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by Stockwatch Business Reporter
The Canadian Securities Exchange Composite Index fell 4.05 points to 385.89 Wednesday. Tetra Bio Pharma Inc. (TBP) rose 6.5 cents to 54 cents on 10.96 million shares after the company's delta-9 THC drug was granted orphan drug designation by the United States' Food and Drug Administration. (Orphan drug designation is granted to drugs that are used to treat rare diseases or conditions, which is defined as one that affects fewer than 200,000 people in the U.S.) The delta-9 THC drug is used to treat hepatocellular carcinoma, a type of liver cancer. Tetra is planning to start a second phase of clinical trials for the drug in the first quarter of 2020.
Organigram Inc. (OGI) fell 37 cents to $3.42 on 2.73 million shares after establishing an at-the-market equity program that allows the company to issue up to $55-million Organigram shares. (In an at-the-market equity program, the company's shares are sold at whatever the market price is at the time of the financing.) The company will have until Dec. 25, 2021, to issue shares under the program. Organigram intends to use the proceeds (if it does choose to raise money) to finance projects, for working capital and to repay debt. Like many cannabis companies recently, Organigram seems to plan on raising money when it can rather than waiting until it truly needs cash. The cannabis producer already had working capital of $152.4-million as of its fiscal 2019 year-end (Aug. 31, 2019). That working capital overstates the company's flexibility a bit, as it (the working capital) is being propped up by inventory of $93.1-million.
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