The Globe and Mail reports in its Tuesday, June 6, edition that Cannabis Wheaton Income severed ties Monday with investment dealers Eight Capital and Canaccord Genuity, announcing they "mutually agreed to terminate" their relationship.
The Globe's Andrew Willis writes that as part of the financing, which Cannabis Wheaton continues to market, it disclosed representatives of Eight Capital and Canaccord own about 8 per cent of the company, which currently has a $190-million market capitalization. The personal interest were acquired for pennies a share in a series of deals done prior to the recent launch of an $80-million private placement.
Cannabis Wheaton asked to have its shares halted Monday. Mr. Willis says there has been a steady drumbeat of rumours alleging problems with this transaction, and at Cannabis Wheaton. Much of the speculation focuses on disclosure of personal holdings in Cannabis Wheaton by Eight Capital executives.
Cannabis Wheaton said it "has been the subject of multiple inflammatory false or misleading reports, published primarily on-line by persons seeking to discredit the company."
Cannabis Wheaton said it is in talks with new investment banks. It provides money to upstart pot firms.
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