CANNABIS WHEATON I COM NPV (OTCMKTS:KWFLF) Becomes A Cannabis Player

CANNABIS WHEATON I COM NPV (OTCMKTS:KWFLF), the Canadian cannabis operator, has recently exploded up the charts and its volume has also increased consequent to new communications put out. The share price went from trading at the level of $0.75 a few days ago to almost $2.00, while moving close to 0.5 million shares on the average. In this article, we will assess the reasons behind this move. Have a look at the recent price action:SourceBusiness and recent developmentsThe company is quite an old business entity. it was founded on August 24, 1987. It is located in Vancouver, British Columbia. Its main activity is taking positions in private companies to obtain returns through dividends, investment fees, and capital appreciation. The company had invested in multifarious fields and changed its name several times.Let's focus on the main business operations right now. The company started operating in the Cannabis sector after the acquisition, on April 18, 2017, of "interests in patient outreach and services agreements" from 2557788 Ontario Ltd; a private company. The total consideration paid was $1.2 million. In the press release, wherein this transaction was announced, the company noted that it would continue buying assets in the cannabis industry given its large upside potential. That declaration was very serious as in the next press release put out on May 10, 2017, the company introduced large amount of new deals signed with a total of 14 streaming partners and 16 sites across 6 provinces. The CEO, Chuck Rifici, explained:

"Cannabis Wheaton management and advisors have long had a strong presence in the industry. This has allowed us to engage with those who we believe are the medical cannabis leaders, as well as those we have identified as future leaders in a legalized cannabis environment. The company has assembled a critical mass of streaming partners at various stages ranging from sales license, cultivation license, affirmation letter holders and advanced pre-license companies which all will benefit from a symbiotic relationship with CW and with each other." Source

Investors can find an extensive list that includes the licensing stage, the annual expected production, and the ownership of KWFLF in the press release. To sum up, the agreements include 1,300,000 equivalent square feet of cannabis cultivation and production capacity net to Cannabis Wheaton by the end of 2019. Additionally, we encourage investors to have a look at the corporate website of KWFLF.The next press releases that had an impact on the share price was released on May 17 and May 19, 2017. On May 17, the CEO, Chuck Rifici, discussed the state of the cannabis industry on the Canadian Broadcasting Corporation "On the Money" program. In our opinion, the appearance had a large impact as the market got to know a little bit more about the operations of the company. We believe that this event was partially responsible for the share price increase that we saw in the following days. The company did not release more information, so this is the only way to justify it. The share price went from $0.8 to approximately $1.25 in only two days.On May 19, 2017, it announced the appointment of Kevin Furet to the position of Chief Cultivation and Genetics Officer, which we believe was not extremely relevant. Additionally, the other press release put out the same day did have a lot of importance. First Access Medical Inc., a subsidiary of one of the company's partners, had been granted a cultivation license under the Access to Cannabis for Medical Purposes Regulations. The CEO explained that the news was quite significant for KWFLF:

"We want to congratulate Beleave on this major milestone and achievement! The Beleave team are an incredible group of professionals and industry leaders and we could not be happier for them on obtaining their cultivation license. In addition to their fantastic cultivation facility, the Beleave team has consistently demonstrated leadership in promoting the advancement of cannabinoid based science by entering into research partnerships to investigate cannabinoid purification methods, cannabinoid genetics and potential therapeutic uses of cannabinoids for pain management. Today we celebrate Beleave’s success and look forward to working with Beleave as we execute Cannabis Wheaton’s business plan of creating a world-class, risk mitigated financing and distribution platform." Source

Financial conditionThese are the numbers reported for the fiscal year 2016:

• Total revenues: $231,000
• EPS: $0.025
• Total assets: $417,000
• Long term debt: zero
• Market capitalization: $243 million

Regarding the liquidity of KWFLF, the management does not foresee that "the Company will be running into working capital deficiency". This is good news.ConclusionKWFLF surprised the market in May by putting out new deals with partners in the Cannabis industry. Additionally, in the latest news, we could see that the company is now licensed under the Access to Cannabis for Medical Purposes Regulations. In our opinion, the fact that Canada is about to legalize recreational marijuana makes KWFLF a name that won't be under the radar much longer. To sum up, as good news are generally followed by more good news, we encourage investors to stay alert on KWFLF. We will be updating our subscribers as soon as we know more. For the latest updates on KWFLF, sign up below!Disclosure: We have no position in KWFLF and have not been compensated for this article.