Aphria rises after Citron sells, MedMen sued by former CFO

PLUS CannabisWatch: The Green Organic Dutchman is still building but not selling, tiny weed producer wins POT ticker lottery


Short seller Andrew Left said early Friday he was exiting his position in Canadian cannabis producer Aphria Inc. and had begun to short Cronos Group Inc., citing its high valuation relative to analyst price targets.

Left’s Citron Research said Dec. 18 that it expected Aphria shares to climb to $8 by the end of 2018, and in a Friday tweet said the stock had gained more than 60%. In the Dec. report Citron said it expected Aphria to gain 40% by the end of last year. Aphria APHA, +0.09% APHA, +9.99%  stock is up 14% in Friday trading, and has gained 89% since Citron made its call.

Citron did not return a request for comment.

In the same tweet, Citron said that it was short Cronos CRON, -0.34% CRON, +6.17%  because the stock was trading 70% above sell-side analyst estimates. According to FactSet, there are seven analysts covering the name, with an average target price of $17.61. Including Friday’s rise of 7.5%, Cronos is trading roughly 57% above the average target price, according to FactSet.

Green Growth makes hostile bid for Aphria official

Cronos stock rose 60% since it announced the $1.8 billion investment in the company by Marlboro-maker Altria Group Inc. MO, +0.10%  Thursday, Altria’s CEO said he expects the global cannabis market to reach $40 billion in 10 years with no new cannabis legalization laws, and $250 billion if pot were legal the world over. He said the company wasn’t planning to stop at Cronos when investing in the industry.

Cannabis stocks largely gained Friday, with the Horizons Marijuana Life Sciences Index ETF HMMJ, +2.05%  rising 2.5%, and the ETFMG Alternative Harvest ETF MJ, +1.82%   increasing 2.8% in afternoon trading. The world’s largest pot company, Canopy Growth Corp. CGC, +0.01% WEED, -0.67%  gained 1%, Aurora Cannabis Inc. ACB, +0.13% ACB, +3.98%  is up 3.6%, and Tilray Inc. TLRY, +1.76%  is up 1.9%.

Other cannabis news
- MedMen Enterprises Inc. MMNFF, -7.06%  Chief Financial Officer James Parker, who resigned from his post in November amid an equity raise which it cut in half, is suing the company in Los Angeles Superior Court for breach of contract and wrongful termination, among other things. At the time, MedMen refused to comment on the CFO departure and said cutting the financing nearly in half was due to a “significant selloff” in the global market.

The American pot retailer said early Friday that it expects to report fiscal second-quarter earnings Feb. 27 after the closing bell.

- Canadian weed producer The Green Organic Dutchman TGOD, +4.55% TGODF, +5.13%  — which has not yet sold any pot in the recreational market but is valued by investors at roughly $1 billion — also rose Friday, after it said would be able to increase its capacity to grow cannabis to 202,500 kilograms a year from 156,000 kilograms a year at its facilities in Canada. However, the company also said several phases of construction would be complete either at the long-end of the company’s previous projected schedule, or delayed until 2021. Dutchman stock is up 7% in Friday trading.


- Weekend Unlimited Inc. WKULF, +145.26%  said Friday that it was the winner of Canada’s lottery for the POT ticker. Weekend Unlimited is a tiny cannabis company with a market capitalization of $46 million and no revenue to speak of in 2018, according to FactSet.

“There has been tremendous excitement generated globally for the POT symbol. The POT lottery served to raise the profile of Canada’s leadership in legal recreational cannabis and we believe it will also serve to raise Weekend Unlimited’s leadership profile,” Chief Executive Paul Chu said in a statement. Weekend Unlimited’s over-the-counter shares rose 122% to $0.18.

- Earlier this week Canada-based Organigram Holdings Inc. OGRMF, +1.12% OGI, +0.90%  said it had rolled more than one million joints.

WEEKEND UNLIMITED WINS THE “POT” LOTTERY

February 01, 2019 12:05 AM

“POT” LOTTERY GENERATES GLOBAL INTEREST AND EXPOSURE FOR CANADA’S LEADERSHIP IN CANNABIS LEGALIZATION

VANCOUVER, BC, CANADA (1 February 2019) – Weekend Unlimited Inc. ("Weekend" or the "Company") (CSE: YOLO – FSE: 0OS1) has been informed by the Canadian Stock Exchange (CSE) that it has won the lottery for the trading symbol POT.

“Weekend Unlimited is thrilled to add the iconic POT trading symbol to its identity,” said Mr. Paul Chu, Weekend Unlimited President and CEO. “As a fast-growing multi-state operator, Weekend Unlimited is developing lifestyle brands around recreational and wellness to help define the future of the cannabis industry. The POT symbol is a tremendous fit with our brand identity.”

The Canadian Securities Exchange, collectively with Toronto Stock Exchange (“TSX”), TSX Venture Exchange, and Aequitas NEO Exchange (together the “Exchanges”) announced the lottery for the POT symbol in January 2019. With the symbol in high demand, many eligible issuers currently listed on any of the Exchanges, or applicants who have made listing applications to the Exchanges, submitted ballots for the POT symbol.

Added Mr. Chu, “There has been tremendous excitement generated globally for the POT symbol. The POT lottery served to raise the profile of Canada’s leadership in legal recreational cannabis and we believe it will also serve to raise Weekend Unlimited’s leadership profile.”

Weekend Unlimited expects to begin trading with the new symbol POT on Monday, February 4th, subject to confirmation by the CSE.

For further information, please contact:

Mr. Paul Chu, President and CEO

Telephone: 1 (236) 317-2812 - Toll free 1(888) 556-9656

E-mail: IR@weekendunlimited.com

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About Weekend Unlimited Inc.

Weekend Unlimited is capitalizing on its vast industry relationships to establish a lifestyle brand featuring premium products and delivering life’s highest moments.

The company aggregates and scales small to medium brands, primarily in the categories of flower, extracts and edibles. Weekend Unlimited brands have best of class operations, distribution and strong revenue trajectories, making them ideal candidates for the deployment of capital and expertise through access to technologies, infrastructure and centralized systems. Learn more at www.weekendunlimited.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.