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Old News release fro 2019, but I think worth posting.


Cannabis Investing
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The Labourers' Pension Fund of Central and Eastern Canada, Oakville, Ontario, has made a C$25 million ($18.8 million) investment into WeedMD, a cannabis company that is also based in the province, a spokeswoman for the fund confirmed.

The C$8 billion multiemployer pension plan's investment into WeedMD is part of transaction, in which WeedMD, a firm that produces and distributes cannabis to both the medical and adult-use markets, acquired Starseed Holdings, a company that provides cannabis to insured patients through drug benefit plans, the spokeswoman said in an email. The acquisition is valued at about $78 million, WeedMD said in a Nov. 29 press release.

"As consideration for the acquisition of all of the issued and outstanding shares of Starseed, WeedMD will issue 71.8 million shares, which have a total equity value of $78 million, to Starseed shareholders upon close of M&A transaction. The concurrent $25 million equity investment by LPF is separate to these amounts," the pension fund spokeswoman wrote.

WeedMD CEO Keith Merker said Monday in a letter to shareholders posted on the company's website that "through the combination of cash on Starseed's balance sheet and the new investment from LPF, WeedMD has secured $42 million of fresh capital."

With its C$25 million investment in WeedMD, the Labourers' Pension Fund of Central and Eastern Canada will own 29% of the cannabis company, Mr. Merker said.

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The boston beer deal, and a huge pension fund backing this company, Guess what THC infused beverages those union workers are going to consume, when it supports their pension fund?

If a huge union  pension fund invested millions in this company to fund their retirement, well, I decided, maybe I should too. so I bought some shares. Not a lot, but a little, and I added some today.

I asked myself why did a pension fund invest so much in this company?

What is it going to do with the shares long term? dump them when it goes up? or keep them, expecting it will pay a dividend down the road?

So, I started thinking,hmm, I know its common for large share holders to be on board of directors, so I looked to see if there was a connection to that pension fund,to any board members.  I saw the BIO's of the board of directors, and that impressed me so much, I thought there is no need for representation for the pension fund on the board.

I think, I am going to watch this one over the years, maybe add more. I put some shares in my SEP IRA.

 

 


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D. H. Taylor
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@cannabis-investing thanks for this.  Yesterday, I did a private Zoom call.  And, one of the things we talked about was how a lot of people rushed in to cannabis investing and are sitting on their hands.  They won’t buy more stocks until the price levels they’ve initially entered are cleared.  That is a big hurdle to cross considering some are in ACB & CGC.


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Cannabis Investing
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Thanks D.H.

I think you are right about the people holding back.

I think it's like "Cutting off their nose to spite their face"

You mention over and over,, the once in a lifetime opportunity,, and you lay it out so simply.

"You can lead a horse to water, but you can't force it to drink"

I think, by the time those people holding back, decide to jump in, it will be too late. I think they will likely find themselves competing with short sellers trying to cover their shorts.  JMHO.

 

 


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