Source: Seeking Alpha – Anthony Cataldo, Special situations Jan. 26, 2015 5:10 AM ET |
- A stronger dollar makes vacations in countries with weaker currencies less costly; mergers and acquisitions, too.
- The Canadian dollar and the Canadian MMPR makes U.S./Canadian alliances particularly, strategically beneficial for marijuana firms.
- Anticipate a stronger U.S. dollar, relative to the Canadian counterpart, to encourage an increase in Canadian firms’ efforts to access U.S. capital markets.
- Nine Canadian marijuana firms, already accessing U.S. capital markets, are less costly in terms of U.S. dollars.
- One Canadian convert from gold mining is featured, but you should expect (1) lower gold, silver, and energy prices and (2) a stronger U.S. dollar to generate more “converts.”.
The U.S. and Canadian Dollars
Below is the 6 month chart of the U.S. v. the Canadian dollar. The U.S. dollar has increased to $1.24 Canadian dollars. Therefore, from a U.S. perspective, you can “buy Canadian” at about $0.80 on the dollar. From a Canadian perspective, you can “sell American” to generate revenues from a more favorable currency.
Nine Canadian Marijuana Firms
Using July 30, 2014 as the base, and through January 23, 2015, all of these Canadian marijuana firms are less expensive in U.S. dollars:
|Abattis Bioceuticals Corp.||(OTCQX:ATTBF)|
|Bedrocan Cannabis Corp.||(OTC:BNRDF)|
|Highmark Marketing, Inc.||(OTCPK:HMKTF)|
|InMed Pharmaceuticals, Inc.||(OTCQB:IMLFF)|
|GrowPros Cannabis Ventures, Inc.||(OTC:MZRRF)|
|OrganiGram Holdings, Inc.||(OTCQB:OGRMF)|
|Affinor Growers, Inc.||(OTCQB:RSSFF)|
|Supreme Pharmaceuticals, Inc.||(OTCPK:SPRWF)|
|Tweed Marijuana, Inc.||(OTC:TWMJF)|
The remainder of this article provides some background information on GrowPros, a new, Canadian convert from gold mining and exploration to marijuana. This is only one of the possible 9 Canadian firms included in the above table. There are other Canadian marijuana firms, of course, but I have restricted myself to this above handful, already accessing U.S. capital markets.
- GrowPros is a Canadian gold mining and exploration firm had a 52-week low in March 2014, the very same month when the marijuana stocks and sector peaked.
- At least 7 other firms have moved from natural resource and commodity sectors (in decline) to the marijuana sector (in early growth stage) in recent months.
- Canada is rich in and known for natural