WHITEFISH, MT / ACCESSWIRE / August 27, 2014 / Affinor Growers Inc. (OTC: RSSFF) (CNSX: AFI), a diversified company
focused on growing high quality crops such as romaine lettuce, spinach,
strawberries, and high quality medical marijuana, has taken a number of
steps over the past few months to improve both its operational and
financial condition. Combined with its vertical growing technology,
management hopes to unlock significant shareholder value.
In this article, we will take a look at the company’s operational
expansion into both the strawberry and medical marijuana industries, as
well as how its DTC eligibility could help improve volumes and lower
transaction costs for investors.
Growing Operational Footprint
Affinor Growers purchased
a 45-acre agricultural property in St. Chrysostome, Quebec, Canada for
$340,000 in July where it plans to build a state-of-the-art strawberry
growing facility. Management plans on leveraging the robust and
expanding demand for strawberries, along with incentives for
agricultural job creation in Quebec, to generate long-term shareholder
value with the project.
In addition to its strawberry operations, the company announced the acquisition
of a 49% interest in Good to Grow LLC in August. Affinor will invest
US$600,000 to improve the U.S.-based medical marijuana dispensary and
grower’s existing facility and bring it up to the strict standards
required by Health Canada for growing and dispensing marijuana to
eventually sell north of the border.
These two lines of business provide investors with diversified
exposure to two rapidly growing markets, along with immediate revenue
from the U.S.-based operations of Good to Grow LLC. In addition to these
businesses, the company announced
that it purchased a 10% interest in Margaux Red Capital (TSX-V: MXC) in
August as a strategic investment in the way the firm is organized.
Stronger Financial Footing
Affinor Growers became DTC eligible in August, which represents an
important step in making its stock more accessible to investors. The
Depository Trust Company ("DTC") facilitates the electronic settlement
of common stock transfers in the United States. With over $35 trillion
worth of securities on deposit, stocks that aren’t DTC eligible tend to
have less liquidity, particularly for larger investors.
"The ability to have AFI shares traded electronically in the U.S. is
more convenient and lowers the costs incurred in trading shares," said
Affinor Growers Executive Chairman Nick Brusatore. "With our shares now
trading electronically, investors can instantly benefit from greater
liquidity and faster execution speeds. We are excited that new investors
that may have been restricted … can now participate."
Companies that have received DTC eligibility often experience higher
trading volumes in their stock given the additional accessibility and
availability of shares for trading. Most large U.S. broker-dealers and
banks are DTC participants, which means that they are also accustomed to
trading in DTC eligible stocks. In the end, the move is very
significant for the firm moving forward on a financial level.
Affinor Growers stands at a unique point in its corporate history.
After acquiring its growing properties, management is ready to begin
generating near-term revenue while maintaining long-term growth
potential. The company’s DTC eligibility means that these efforts could
be appreciated on a greater level due to the market’s enhanced ability
to buy and sell the stock with low transaction costs.
Investors in Canada’s medical marijuana space, including companies
like Tweed Inc. (OTC: TWMJF) (TSX-V: TWD), may want to take a closer
look at the company given its acquisition of Good to Grow LLC.
Meanwhile, investors in traditional agricultural stocks, like Farmland
Partners Inc. (NYSE: FPI), may want to take a closer look at the stock
given its play in strawberries and other cash crops.
For more information, see the following resources:
- Company Website
- OTC Markets Profile
Except for the historical information presented herein, matters
discussed in this release contain forward-looking statements that are
subject to certain risks and uncertainties that could cause actual
results to differ materially from any future results, performance or
achievements expressed or implied by such statements. Emerging Growth
LLC is not registered with any financial or securities regulatory
authority, and does not provide nor claims to provide investment advice
or recommendations to readers of this release. Emerging Growth LLC may
from time to time have a position in the securities mentioned herein and
may increase or decrease such positions without notice. For making
specific investment decisions, readers should seek their own advice.
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SOURCE: Emerging Growth LLC