Transcanna Holdings (TCAN:CNX) Stock Jumps 675% This year, What’s The Buzz?

Transcanna Holdings
Shares of Transcanna Holdings Inc (TCAN:CNX) (TCNAF:OTC) are one of the biggest...
Stay Ahead of the
Stock Market Game!
Subscribe to Small Cap
Exclusive for more

trending

Mainz Biomed MYNZ Receives a $25 Price Target (Possi...
Exicure XCUR has been on fire lately, up almost 50% ...
Cpmg Inc. Picked Up Reata Pharmaceuticals Inc. (NASD...

Shares of Transcanna Holdings Inc (TCAN:CNX) (TCNAF:OTC) are one of the biggest cannabis stock gainers this year on the Canadian Exchange. The stock is up a huge 675% since the start of this year. Transcanna‘s stock is up another 2% to $7.59 CAD in today session after hitting a new high 52-week high of $7.70.

According to the outfit Grand View Research, the global cannabis industry is projected to be value at a staggering $146.6 billion by 2025. More importantly, the compounded annual growth rate is projected to be 34.6%. When that happens, companies which provide logistical support to the industry is also going to grow and TransCanna Holdings Inc such a company.

[thrive_leads id=’8276′]

The Canadian company is engaged in distribution and transportation services that are meant for a range of industries. However, its main focus seems to be in Cannabis and it has now emerged that the company has successfully generated a handsome sum of money through a private placement.

New Cannabis Facility

TransCanna targets to build a portfolio of premium brands to capitalize on growing cannabis market. The company plans on acquiring 15 premium brands, manufacture them in a state-of-the-art 196,000 sq. ft. facility that covers everything from the nursery to extraction, and distribute them to a network of dispensaries via an internal sales team. The facility will allow the TransCanna to have a full service operation starting from nursery to extraction and then to distribution. The acquisition of this facility certainly gives the company a firm footing for its future growth and could prove to be a smart investment.

Private Placement

A private placement is often the best way to raise money for a publicly traded company, if it wants to raise fresh capital but does not want to go through the public markets. More often than not, this route is chosen by companies which want to raise capital through institutional investors. The company announced its private placement initiative was launched some time ago but it came to a close in the early days of April and TransCanna managed to raise a handsome $16 million.

The company issued 8,000,000 common shares of the company to the investors at $2.00 and in addition to that each investor was provided with a warrant along with each share. The advantage of the arrangement is that the investor in question would be able to buy a share in TransCanna for $3 until 2022 for each warrant that he owns. For an institutional investor, it is an excellent deal.

Looking Ahead

Following the capital raise, the company is going to spend half of it as an advance on a sprawling cannabis facility. It had made an announcement about the facility earlier this year. In addition to that, TransCanna will also need to use the money for purchasing high end manufacturing equipment and for all other sundry expenses.

Stay in the lopp :

Red Cat Holdings Inc (RCAT) Stock Sees Price-...

Drone technology companies have come into focus among many investors in recent times and it is easy to see why. The drone industry

Medivolve Inc. (OTC-COPRF, NEO-MEDV) is Possi...

Medivolve Inc. (OTC-COPRF, NEO-MEDV) is possibly ready for a big move, traders place this on your watchlist immediately!

 Here are SIX reasons why Medivolve

BTTZ Stock Price is up 104%, can it go higher...

Better Therapeutics BTTX stock price is up 104% in the last 5 days & volume is up 312%, but is it

related post

Skip to content