Canadian CANNAINVESTOR Magazine November 2017 - Page 287



receive 1 share of that company for every 7 shares of PUF owned (source).

The fact is – until they are issued a licence they do not have one. On June 6th,PUF issued a news release that they were 8th in licence queue. Since that time, 22 licences have been issued by Health Canada.

To some, a tainted past as its former CEO received a lifetime ban from securities trading - remember the Panama Papers? (source). The company we now know as PUF went through a few name changes during that era. Be assured, that is all in the past but some use this no longer relevant facet of PUF’s history for their own nefarious purposes and this is mentioned here for completeness because this is a case study and as I said, PUF seems to touch on many facets ranging from this scandal perpetrated by the former CEO to well executed partnering and diversification.

Supply and Demand and competition for investment dollars. For example, Canada House Wellness (CSE:CHV) has a lower market cap and a share price about half that of PUF’s, is a licensed LP, is already diversified, wholly owns a successful and growing clinic network and mobile app company, has entered into a JV with an edibles company that is also proficient in oil extraction, and has Quinsam Capital Corp as a direct investor. However, one would also speculate that CHV will require a capital raise in the not to distant future.

In no way is the above to suggest that CHV is a superior investment – only the passage of time will determine that but it does fully demonstrate that there are value priced shares of companies competing for investor dollars with PUF. Supply and demand for investment dollars does not only apply to its free trading shares on the secondary markets but for any financing as there has been a significant round of financing from several companies in recent weeks.

PUF is not only a producer but has also embraced the world of Apps with WeedBeacon.

That, and more, is why PUF is a case study at this time. It touches on almost every facet of why this investing in this industry is filled with opportunity and excellent ROI yet has elements of dishonesty and scandalous behaviour that indeed has led some to compare it to the dot-com era. PUF meets the metrics of more than one of our pioneering industry leading strategies as well for inclusion in our stock lists.

A tainted past (and emphasis on the past) combined with misleading news releases and perhaps an over optimistic self assessment of where they truly were in the licence que just may have contributed to weighing down the market cap (and share price). Is a licence imminent? Will their first harvest be sold through their JV with Canopy? Is PUF not an ideal case study?

A fantastic backgrounder for those looking to do more due diligence.