Cannex Investor Update for June
July 4, 2018
Cannex is a Canadian public holding company (CSE:CNNX) (OTCQB:CNXXF) of high quality US cannabis assets dedicated to premium brands and vertically integrated operations.
Cannex is an emerging multi-state platform providing access to capital, management expertise and expansion opportunities to its portfolio companies. We create value by identifying exceptional companies and enhancing their performance by providing expert capital and operating support to strong management teams. Our approach helps our portfolio companies grow their business, launch new initiatives, make transformative acquisitions and upgrade technologies and systems to support their long-term strategy.
We provide more than just capital. We seek to make the companies we invest in stronger.
Cannex shares closed at C$1.00 on Wed 04 July 2018, up 13.64% since June 1, 2018.
By comparison, the Horizon Marijuana Life Sciences Index (HMMJ) was down 4.4% over a similar period.
|Upcoming events - MJ BizCon Int'l|
August 14-16 at the Metro Toronto Convention Centre. Join Cannex and leaders from around the globe at this conference that focuses on the role of the cannabis global marketplace in the most impactful nation in the industry today.
|Upcoming events - MJ BizCon|
Nov 14-16 at the Las Vegas Convention Center. Join Cannex and leaders from around the globe at the largest Cannabis Conference in the world.
|Cannex Group lists on OTCQB Market with symbol CNXXF|
Cannex Group is pleased to announce that the OTC Markets Group has approved the listing of the Company’s shares on its OTCQB Market under the ticker symbol “CNXXF” and that trading will begin at market open on June 26, 2018
|Cannex Provides Update on 2018 Year-End Financial Report.|
Cannex Capital Holdings Inc. (CSE: CNNX) (“Cannex” or the “Company”) reports that it is preparing its year-end audit for the fiscal year ended April 30, 2018 and expects to file its audited financial statements and management’s discussion and analysis by end of June 2018
|Cannex clarifies Jetty acquisition terms|
Cannex provides the following clarification to the news release disseminated earlier today regarding the acquisition of Ametrine Wellness Inc. dba Jetty Extracts:
|California Dreaming by Roger Fillion|
The Golden State is set to become the Green State – one offering enormous opportunities for marijuana entrepreneurs. By Roger Fillion Marijuana Business Magazine
Founded in 2013, Jetty Extracts is one of the true originals in the California Extracts market. Jetty began its operations in San Diego, California with a focus on craft and innovation while applying a strict adherence to compliance, fiscal responsibility, environmental concerns and community commitment (with a little time for some surfing in between). Today, Jetty's 60-plus employees work in San Diego and the company's 12,000 sq ft Oakland, California headquarters and production facility, utilizing the latest technology to create its additive- and pesticide-free oils including its whole-plant terpene Gold cartridges, Dablicator™ and other products. Jetty maintains a partnership with and 50% ownership in, award-winning toffee edible brand, MindTricks™ and operates The Shelter Project, a standalone non-profit that provides free cannabis to cancer patients.
Northwest Cannabis Solutions is one of the largest recreational marijuana producer/processors in Washington. Our state of the art growing facility features a cutting edge extraction lab, and a world class edibles kitchen. NWCS is known for some of the highest quality products on the market: LEGENDS, PRIVATE RESERVE, MINI Budz, MAGIC KITCHEN edibles, EVERGREEN, EZ VAPE single use vape cartridges, GoldLine concentrates, THCaps infused capsules, and more. With over 150 employees, we are relentlessly devoted to growing, processing, and selling the best possible marijuana products in the state.
Equity Research Highlights - Beacon Securities
BEACON SECURITIES LIMITED – Doug Cooper -
INITIATING COVERAGE – BUY C$1.80 -
Cannex Capital Holdings (CNNX – CSE) is a profitable cannabis-focused New Age CPG company operating in Washington State and upon closing its recently announced acquisition of Jetty Extracts, will establish itself in California – the world’s largest recreational cannabis market (population 40 million). In our view, the recent price of C$1.00 attributes ZERO value to its pending California acquisition, and as such, the current price represents an excellent entry point to generate exceptional upside gains. Based on our FY20 EBITDA forecast of $16.5 million, a target multiple of 15x and an FX rate of $1.3 (company operates in the United States with stock quoted in C$), we arrive at our target price of C$1.80.
Equity Research Highlights - Echelon Wealth Partners
ECHELON WEALTH PARTNERS– Russell Stanley -
SPECULATIVE BUY - C$1.75 TARGET -
Initiating Coverage: We are initiating coverage on Cannex Capital Holdings Inc. with a Speculative Buy rating and 12-month target price of C$1.75/shr, based on an 18.5x EV/C2019E EBITDA multiple applied to our forecasts. Potential catalysts include completion of the Californian acquisition, further M&A, and financial results. All figures are in USD unless otherwise noted.