We could be seeing an interesting story setting up for shares of Cannabis Wheaton Income Corp (OTCMKTS:CBWTF) right now. The stock recently fell under the 200-day simple moving average and then found some strong supportive bids. The narrative here is shifting in some pretty interesting ways of late, including a landmark shareholder vote and a coming change of the company’s name. It’s a wholesale rebranding, and it could spark some new interest.
Specifically, the company just announced that the Company intends to change its name to Auxly Cannabis Group Inc. According to the release, “The proposed Name Change is subject to the acceptance of the TSX Venture Exchange and the approval of the Registrar of Companies for British Columbia. In conjunction with the proposed Name Change, the Company’s share capital would be issued under new CUSIP/ISIN numbers and it is expected that the Company’s stock trading symbol will be changed from CBW to XLY. The Company expects the Name Change will be completed on or about June 8, 2018.”
Cannabis Wheaton Income Corp (OTCMKTS:CBWTF) trumpets itself as an investment company that seeks to provide investor returns through streams and capital appreciation in the Canadian cannabis industry.
The company operates as a cannabis streaming company. It provides funding for cannabis facility expansions, operations, and initial construction in exchange for minority equity interests and a portion of the cultivation production.
The company was formerly known as Knightswood Financial Corp. and changed its name to Cannabis Wheaton Income Corp. in May 2017. Cannabis Wheaton Income Corp. was incorporated in 1987 and is based in Vancouver, Canada.
According to company materials, “Wheaton Income is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Our mandate is to facilitate growth for our partners by providing them with financial support and sharing our collective industry experience. Our partners all have different visions, voices and brand values, and all share a common goal—to build a world-class industry based on ethics, diversity, quality and innovation.”
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The chart shows 8% during the past week in terms of shareholder gains in the name, but that move comes in the context of a larger bearish trend. What’s more, the company has benefitted from a jump in recent trading volume to the tune of 39% above its longer run average levels.
In addition, the company also just announced the results of voting at its annual and special meeting of holders of common shares of the Company, which was held on June 1, 2018, in Toronto, Ontario. As noted in that release, “The total number of common shares represented by Shareholders present in person and by proxy at the Meeting was 70,691,519, representing 16.37% of the Company’s issued and outstanding common shares.”
The company’s Shareholders voted to re-elect each of the directors of the Company until the next following annual meeting. In addition, the Shareholders also approved: (i) the audited annual financial statements of the Company for the year ended December 31, 2017; (ii) the re-appointment of MNP LLP as the auditor of the Company for the ensuing year at the remuneration to be fixed by the directors; and (iii) by resolution, the equity incentive plan of the Company without variation.
At this time, carrying a capital value in the market of $561.9M, CBWTF has a significant war chest ($160M) of cash on the books, which stands against about $5.4M in total current liabilities. The company is pre-revenue at this point. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $CBWTF 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 $CBWTF, either long or short, and we have not been compensated for this article.