NORTH AMERICAN CAN COM NPV (OTCMKTS:USMJ) and Puration, Inc. (PURA) were rolled up by American Cannabis Innovations Conglomerated who entered into a Letter of Intent to acquire the controlling interest in both. This trend will be part of the cannabis move. Consolidation is a large part of a maturing sector as bankers and private equity seek ways to make money. This is not new.
The odd thing about this is that shares on USMJ were quietly accumulated, and gave no real indication they were going to be absorbed. PURA shares did give this indication and was more visible, but USMJ gave no clue.
NORTH AMERICAN CAN COM NPV (OTCMKTS:USMJ) shares had a bump in volume in February, and had subsequent price appreciation. The roll up will continue, and we will be looking for the other shoe(s) to fall as ACI completes the (5) company conglomeration.
American Cannabis Innovations Conglomerated (ACI) is a private equity backed rollup founded to combine a variety of leading young cannabis companies with complimentary offerings and synergistic operations. USMJ and PURA are the first of five acquisitions in the cannabis sector ACI plans to announce within the next 30 days. ACI is seeking to acquire early stage, undervalued businesses with intellectual properties validated by market tests, if not initial commercial or consumer sales.
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ACI expects to improve the operating efficiency of acquired assets by streaming redundant functions and leveraging complimentary functions. ACI expects the potential for market capitalizations of acquired companies to improve by transitioning the acquired companies toward better investment structures, with better terms, that are altogether better suited to their current and more mature stage of development. Existing USMJ and PURA management are expected to be included in the ACI management team. ACI, USMJ and PURA plan to finalize the acquisition of USMJ and PURA into ACI by the end of May.
“The opportunity for USMJ with ACI is huge,” said Steven Rash, CEO of North American Cannabis Holdings. “ACI brings the type of quality backing that can rapidly accelerate USMJ’s growth.”
“Puration has had tremendous success with its recent EVERx launch and is ready to launch a dozen additional products under the EVERx brand,” said Brian Shibley, CEO of Puration. “ACI is the answer to the product production costs required to launch the additional products. Watch out, here we come.”
We should have noticed the synergy at the April Conference where the companies were jointly selling EVERx CBD Infused Gummies for Post Workout Recovery. They made them available for the first time at USMJ’s AmeriCanna Cafe display at the Southwest Cannabis Conference and Expo in Fort Worth, Texas back on April 22-23. The success of this likely made this roll up easier. The stock movement was tipping this hand also, but it is difficult to tell what price movement means in volatile new sectors like cannabis.
The EVERx Brand is owned by USMJ. PURA and has licensed the production of select products under the EVERx Brand. PURA has licensed a U.S. Patented process for cannabis extraction and has entered into a number of agreements to infuse its proprietary CBD extract into food and beverage products.
PURA recently introduced EVERx CBD Infused Bottled Sports Water and EVERx Alkaline Bottled Sports Water at Arnold Schwarzenegger’s Annual Arnold Sports Festival. EVERx CBD Infused Bottles Sports Water and EVERx Alkaline Bottled Sports Water were available along with the new EVERx CBD Infused Gummies for Post Workout Recovery at the recent Expo in Fort Worth, Texas April 22-23.
North American Cannabis Holdings, Inc. (OTCMKTS:USMJ) will now be part of a bigger operation, and it is not clear to me how these trades will value this conglomerate going forward. But the 167% gain for the year at Friday’s close is a good coupon. Not sure how the common shareholders will participate going forward, but sure to tune back here and we will sort out the other 3 companies in the mix and what happens next. For continuing coverage on shares of $USMJ stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!