Medical Marijuana Grower Tweed Inc. To Start Trading Shares Friday

Posted: 04/03/2014 11:55 am EDT Huffington Post
Investors will be able to buy shares in Canada’s first publicly-traded medical marijuana company starting Friday. Tweed Marijuana Inc., one of 12 producers licensed so far by Health Canada, expects its shares to begin trading on the Toronto Venture Exchange when the opening bell rings Friday. It will be listed under the stock ticker TWD. The company has executed a reverse takeover of shell company LW Capital Pool Inc., a deal in which Tweed bought the public company in order to bypass the lengthy and complex process of undergoing an initial public offering. About 65 per cent of the shares will be available to the public, and are expected to start trading at 85 cents, said chairman Bruce Linton. (more)

Penny stock mining and oil companies have jumped at the chance to be associated with medical marijuana, a phenomenon that has sent their share prices soaring at the mere mention of the herb. But Tweed will be the first Canadian company with an actual business that is federally authorized to earn revenue from marijuana that is listed on a public stock exchange. The U.S., where medical marijuana is expected to become a $10-billion industry, already has an established market for medical marijuana stocks. Share prices have been on fire this year.
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New Medical Marijuana listing Tweed (V.TWD) opens with $400m+ market cap, drops early Chris Parry, Stockhouse.com  Friday April /03
The much awaited TSX medical marijuana listing, Tweed (TSX:V.TWD, Stock Forum) opened with heavy buying at the opening of the market Friday, with the stock breaking out of the gate at $4.60 and quickly jumping to $4.75, on 2 million plus volume in just the first 15 minutes. But with plenty of shares available and a wait-and-see approach from many investors, the stock soon rolled down to $2.60, giving the company an incredible market cap of $442 million before a gram has been sold. The company, which has a 50,000 sq. ft. growing facility under construction in Smith Falls, Ontario, has plenty of money behind it and is currently buying stock from groups licensed under the old Health Canada system. Tweed expects to sell as many as 80 strains when it begins posting out orders.