A potential stock for the radar to close out the year is CannaRoyalty Corp (OTCMKTS:ORHOF). Shares have busted under key moving average support, but held on important support at the $4/share level. We would note key resistance at a glaring $5 level at this point. Given the pivot off support, the trade back to check this level shouldn’t be disregarded. To further flesh out the story, the company just announced the results of the early exercise of its outstanding warrants and provided shareholders with an update on its investment in Alternative Medical Enterprises LLC.
According to the release, “As previously announced, on November 23, 2018, the expiry date of the Company’s outstanding common share purchase warrants issued pursuant to a warrant indenture dated April 13, 2018 (the “Warrants”) was accelerated to December 14, 2018. As of the close of market on December 14, 2018, approximately 99% of the Warrants had been exercised. Subsequent to the exercise of the Warrants, Origin House has approximately 61.2 million common shares outstanding.”
CannaRoyalty Corp (OTCMKTS:ORHOF) trumpets itself as a private equity firm specializing in acquisitions. The firm invests in the legal cannabis sector with a focus on research and intellectual property, consumer brands, and industry infrastructure. It seeks to invest in the United States and Canada. CannaRoyalty Corp. is headquartered in Ottawa, Canada.
The company is doing business as Origin House.
Origin House is a growing cannabis products and brands company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands.
The Company’s foundation is in California, the world’s largest regulated cannabis market, where it delivers over 130 branded cannabis products to the majority of licensed dispensaries.
Origin House’s brand development platform is operated out of five licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. The Company is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke.
Origin House’s Common Shares currently trade on the Canadian Securities Exchange (CSE) under the symbol “CRZ” and will trade under the symbol “OH” effective October 23, 2018. Origin House is the registered business name of CannaRoyalty Corp.
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As noted above, ORHOF just announced the results of the early exercise of its outstanding warrants and provided shareholders with an update on its investment in Alternative Medical Enterprises LLC. In all, recent action has seen just shy of -10% stripped out of share pricing for the company in the past week.
In addition, the name has witnessed a pop in interest, as transaction volume levels have recently pushed 30% beyond its prior sustained average level.
Marc Lustig, Chairman and CEO of Origin House commented, “Our opportunity set today is larger than it has ever been and we are very well capitalized to continue to execute. We intend to use the additional funds from this warrant exercise for investment into our business in California and expansion into new selective markets.”
At this time, carrying a capital value in the market of $259.72M, ORHOF has a significant war chest ($58.2M) of cash on the books, which stands against about $21M in total current liabilities. One should also note that debt has been growing over recent quarters. ORHOF is pulling in trailing 12-month revenues of $9.1M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 753.4%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $ORHOF 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 $ORHOF, either long or short, and we have not been compensated for this article.