Source: Stockhouse Editorial
Next Gen Metals, which has seen its stock price jump as high as 73 cents from 5.5 cents in recent weeks, said Wednesday it is adding a marijuana expert to its board of directors.
Junior miners’ increasing interest in the medicinal plant is “symptomatic of how difficult it has become in this sector,’’ Kaiser told the Financial Post newspaper. Kaiser is a mining analysts and publisher of Kaiser Research Online.
He said this reminds him of ploys by resources companies in the late 1990s and early 2000s to jump on the dot-com boom at a time when stock and commodity prices in the resource sector were collapsing in the wake of the Bre-X gold mining scandal.
“To me, it has a smell of an end of times type of mentality,’’ he told The Financial Post. “Where nothing means anything anymore, [and] it’s hopeless to raise money for real stuff in the resource sector.’’
Interest in the medical marijuana industry is tied to the Canadian Government’s decision, via Health Canada, to allow licensed commercial growing of medical marijuana, starting on April 1. U.S. states, including Colorado and Washington are moving to legalize cannabis.
Out of the 1,750 resource companies tracked by Kaiser, 800 have less than $200,000 in the treasury and nearly 700 have negative working capital, he told the Post newspaper.
“What’s happening is medical marijuana is a concept that everyone can understand….It’s kind of like this bubble thing, for the moment,” he said.