Part of our industry pioneering late stage applicant strategy from May 2016. Much has happened with PUF since that time. An investor who bought at that time and still held at time of writing realized an ROI of approximately 11%. However, the share price peaked on September 26th and an upper limit ROI of 66.67% was possible. So why discuss PUF now and as part of a case study in particular?
As mentioned in my article in this issue, PUF issued a news release that included state-ments that were
misleading and could not be substantiated in fact and subsequently issued a clarification. Accurate, reliable, and timely information is key in this industry as is the measurement of stewardship. Those sour will focus on the initial misleading information of the original news release while others will focus on the clarification news release since mistakes can and will happen in any company.
Diversification is also a cornerstone strategy and PUF has done that both geographically and by product line while simultaneously leveraging the expertise and resources of another company by means of a joint venture:
PUF Ventures signs joint venture agreement with Canopy Growth Corporation (source).
Enters into a JV with MYM Neutraceuticals Inc (CSE:MYM) to build a 1-million square foot facility in Australia (source).
Clariication news release by management (source).
PUF Ventures completes acquisition of Natures Hemp Corp (source).
PUF Ventures prepares Health Canada proof of readiness submission for grow facility in London, Ontario (source).
At face value, PUF has hit several of our strategies and has partnered with at least two companies including the world’s largest legal
producer (Canopy Growth). That joint venture in time will be revenue generating and getting product to market (and being affiliated with Canopy Growth) contributes to recognition factor.
The US and FRA listings offer investors in the US and Germany direct access to trade in PUF’s common shares and that necessary improves liquidity.
Cons?
As at June 30th, they had $1.89M cash on hand with some material expenditures and announcements subsequent to that date. Translation – a financing would not be unexpected.
Somewhat mitigating the degree of financing needed, PUF announced it was spinning off Vapetronix and shareholders of record (as at October 4th) would receive 1 share of that company for every 7 shares of PUF owned (source).
PUF VENTURES INC.
CSE:PUF OTC:PUFXF FRA:PU3
As At October 19, 2017
Shares Outstanding: 50,527,458
Share Price: $0.39 Market Cap: $19,705,709
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