We first wrote about New Age Farms (CSE: NF) back at the end of November when it was trading around ~$0.10 and it skyrocketed (like most Cannabis stocks) right around Xmas up to $0.42 and back down to ~$0.20.
We wanted to get you caught up on the what the company is up to as they have done a major pivot and have had some interesting corporate updates.
3 large events have taken place: 1) Changes in capital structure and insider holdings, 2) Sale of Washington facility, and 3) Purchase of a Denver CBD Company
1) Capital Structure
Below is a cutout from their last Monthly CSE Form 7 Filing
New Shares issued
They have issued ~12M shares recently, mostly from warrants being exercised and 5M from their WAK purchase, which we will discuss later.
There have been over 39M options exercised during that time frame.
They have granted a large number (33M) of options to insiders and consultants in this short time frame.
From the SEDI filings, it appears that the CEO has also exercised over 4M warrants into shares, he then subsequently sold roughly 9M shares. This can be seen as a negative event (lack in faith of the future prospects) or positive if they are going to do another private placement shortly and the CEO is wanting take a cornerstone position in it…
2) Sale of Washington Facility
New Age Farm is in the process of selling their Facility in Oroville Washington (all related assets, tenant-grower leases, and fixtures) to two different Washington State entities for $2.5M US.
They are currently engaged in the due diligence process and New Age Farms stated that the resources from this sale will allow them to focus and to pursue opportunities available in Canada, where the regulatory environment is more stable
3) Subsequent US Acquisition
They then completed a 100% purchase of Denver online based CBD company in exchange for $1.15-million payable in cash and shares (5,000,000).
We are Kured (WAK)Website still under construction
Shortly afterwards they did a major re-brand on their WAK investment and placed a production order with Native Hemp Corp for 5,000 units of a WAK branded vape pens using their state-of-the-art disposable atomizing vaporizer.
They have since signed a sales agreement with full-service sales agency The GoodFellas Group LLC out of California to helps develop, market and sell non-licensed ancillary cannabis products, such as smoking accessories, cleaners and smoking papers, throughout the United States.
This is a dramatically different company than we wrote up on back in November and wanted to let out readers make up their own minds whether this company is still a good fit for their portfolio.
Fortune Favours the Bold
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