Publicly-traded Cannabis Industry Companies

[superdog]

Originally Posted by SMD

Agree on the policy completely. How people can be anti Mj but perfectly okay with alcohol is beyond my comprehension.

Agree. It’s truly difficult to understand.

But while a proponent of the substance, I’m also hoping to make some money. And I still truly believe it’s going to someday be a big deal.

[cornerstore]

New rules and packaging restrictions http://business.financialpost.com/ca...nnabis-growers

[mcorliss]

There has been some scuttlebut in a few recent articles about some of Aphria’s largest shareholders and the the merchant banking firm who arranged all of their bought deals. That particular firm, Delavaco Capital in Ft. Lauderdale, FL has a checkered past and seems to be associated with some other less than savory companies, including Riot Blockchain. Upon reading the article, and confirming the links on Delavaco’s website, I’ve decided to sell all of my Aphria. It may end up being a kneejerk reaction, but I’m not taking any chances. Unfortunately, I personally am way off my highs on the stock, but still somewhat positive, and do not want to take any chances with the black cloud hanging over the stock.

Though I hate Seeking Alpha, the information seem to check out, and since there are other good cannabis cos out there, I think take money off the table, and seeing how things shake out is the prudent course of action with this situation, until it is proven to not be true.

https://seekingalpha.com/amp/article...ra-acquisition

[superdog]

^^^ oh boy.....

[superdog]

Fwiw. I’m holding. I’m down and I’m staying in.

[DLVEGA]

Hopefully Aphria can just drop the Nuuvera deal.


Sent from my iPhone using Tapatalk

[Mick8moses]

I'm dropping too I'm to far down the rabbit hole... Leaving my other positions.. I'll come back in lower if it shows some life.

Sent from my Nexus 6 using Tapatalk

[mcorliss]

Normally, I’d pooh pooh the article as it was written by a short-seller, but the association with Delavaco Capital, their Merchant Banking firm that raised all their bought deals, is somewhat troubling considering Delavaco’s ties to Riot Blockchain and its CEO.

There was another article a few weeks ago that tied Delavaco to some stock promoters that have ownership stakes in lots of lousy companies. To me, that is kind of uncomfortable given my previous 160,000 share Aphria position. Just not going to take a chance given the situation, at least until it is disproven or explained by the company.

Damn shame as Aphria seemed to be a very well run company, but if these story is true, it could get punished severely at some point, and I am not willing to take that chance right now. Better to take money off the table until things fully shake out. Just a suggestion.

Here is the other tangentially related article that implicates Aphria’s underwriter with having ties to notorious stock promoters/manipulators.

http://sharesleuth.com/investigation...to-tout-stocks

Cannabis is going to be huge, but the true source of many company’s seed capital money is rather murky. Not the most comforting scenario. I suspect that the government is also concerned given a recent statement that after the June 7th parliament vote, they are going to release funding rules so they can identify the true source of funds...especially with a large amount coming from offshore. Potential criminal elements???

Anyway, I think taking a short breather from the stock is not a bad idea if you are likewise uneasy about these potentially unscrupulous ties. As always, good luck, and be safe out there.

[BNA/LION]

Article on APHQF... That Sucks!

[superdog]

Originally Posted by mcorliss

Normally, I’d pooh pooh the article as it was written by a short-seller, but the association with Delavaco Capital, their Merchant Banking firm that raised all their bought deals, is somewhat troubling considering Delavaco’s ties to Riot Blockchain and its CEO.

There was another article a few weeks ago that tied Delavaco to some stock promoters that have ownership stakes in lots of lousy companies. To me, that is kind of uncomfortable given my previous 160,000 share Aphria position. Just not going to take a chance given the situation, at least until it is disproven or explained by the company.

Damn shame as Aphria seemed to be a very well run company, but if these story is true, it could get punished severely at some point, and I am not willing to take that chance right now. Better to take money off the table until things fully shake out. Just a suggestion.

Here is the other tangentially related article that implicates Aphria’s underwriter with having ties to notorious stock promoters/manipulators.

http://sharesleuth.com/investigation...to-tout-stocks

Cannabis is going to be huge, but the true source of many company’s seed capital money is rather murky. Not the most comforting scenario. I suspect that the government is also concerned given a recent statement that after the June 7th parliament vote, they are going to release funding rules so they can identify the true source of funds...especially with a large amount coming from offshore. Potential criminal elements???

Anyway, I think taking a short breather from the stock is not a bad idea if you are likewise uneasy about these potentially unscrupulous ties. As always, good luck, and be safe out there.

The vast majority of the wealth of “American royalty” families comes from murky ties.

I’m no theif. And I’m no saint. I live my life with honor and integrity.

This is an industry that was founded on a platform of what is still largely an illegal drug. I’m not going to lose any sleep over how the industry and one of its current leaders was built.

If I can profit on it, I’m good. I’m currently down. If I sell, I lose. I’d rather ride it out and see where it goes. I only invested what I’m comfortable losing. I’d rather lose it that way, than pull out now.

I’m staying in.

And I still appreciate all of your insight and posts. It’s a game that we all play. If any of use lose, it’s on us. We are all big boys and girls.

[roaddog359]

I dont see where this changes the fundamentals of the company and we are getting too close to legalization to sell and take any losses now. I am holding long, as I think we will be on the upswing before long. Of course I dont have near the share that Mcorliss has. I agree with Mcorliss and think a short seller is just trying to raise a red flag hoping people will bite.

[1st amg]

Oh well, I am B@ll$ deep on this one, not going to sell and lose at this point. Everything will work out in the end.

[mcorliss]

Originally Posted by roaddog359

I dont see where this changes the fundamentals of the company and we are getting too close to legalization to sell and take any losses now. I am holding long, as I think we will be on the upswing before long. Of course I dont have near the share that Mcorliss has. I agree with Mcorliss and think a short seller is just trying to raise a red flag hoping people will bite.

