While the legal marijuana business is still in its embryonic stage, certain companies are already separating themselves from the pack.
Advanced Cannabis Solutions (OTCQB: CANN) is one of them.
On Mar. 5, the Colorado Springs, Colo-based company that leases growing space and related facilities to licensed marijuana business operators stock volume continued to go through the roof, with 1,203,143 shares changing hands, nearly seven times its three-month average volume of 156,033 shares.
Moreover, CANN's share price closed at $49.00, up $5.88, or 13.84 %, from its closing price of $42.50 the previous day.
In reality, the company has seen its share value moving upward over the last month.
Good News Reaches Critical Mass
The upward trend, which reached its latest critical mass Mar. 5, is being fueled by a spate of positive news coming from the company along with its solid business plan backed by real estate.
On Feb. 20, Advanced Cannabis Solutions said it has signed an agreement to provide comprehensive consulting services to a significant investor group in Canada. This group is involved in the start-up and operation of a large cannabis production operation serving the Canadian medical marijuana marketplace. The contract has a minimum duration of six months and a potential value in the low six figures.
In addition, the company that is headquartered in the middle of one of the first, vibrant legal-marijuana marketplaces in the country has recently been approved for a major line of credit.
These two elements are essential for Advanced Cannabis Solutions to be able to build and equip the facilities it wants to rent to cannabis growers.
In Colorado alone, the medical marijuana market is estimated to be $350 million in size while the legalization of recreational marijuana could expand that figure to over $500 million in 2014 by some accounts. These figures are significantly larger throughout the United States. Some analysts estimate the total market at between $10 billion and $120 billion per year in size, depending on the success of various legalization efforts and the components included in the estimates.
New 30-Million Credit Line
On Jan. 21, Advanced Cannabis Solutions announced that it had established a $30-million credit line.
According to a release, Advanced Cannabis Solutions signed a definitive agreement with Full Circle Capital Corp., a closed-end investment company. The agreement provides that the investment fund will initially provide $7.5 million to the company in the form of Senior Secured Convertible Notes, subject to certain conditions. An additional $22.5 million can be borrowed by Company with the mutual agreement of the company and the investment company.
At least 95% of the loan proceeds will be used to acquire properties, which the company consistent with its business plan, will lease to licensed cannabis growers.
"The six-year loan will be secured by real estate acquired with the loan proceeds, and will require interest-only payments at a rate of 12% per year," the release explained, outlining the agreement.
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Pain Relief without Abuse
Meanwhile, Elite Pharmaceuticals Inc. (OTCBB: ELTP) stock volume is also soaring, with 11,419,883 shares changing hands, more than twice its three-month average volume of 5,318,824 shares.
News on Recent Trial
The surge in volume is being fueled on part by recent positive news coming from the Northvale, N.J.-based pharmaceutical company’s trial on a drug it’s developing that delivers pain relieve without the euphoria associated with opiates, therefore no addiction or abuse.
"We are delighted with the results from our clinical studies and pleased to have confirmation of the formulation for our extended release product, ELI-201, our twice-daily oxycodone product and the progress of the second opioid," stated Elite’s President and CEO Nasrat Hakim, in a written statement. "We are also on track with the manufacturing site transfer of the 12 generic products Elite is adding to the product line. The transfers of these products have been prioritized and we will have additional supplements to file following these first two products,” he added.
On Mar. 5, ELTP’s share price closed at 94 cents up 11 cents from its share price of 83 cents the previous day.
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Lincoln Park Capital Buys 8 Million Shares of Nuvilex
On Mar. 5, Nuvilex, Inc.’s (OTCQB: NVLX) stock volume was robust with 10,469,921 shares changing hands, slightly higher than its three-month average volume of 10,194,108 shares.
Receives $2 Million in Initial Funding
The Silver-Spring-based biotech company optimizing the anticancer effectiveness of cannabinoids announced Feb. 24 that Lincoln Park Capital purchased 8 million in restricted shares of Nuvilex in exchange for an initial $2 million out of $27 million set aside to advance the company's late-phase pancreatic cancer clinical trials.
Much Hype, Little Results
Over the last year Nuvilex has issued a bevy of positive press releases about how it is positioning itself and recruiting and hiring the top researchers in the medical-marijuana field. But so far, the company has not produced any concrete products or services for the industry. Neville’s cannabis business appears to still be in the developmental stage. Still, it has hired the brain power that eventually could make it a real player.
On Mar. 5 NVLX’s share price closed at 42 cents, down 2 cents from its close of 44 cents the previous day.
Find out what could be the best investor’s move when it comes to NVLX by getting the complete report here, or by cutting and pasting the following link in your Web browser:
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