CANNABIS WHEATON I COM NPV (OTCMKTS:KWFLF) Making A Comeback

CANNABIS WHEATON I COM NPV (OTCMKTS:KWFLF) exploded up the charts in May reacting to new deals in the Cannabis industry as well as due to obtaining a license under the Access to Cannabis for Medical Purposes Regulations. Later on, the share price went down in June, as market participants booked profits and short sellers stepped in. Have a look at the price action.SourceJust recently, the share price and volume picked up again with no apparent reason. In this piece, we will explain what market participants seem to be thinking to push the share price in such a way.SourceWhat's going on?For our readers who are reading about KWFLF for the first time here, let's review its business. The company is focused on the acquisition of other business entities. It obtains returns from the dividends as well as the capital appreciation of the companies being acquired. But, the most relevant factor for the company is not that. The most exciting is the last purchase made in the cannabis industry: interests in patient outreach and services agreements from 2557788 Ontario Ltd; a private company. The cannabis sector is offering extraordinary growth rates in the United States and Canada as a result of the legalization of several forms of marijuana. Emails subscribers can find a lot of information about this sector here.Let's review the new announcements as there are many. On May 26, 2017, the company noted that a new investor relations firm had been hired. The name of the firm is Skanderbeg Capital Advisors Inc. We appreciate the news. Additionally, in the same press release, the appointment of Sarah Bain as Vice-President, and External Affairs, was announced. The CEO said the following about the new VP:

“Over the last few years as the Canadian government has introduced legislation to legalize cannabis, Sarah has advocated and engaged with the government as well as media and stakeholders on behalf of leading Canadian companies and associations. Cannabis Wheaton and its streaming partners will greatly benefit from the breadth and depth of her rolodex of relationships as well as her strategic network, as this country enters a recreational cannabis market.” Source

Additionally, on May 29, 2017, it announced a new binding interim agreement to fund the construction of 50,000 square feet of cultivation space. The company has agreed to invest $30 million in the project. Market participants can find all the small details contained in the contract in the press release.On May 30, 2017, the new quarterly results were released. We believe that market didn't like the results. The company reported a loss of $0.03 earnings per share compared to a profit of $0.03 per share in the same quarter in 2016 . The loss is explained by the increase in the operating expenses of the quarter and the payment of management consulting fees. It was a bad quarter, that's all. But, we don't believe that the collapse in the share price can be justified with this news. Furthermore, on June 8, 2017, the company announced that it had appointed a new President, and Director; Hugo Alves. He was a Partner at Bennett Jones LLP, where he was responsible for the creation of the firm's Cannabis Group. He has extensive legal experience in the sector, which is exactly what the company needs at this stage. Chuck Rifici used the following words to introduce him:

"We could not be more pleased to invite one of the industry's most knowledgeable participants to the Cannabis Wheaton team to take a hands-on role in helping shape the future of Cannabis Wheaton as the new industry leader with its LP-2.0 platform. Hugo's reputation as a relationship builder, tireless worker and value creator is second to none. It speaks volumes and affirms our vision that someone with Hugo's pedigree and reputation would leave a long-standing and incredibly successful law practice to join our team and build this business with us." Source

On top of it, the company keeps receiving good news about the regulatory processes in Canada. On June 13, 2017, the company noted that its partner, Sundial Growers Inc., had received a cultivation license for its facility located near Airdrie, Alberta.What happened on June 28, 2017?On June 23, 2017, the company noted that the results of an offering of securities was going to be released on June 28, 2017. The offering started on June 6, 2017.

"The offering is expected to close on or about June 28, 2017, subject to a number of customary closing conditions, including TSX Venture Exchange approval, negotiation of definitive documentation, completing of satisfactory due diligence and the absence of a material adverse change." Source

Some market participants reacted on the Yahoo Finance Forum wondering what was happening with the stock.

"Ok, so, up 13%, what's happening? Did the offering complete?" User: Big Fish

We will need to wait until the company announces the results of the offering. We encourage market participants to stay alert on this name because of this reason. The share price may move much more in the following days. Our newsletter will be following the news.ConclusionKWFLF did not really provide news to justify the downward move. The last quarter was of course bad. But, the share price decline started some days before. We believe that market participants decided to book profits from the spike that occurred in May. Additionally, we reviewed other news reported by the company; they were all beneficial. The company is growing by signing new deals with other cannabis partners, has hired a new President to help with the legal matters and an investor relations firm. On top of it, the share price jumped recently, as market participants are expecting the results of its securities offering. To sum up, be alert on this name, it may surprise again. KWFLF has proven that it can run up the charts.Be sure to check out our coverage on KWFLF. We will be updating our subscribers as soon as we know more. For the latest updates on KWFLF, sign up below!Image courtesy of FlickrDisclosure: We have no position in KWFLF and have not been compensated for this article.