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by Stockwatch Business Reporter
The TSX Venture Exchange increased by a fraction to 958.76 Wednesday.
Chuck Rifici's Tweed Inc., the qualifying transaction target of Larry Poirier's halted LW Capital Pool Inc. (LWI), has received a licence from Health Canada to produce and supply medical marijuana under the new Marihuana for Medical Purposes Regulations. On April 1, a new law will require Canadians with a medical note to buy their marijuana from an authorized supplier; medical marijuana smokers will no longer be allowed to grow their own personal supply. Tweed is the fifth applicant to receive a licence from Health Canada. The other authorized growers are Bedrocan Canada Inc., CanniMed Ltd., Mettrum Ltd. and the Peace Naturals Project Inc.
On Jan. 2, LW Capital reported its plan to acquire Tweed as its QT. The shell, which has 7.26 million shares outstanding, said it will issue approximately 135.5 million shares to Tweed shareholders, leaving the shell's shareholders with about 5 per cent of the new company. Since then, LW Capital has proposed rolling back its shares up to 1:5 (shareholders will still own about 5 per cent of the new company) and changing its name to Tweed Holdings Corp. Shareholders will vote on the proposals at a meeting on Feb. 20. LW Capital, which currently has six directors -- David Banks, Richard Boadway, Andrew Moffat, Danny Oscada, Mr. Poirier and Deborah Weinstein -- says it might keep up to three directors following the QT. The shell and its target hope to get exchange approval and close this QT before April 1, the date the law changes and Canadians will have to buy their medical marijuana from an authorized private company. This should be welcome news to remaining initial public offering shareholders of LW Capital, who have been waiting for a QT since the company listed in June, 2010.
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