Shares of Agraflora Organics International Inc (OTCMKTS:PUFXF) have been on a rampage over the past 6 trading sessions, and the move appears to be related to an update from the company on recent activities and to its previously announced Equity Participation and Earn-In Agreement with Delta Organic Cannabis Corp. for up to a $40 million investment at a price of approximately $0.45 per share for the retrofit of a large-scale medical cannabis cultivation operation in Delta, British Columbia.
According to the release, concurrently with the retrofit of the 2,200,000 square foot greenhouse complex located in Delta, BC, the Company has reached several important milestones in the past four months, including a $20 million investment received from DOCC for the previously announced Equity Participation and Earn-In Agreement and a Cannabis supply agreement signed with Namaste Technologies for up to 25,000,000 grams of cannabis or 10% of total production from the Delta Greenhouse Complex for $4 per gram.
Agraflora Organics International Inc (OTCMKTS:PUFXF) bills itself as a company that operates in the cannabis industry.
The company was formerly known as PUF Ventures Inc. and changed its name to AgraFlora Organics International Inc. in November 2018. AgraFlora Organics International Inc. was incorporated in 2004 and is based in Vancouver, Canada.
According to company materials, “AgraFlora Organics International Inc. is a growth oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London, ON and is a joint venture partner in Propagation Service Canada and its large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The Company has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry.”
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As noted above, PUFXF just provided an update to recent corporate activities and to the previously announced Equity Participation and Earn-In Agreement with Delta Organic Cannabis Corp. for up to a $40 million investment at a price of approximately $0.45 per share for the retrofit of a large-scale medical cannabis cultivation operation in Delta, British Columbia.
The chart shows 89% added to share values of the stock over the past month of action. Furthermore, the company has registered increased average transaction volume recently, with the past month seeing 390% above its longer-run average levels.
“We have made considerable progress over the past four months as we moved from an AMCPR applicant to an innovative high-quality licensed cannabis producer,” said Derek Ivany, President and CEO of AgraFlora Organics.
“We continue to move aggressively to prepare the Delta Greenhouse Complex for its first cannabis crop. We are focused on installing an advanced security system along with state-of-the-art lighting, watering and air purification technology to meet and exceed all regulatory and industry standards. We are also pursuing cannabis supply agreements with domestic and international customers in preparation for the first crop to be planted in Delta, BC. I would like to thank the project team for all their work and effort to keep the conversion of the Delta Greenhouse Complex on schedule and on budget. When at full capacity the Delta facility will be the second largest cannabis production site in Canada.”
Earning a current market cap value of $172.2M, PUFXF has a store ($1.4M) of cash on the books, which is balanced by about $1.6M in total current liabilities. One should also note that debt has been growing over recent quarters. 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 $PUFXF 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 $PUFXF, either long or short, and we have not been compensated for this article.