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VIEW CASE STUDY LINKS HERE
Since we mentioned QCA in our last issue’s case study as well as in an article, it seems it has quickly become a company with a growing awareness. Before the case study, I cannot recall even one time reading on boards about QCA or any person asking me about QCA. Since that case study was published, investor awareness and discussion of QCA has been quite noticeable and one can see why.
QCA’s share price increased from $0.11 from the time that artile was written to a high of $0.18. For a more thoughout review of QCA, please refer to our last issue as well as their website for recent news releases. Although a relatively newcomer to the cannabis industry, this merchant bank has been public (listed) since Deember 10, 2007. The share price at time of writing is $0.165 resulting in a respectable dividend yield rate of 3.03%. Yes that is correct - a regular quaterly dividend that was initiated in 2014.
Highlights
An overall track
record of profit-
able deals & pos-
itive cash flows.
A reliable dividend payout since its 2014 inception.
Focused on the cannabis industry.
Strategically invested in Canada House Wellness Group (CSE:CHV). CHV wholly owns an LP and a clinic network (Marijuana for Trauma).
Announced its acquisition plans to acquire High Standard Royalty Corp (HS).
HS: LOI signed with Maryland’s Herbiculture Inc to finance the startup costs of establishing a medical marijuana dispensary (3 year 10% note and a 35% equity “kicker”).
HS will also receive 75% of the net income above until the note is repaid.
HS will receive a 51% ownership in the marijuana processing operation.
The company completed a share buy program recently resulting in the low current public float.
Recent market priced PP with warrant strike prices almost 200% of the current share price.
One of the basic tenets for successful investing is to investment in management. A quick look at the Board along with the expertise that will be
transferred from HS suggests first rate stewardship with a proven track record.
QCA is also just getting started suggesting far more upward potential than downside potential and although they may be just getting started with their focus on the cannabis industry they themselves have been publicly listed since 2007 and in existence since 2004.