The medical marijuana sector has seen a rapid surge of new entrants in the past few weeks as companies prepare for new reforms in Canada and the U.S.
Thursday brought a host of these junior entrants, including Bayhorse Silver (CVE:BHS), Majescor Resources (CVE:MJX) and West Point Resources (CVE:WPO).
Bayhorse said it has formalized two consulting agreements with specialists who are active in the medical marijuana industry to advise the company with investment opportunities. The first is the owner of Blueroots Cannabis, which is preparing to operate a 16,000 square foot marijuana growing facility in Spokane, Washington, and the second is Canna-Hydro, a consulting business for medical and recreational marijuana growers in Colorado and Washington.
The company will work with the consultants to identify business opportunities in the marijuana industry, including with other companies that are seeking or have made "growers applications" in the state of Washington, where recreational marijuana use is now legal.
Bayhorse was last up more than 7% at 15 cents, earlier rising to as high as 17 cents.
Majescor also said it is planning to "evaluate new business ventures including but not limited to opportunities in agriculture, medical technology, finance, resources and oil and gas", with shares rising over 16% to 10.5 cents this afternoon.
West Point said Thursday that it plans to "actively source, evaluate and conduct due diligence on several sectors, including medical marijuana. Shares of West Point surged 22% to 5.5 cents, at one point reaching 16 cents.
The medical marijuana business has been a booming sector for Canadian juniors lately, with one after the other making their way into the arena in preparation for a massive reform from the newly established Marijuana for Medical Purposes Regulations (MMPR), which aim to commercialize the growing process for medicinal pot.
In the U.S., 17 states have legalized medical marijuana, two states have legalized adult use marijuana, and many more states have ballot measures in place for the November 2014 elections, while on this side of the 49th parallel, the newly established MMPR have both cut down on the red tape and plethora of forms that characterized prescriptions for medical marijuana heretofore and opened up the market to commercial–scale production.
Thelon Capital (CVE.THC) also said today that it is continuing to evaluate new projects in "agriculture, finance and resources", and has appointed Scott Walters as president and CEO.
Earlier this week, Supreme Pharmaceuticals (OTCBB:SPRWF)(CVE:SL) said that as part of its due diligence, it is currently visiting the producing medical marijuana facility on which the company may acquire an option to purchase. The company told investors that it will get an on-site evaluation of the complex, located in the south Okanagan, as it enters the final stages of due diligence. Supreme announced last week that it signed a conditional deal to buy a medical marijuana-producing facility for up to 12 months for a total of $1.0 million in cash and shares.
Meanwhile, big player Tweed (CVE:TWD) is set to list Friday, and is expected to explode on IPO, as the company is preparing a 50,000 square foot facility in Ontario and has a website in place that will be selling 25 strains to Canadian patients for prices between $5 to $12 per gram, including shipping.
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