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Wednesday, November 25, 2020

Marapharm Ventures Inc (OTCMKTS: MRPHF) Could Be Ripe to Move as Cannabis M&A Fever Heats Up

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It’s no secret that the monsters of the cannabis space have been back on the move in a big way over recent weeks, which paves the way for smaller players like Marapharm Ventures Inc (OTCMKTS: MRPHF) to catch a major bid as well. That narrative is certainly helped along by non-toxic capital flows. As a case in point, the company just announced that the non-brokered private placement unit offering announced in a news release on May 17, 2018, for gross proceeds of $4,000,000 has closed oversubscribed for total gross proceeds of $4,500,000.

According to the release, “the non-brokered private placement of 7,500,000 Units at CDN $0.60 per Unit, the Unit consists of one common share of the Company and one-half of one common share purchase warrant of the Company. Each warrant entitles the holder thereof to purchase one Common Share of the Company at an exercise price of $0.70 for a period of 12 months from the date of issuance of the warrant.”

Marapharm Ventures Inc (OTCMKTS: MRPHF) is a development stage medical marijuana company that focuses on operating in the medical and recreational marijuana industry in Canada and the United States. The company was formerly known as Capital Auction Market Inc. and changed its name to Marapharm Ventures Inc. in August 2014.

Marapharm Ventures Inc. was incorporated in 2007 and is headquartered in Kelowna, Canada. Marapharm Ventures Inc. is a subsidiary of Whitewater Resources Ltd.

Moreover, the company’s business model is to invest in, acquire and or do start-up ventures in the medical and recreational Marijuana space in North America and selected countries throughout the world.

According to company materials, “Marapharm is a publicly traded company investing in the medical and recreational cannabis space, since 2014. Marapharm has rapidly expanded to include having cultivation, production and dispensary locations in the key North American states of Washington, Nevada, and California, and are seeking expansion opportunities worldwide.”

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The chart shows basically flat action during the past week in terms of shareholder gains in the company. That said, MRPHF has a history of dramatic rallies and could be forming a key inflection as the cannabis space catches fire here in May. What’s more, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running exceeding 250% beyond what we have been seeing over the larger time frame.

According to the release, the net proceeds raised from the deal are set to be applied toward a range of tasks, including “further development of the Company’s Las Vegas project, further development of the Company’s project in Washington State, and further development of the Company’s projects in California and general corporate purposes.” The release goes on to note that common shares and warrants issued pursuant to the non-brokered offering are actually going to be subject to a four-month hold period, which certainly helps over the short-term where staving off dilution fears are concerned.

“We are weeks away from entering production at our newly built facilities in Nevada. 2018 will be the first revenue-producing year for the Company, we are passionate about our future and excited to achieve these significant milestones,” Linda Sampson, CEO.

Now commanding a market cap of $50.5M, MRPHF has a significant war chest ($3.3M) of cash on the books, which compares with virtually no total current liabilities. The company is pre-revenue at this point. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $MRPHF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $MRPHF, either long or short, and we have not been compensated for this article.

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