to provide high margins, setting it apart from other near-term producers in our space. Our current development program is designed to further de-risk the project, demonstrate the upside growth potential and scalability, and put the Madsen Gold Project firmly on the path to becoming Ontario’s next Gold mine.”
6. After yesterday’s nearly 500-point drop, the Dow has rebounded 112 points through the first 30 minutes of trading…in Toronto, the TSX is up 60 points as it tries to snap a 6-session losing skid after 11 straight winning sessions…Aurora Cannabis (ACB, TSX) says it has launched a new product line called Aurora Frost…this new dried cannabis product line represents the highest potency offering of any Aurora product launched to date at over 35% THC…the Venture is flat at 771…Canada Cobalt (CCW, TSX-V) has jumped 4 cents to 37 cents in early trading as crews prepare for imminent underground drilling at the Castle mine in the Northern Ontario Cobalt Camp…GT Gold (GTT, TSX-V) continues to firm and appears ready to break out to new 2018 highs given increasing technical momentum and mobilization of crews starting Friday at the company’s Saddle South high-grade Gold discovery in northwest British Columbia…White Gold (WGO, TSX-V) has commenced its 2018 drill program on its extensive land package representing approximately 40% of the White Gold district in the Yukon…the company reported this morning that it has initiated drilling on two of its highest priority properties, White Gold and Betty…drilling is scheduled to commence on 2 additional targets in the coming weeks as part of the company’s 3-year regional exploration plan…a total of 5 drill rigs will be operational this season to drill 20,000 m across 6 properties…it appears WGO may have bottomed in the 60’s in April after a 1-year decline from a high of $2.30…
7. Thanks to climate change extremism, excessive taxation and over-regulation, all neatly wrapped into Justin Trudeau’s disastrous National Energy Program (worse than his father’s in the early 1980’s, if that’s possible), Canada is so closed for business when it comes to the energy sector now that the “buyer of last resort” – the federal government – has stepped in and nationalized the Kinder Morgan Pipeline…yesterday’s decision by the feds to use $4.5 billion in taxpayers’ money to buy this pipeline project from Kinder Morgan was a sham and a disgrace, an admission of failure on part of the government in terms of its energy “strategy”, though it seems its only strategy is to transition Canada out of Oil to a utopian ‘green’ and ‘clean’ economy…just as bizarre yesterday was seeing Alberta’s socialist Premier exchanging high-fives with her colleagues on the news of the Feds’ buyout of the pipeline, a seen reminiscent of George Bush’s ridiculous “Mission Accomplished” moment during the last Iraq War…Rachel Notley said her 3 conditions have been met – 1) immediate resumption of construction; 2) concrete guarantees of project completion; and 3) Albertans getting value for their investment…“This has been accomplished,” Notley insisted…oh, really?…not a chance…there is still NO plan to deal with the obstructionist and Oil-hating B.C. government (the “Green Monster”) which yesterday reiterated its steadfast opposition to the already approved project and even doubled down on its encouragement of citizens to protest (“peacefully”, of course) the pipeline expansion…are the feds and Notley’s socialists ready to fight the War in the Woods that B.C. activists, backed by the Green Monster, will wage?…there are 840,000 kilometers of pipeline operating in Canada today…almost all of that hugely impressive network has been constructed using private capital that was efficiently deployed by investors who saw in Canada an intelligently designed and applied regulatory framework…that reputation has now been destroyed by left-wing politicians, federally and provincially, who worship their false Green gods…the Trudeau National Energy Program, like its predecessor in the 80’s, is not friendly to the Oil industry, has thrown Canada’s regulatory framework into a tangled mess, and is hurting this nation immensely in terms of lost jobs, investment and economic growth…Canadians, apologizing for being blessed with the world’s 3rd-largest Oil reserves, will wake up one morning in the not-too-distant future and ask themselves, “What the hell have we done?“…
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did I read it right – MEDMEN will still be controlled by insiders to the tune of over 90% and make over $65MM this year. https://equity.guru/2018/05/29/green-organic-dutchman-tgod-t-medmen-mmen-c-hit-billion-dollar-valuation-one-smiling/
Comment by David — May 30, 2018 @ 9:31 am
MOON getting some volume here, is this a good time to accumulate? And what is going on with FTEC, down to 11 cents, wow has this one ever gotten crushed.
Comment by Tycoon777 — May 30, 2018 @ 10:56 am
Hey BMR, any comment on the drop in AIS shares price..?
Seems to be dipping into oversold region. Any comments?
Comment by Danny — May 30, 2018 @ 12:41 pm
To me it looks like technically related selling, but looking into it, Danny.
Comment by Jon - BMR — May 30, 2018 @ 12:43 pm
Higher than usual volume today on AIS and FTEC and GTT.
Comment by Bryan — May 30, 2018 @ 1:17 pm
FWIW, AIS looks to have a triple-bottom in now. I am no chart expert. Literally last 30 minutes or so, people were just dumping. TD really started this whole thing yesterday just selling into the bid. Anytime it looked like it would come up for air, kept getting slammed. Like to hear BMR thoughts…
Comment by BigBid — May 30, 2018 @ 1:31 pm
Great day for Canada Cobalt, up 4.5 cents on nearly 3 million shares after a late day cross…
Comment by Jon - BMR — May 30, 2018 @ 1:32 pm
I agree about CCW…..late day cross of 3 Million shares does show that something is up in the background…..looking good.
Comment by Frank — May 31, 2018 @ 4:41 am