The Globe and Mail reports in its Saturday edition that the hot market for Canadian pot plays has all the hallmarks of the boom times in junior mining, when unproven companies attracted big valuations, insiders loaded up on stocks for pennies ahead of deals and investment bankers took personal interests in companies they advised. The Globe's Andrew Willis writes that Bay Street is all abuzz on Cannabis Wheaton Income ($1.17), which provides cash to start-up grow-ops in exchange for a slice of future sales. It has struck streaming deals with 14 fledgling pot producers. In the past two months, Cannabis Wheaton's stock soared from pennies to more than $3 as it pitched its plan to investors, raising money in deals led by Eight Capital and Canaccord Genuity. Brokers at both firms loaded up on shares and warrants at prices of less than three cents. "Representatives" at the two brokerages own 13.1 million shares and the same number of warrants. Mr. Willis notes Cannabis Wheaton's business plan is unproven. The upstart producers it is backing will face competition from proven, deep-pocketed rivals. The fast-money crowd that fuelled the boom and bust in junior mining is now up to its eyeballs in this "high-risk" sector.
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