This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

The TSX Venture Exchange fell 15.30 points to 732.63 Tuesday. Riccardo Forno's halted capital pool shell, BFK Capital Corp. (BFK), plans to acquire The Hydropothecary Corp. (THC), a licensed medical marijuana producer, for the shell's qualifying transaction. BFK will roll back 1 for 1.5, leaving it with 1,837,777 postconsolidated shares issued, then issue 44,079,822 postconsolidated shares to THC's shareholders.

THC's production facility is in Gatineau, Que. The company sells marijuana at a higher price than its competitors do: $15 per gram, compared with, for instance, about $7 per gram charged by Canopy Growth Corp. (CGC: $8.25). THC explains that its considerable premium is for high-quality customer service. It offers free next-day, evening and Saturday shipping; it stores its product in glass, not cheap plastic, then wraps the glass container in discreet packaging; and it provides round-the-clock customer service by phone. In its fiscal year ended July 31, 2016, THC lost $3.35-million on sales of $1.87-million, which seems to be a less-than-promising start for its fine service.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS