One of the strongest trends on the cannabis patch over the past several months has been in shares of CannaRoyalty Corp (OTCMKTS:ORHOF). The stock has launched as much as 157% since the middle of December. But now, we are seeing a minor pullback that could represent a fresh opportunity for trend momentum players to get involved for a follow-through move to the upside. To make matters more interesting, the company just announced an update on Sonoma County permit approvals received by the Company’s pending acquiree, California-based cannabis cultivator Cub City LLC and its wholly-owned subsidiary, FloraCal Farms.
According to the release, “Cub City received a Minor Use Permit from the County of Sonoma for cultivation, processing, non-volatile manufacturing, and distribution at its Santa Rosa facility. The MUP was approved by a unanimous vote of the Sonoma County Board of Zoning Adjustments, following a public hearing on March 28, 2019. The appeal period for the Board’s decision ended on April 8, 2019 without any appeal being filed. As previously announced, the Company has signed a binding term sheet for the acquisition of the business of Cub City. The closing of the Acquisition is expected to be in Q2 2019. FloraCal received a Minor Use Permit from the County of Sonoma to undertake construction of the third and final phase of build-out and upgrades at its Santa Rosa facility. The finished facility will have an annual production capacity of approximately 1,100 kg of premium flower per year, as well as processing and distribution entitlements.”
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 an update on Sonoma County permit approvals received by the Company’s pending acquiree, California-based cannabis cultivator Cub City LLC and its wholly-owned subsidiary, FloraCal Farms.
The chart shows 15% piled on for shareholders of the listing during the trailing month. Moreover, the listing has registered increased average transaction volume recently, with the past month seeing 18% above the average volume levels in play in this stock over the longer term.
“Cub City’s approval to operate, and FloraCal’s permit to commence the final build out of its facilities in Sonoma County are key milestones in augmenting our growing California footprint,” said Afzal Hasan, President and General Counsel at Origin House. “With the close of the Acquisition and support from the County, we look forward to continuing to expand our infrastructure, expertise and team to unlock further growth opportunities in California. On behalf of our entire team, we thank Sonoma County and the Board of Zoning Adjustments for seeing the potential in our business and the positive impact it will have on economic development, as well as the community.”
At this time, carrying a capital value in the market of $586.8M, 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%. We will update the story again soon as developments transpire. 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.