Normally, I’d agree on that point, but the group behind every one of Aphria’s capital raises seems a little shady, and further digging revealed other connections to the company.

Every capital raise for Aphria was arranged on a bought deal basis by Delavaco Capital, likely from either hedge funds/family offices...OR...potentially from organized crime elements via offshore tax havens. Even the Canadian government does not know the source of the capital for most cannabis companies, and is working up rules to discover how they were/are funded.

Further digging revealed that the CEO of Riot Blockchain, John O’Rourke, a well known stock manipulator, has financial ties to the Defrancesco family that owns Delavaco Capital. Riot Blockchain, along with Aphria, Liberty Health Sciences, Nuuvera, and Scynthian Biosciences (all owned by Aphria) are in Delavaco Capital’s portfolio. Several of those companies are also tied in the Serruya Family that owns Pinkberry, Jamba Juice, and several previously under-performing frozen food franchise operations. When Aphria was sort of forced to downsize their U.S. holdings in Arizona to satisfy new Toronto Stock Exchange requirements regarding U.S. cannabis operations, none other than the Serruya family, stepped up to buy them with a very complicated (not necessarily arm’s length) purchase structure, which was coincidently arranged by Delavaco Capital.

For me, this just sounds too incestuous to be completely on the up and up. I think Aphria is probably an amazing company, but their association with Delavaco makes me rather uncomfortable...so much so, that I just sold all 160,000 shares this afternoon. Though disappointed to be off from my all-time high on my Aphria position, I am still grateful to have made plenty by buying most of it much earlier in Summer/Fall. Hence, I’m not going to F around when my gut tells me something is not exactly copacetic.

Anyway, my point is, I love the cannabis space, and I think it will be HUGE ultimately, but given my extreme Aphria concentration, I was not going to hold on with such prominent red flags hanging over the company’s head. Just not worth the potential losses that could result from a TSX investigation.

Instead, I plan to take a quick break, re-evaluate the other major cannabis players, and re-commit at some point via a company with fewer potential conflicts. Not sure which company that will be yet given the potential for others to be in a similar situation.

The reality is, as eloquently stated by SuperDog, you have a formerly illegal industry where many early players were starved for capital and probably raised seed funding from some less than stellar sources. Consider it growing pains, but now that things have blown up to be this huge globally, there will be much greater scrutiny going forward. My point is, trading some Aphria money into Canopy, Cronos, CannTrust, Emerald Health Therpeutics, or Hydropothecary may be a better option at the moment until more info is known about whether anything untoward is actually related to its association with Delavaco Capital. Anyway, those are my thoughts and that’s how I’m probably going to play it.

[superdog]

^^^

If I had that kind of money on the line, I’d be out too. No question. I’m just playing around in comparison. In fact, there is no comparison.

Please don’t be shy with what you decide, when you decide, to put some back in.

[Flyinghunter]

Does anyone use ETF's to play this sector?

[Marciano490]

Nobody with the Balzac quote?

I’d been meaning to ask why Canopy was outperforming Aphria lately. Guess maybe we know.

[mcorliss]

Feeling like broader stock market and cannabis stocks could both re-test February lows. Lots of negative sentiment here.

[superdog]

Originally Posted by mcorliss

Feeling like broader stock market and cannabis stocks could both re-test February lows. Lots of negative sentiment here.

Long term game for me brother.

[Brenngun]

Originally Posted by mcorliss

Feeling like broader stock market and cannabis stocks could both re-test February lows. Lots of negative sentiment here.

Thanks for posting the recent info. Your not obligated to do it so I do appreciate that you do. I've been in it expecting to hold for the long term but this info is troubling. Jumped out of APH this morning at essentially a wash except the $10 the trading fee. Will sit pat for now.

Originally Posted by Flyinghunter

Does anyone use ETF's to play this sector?

I have one in my current holdings but it's not growing so far this year.

[mcorliss]

A major reason for today’s Canadian cannabis stock weakness:

http://420intel.com/articles/2018/03...e-senate-today

Conversely, in the U.S.:

http://420intel.com/articles/2018/03...rotect-medical

[Mosco]

http://www.cpac.ca/en/direct/sen6/15...nate-audio-66/

Link to live senate hearing regarding the bill

[520Matt]

Mcorliss do you like adding more Cronos here? it's pricing at it's offering

[mcorliss]

Originally Posted by 520Matt

Mcorliss do you like adding more Cronos here? it's pricing at it's offering

Only if the 2nd reading of C-45 passes tonight. Would not take a chance prior to the vote. Likely to pass, but sounds much tighter than anticipated. If it fails to pass the 2nd reading vote, it will be catastrophic for the sector.

[Lordofrolex]

Im to far commited in Aphria at the moment. Im going to try to ride it to the Canadian Rec Legalization. Hopefully the inflation of that will put me in the positive and ill probably get out at that point. Buy myself a new watch.

[superdog]

Originally Posted by Lordofrolex

Im to far commited in Aphria at the moment. Im going to try to ride it to the Canadian Rec Legalization. Hopefully the inflation of that will put me in the positive and ill probably get out at that point. Buy myself a new watch.

I’m right there with you.

[Mosco]

Passed...

[1st amg]

Originally Posted by Mosco

Passed...

Phew, I was listening on the live stream...passed 44-29, hopefully a little rebound tomorrow.

[mcorliss]

Yep, good news, or at least not catastrophic news.

http://www.cbc.ca/news/politics/gove...vote-1.4588560

[superdog]

Yes!!!!!!


After today, I am thrilled for the good news.

[Gaijin]

Big “phew” from me too..