Time to Buy? Penny Stock, Cansortium (CSE: TIUM.U), Poised for Massive Growth, Raises $56 million in IPO
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Do you remember the days when Canopy Growth Corp (NYSE: CGC) was merely a penny stock? If you had a time machine, would you go back and purchase CGC at less than $5.00/share?
Miami, Florida-based Cansortium Inc. (CSE: TIUM.U) was mostly unchanged in the second full day since raising $56 million in its initial public offering at US$2.00 per unit. Its stock closed at $1.97.
But it’s poised for massive growth.
Cansortium is a medical cannabis company operating in highly populated markets, focused on delivering cannabis from nursery to lab to shelf. Operating under the brand Knox Medical, it operates 4 cultivation facilities and 11 dispensaries in Florida, Texas, Puerto Rico and Pennsylvania.
For the period ending September 2018, it reported $2.9 million in revenue—roughly a $12 million per year pace—and $5 million in cash. It had gross profit of $1.3 million and an operating loss of $5.9 million. These results are unaudited.
With 11 dispensaries operating, and roughly 12 million per year in revenue, it is now generating a bit more than $1 million/year per dispensary. But that may likely change.
Through its subsidiaries, Cansortium is licensed to produce and sell medical cannabis in Florida, Texas and Puerto Rico, and is licensed to sell (not produce) medical cannabis in Pennsylvania. All substantial markets.
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It also has international growth plans in process. It has secured licensing in Colombia to develop and operate a seed bank and to produce, sell and export medical cannabis. It also secured a distribution agreement in Brazil. Through a subsidiary, it is licensed and operates an industrial hemp production in Canada, and is in the process of acquiring a license to produce and sell cannabis in Canada.
These pending licenses suggest to investors that it will have room to grow its revenue, potentially raising its share price.
Each unit of the IPO consists of one common share and one-half of one warrant. The common shares started trading on March 22 on the Canadian Securities Exchange under the symbol “TIUM.U” and the Warrants under “TIUM.U.WT”. Each warrant entitles the holder to buy one share at US$2.40 for 24 months.
The proceeds will be used for expansion of its medical cannabis operations in Florida, Puerto Rico, Texas, Pennsylvania, Michigan, Colombia and Canada, for repayment of debt and for general working capital purposes.
About Cansortium:
A culture designed to thrive
We accept nothing less than the very best from ourselves at any given time. This culture is what ensures that we consistently deliver the highest quality cannabis products. We manage to excel at our jobs while placing equal emphasis on our own happiness and well-being. That balance is what makes us thrive.
A deep-rooted passion for excellence
Making our medicine doesn’t start and end with the plant. So much science, research, and understanding goes into the process before the first seed is put into the ground. We love our jobs and we love what we see in the future of cannabis.
Regulatory Expertise & Bar-Raising Compliance:
Extensive regulatory expertise enables Cansortium to navigate evolving medical cannabis regulatory frameworks strategically positioned for rapid growth in highly-regulated jurisdictions.
First-Mover Advantage:
Strategic first-mover in large, regulated markets with high barriers to entry, including Florida, Texas, Pennsylvania and Puerto Rico.
Capital-Efficient, Scalable & Predictable Platform:
As a vertically-integrated, and technologically-advanced business platform, Cansortium’s proprietary production methodologies are both scalable and replicable.
International Partnerships:
In addition to its US-based operations, Cansortium is in the process of expanding into Canada, Colombia, Argentina, Australia, and Europe.
For more information, visit their website at www.cansortium.com.
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Source Cansortium press release
Time to Buy? Penny Stock, Cansortium (CSE: TIUM.U), Poised for Massive Growth, Raises $56 million in IPO
