The Daily Buzz: The Week Kicks Off with Some Interesting Trading Opportunities (MMNFF, SHMP, AIMT)

Benjamin Roussey - September 16, 2019

Medmen Enterprises Inc (OTCMKTS:MMNFF) just announced that the waiting period under the Hart- Scott-Rodino Antitrust Improvements Act of 1976, as amended, has expired with respect to its proposed acquisition of PharmaCann, LLC.

According to the release, the expiration of the waiting period under the HSR Act satisfies one condition needed to close the Transaction, which is expected to be completed by the end of calendar year 2019, subject to customary closing conditions. “Today marks a monumental day for the cannabis industry,” said Adam Bierman, MedMen co-founder and chief executive officer. “We hope this will pave the way for other companies in what has become a highly acquisitive and dynamic industry.”

Medmen Enterprises Inc (OTCMKTS:MMNFF) frames itself as a company that, together with its subsidiaries, operates in the cannabis space in the United States.

The company cultivates, produces, possesses, uses, and distributes/retails cannabis in the recreational and medicinal cannabis marketplace. As of June 6, 2018, it owned and operated 18 licensed cannabis facilities under the MedMen brand name in California, Nevada, and New York.

The company frames itself as “the preeminent cannabis company in the United States” with multiple assets and operations in California, Nevada, New York, and Florida. MedMen owns and operates licensed cannabis facilities in cultivation, manufacturing, and retail, and is one of the most well-recognized cannabis brands in the world today.

Headquartered in Los Angeles, MedMen employs more than 800 workers across the United States. It was founded in 2010 by Adam Bierman and Andrew Modlin, two visionary entrepreneurs who saw not just a tremendous business opportunity in the growing legalization of marijuana, but a chance to re-define our society’s relationship with cannabis. MedMen supports sensible, clear and just drug laws.

The Company is the single largest financial supporter of progressive marijuana laws at the local, state and federal levels, giving directly to pro-legalization groups, industry organizations and political candidates.

Traders will note 3% piled on for shareholders of the company during the trailing month. What's more, the name has witnessed a pop in interest, as transaction volume levels have recently pushed 7% above the average volume levels in play in this stock over the longer term.

Bierman continued, “MedMen has built an enviable footprint which has cemented our brand in the largest cannabis markets in the world. Our transformative acquisition of PharmaCann will mold us into an even bigger and bolder company for our consumers. This acquisition doubles the number of states where MedMen has licenses, extending our geographic footprint and creating tremendous opportunity for our company and our shareholders. We are excited to be one step closer to closing the acquisition.”

MMNFF has about $12.2M in cash on the books, which must be weighed relative to a mountain of over $86M in total current liabilities. The company has been pulling in significant revenues, with over $7M in Q1 of this year, representing over 630% quarterly y/y growth on the top line.

 

NaturalShrimp Inc (OTCMKTS:SHMP) has been rejuvenating in recent action. This was a monster runner last year, and could be resurrecting itself for an end-of-year run.

The company just announced with Hydrenesis, Inc. today that they have delivered one of their water treatment systems to Bergen, Norway to test the system’s efficacy in reducing or eliminating the bacteria, viruses and diseases that have decimated both indoor and outdoor aquaculture to date.

According to the release, “The international aquaculture industry is growing annually. The finfish industry is one of the most developed sectors in the industry and its fish farmers are known for being early adopters of new technologies that stimulate sector growth (such as smart-farming platforms, automated centralized feed systems, and new “clean” treatments for wastewater and culture water). The salmon industry, for example, is predominantly using sea cage culture, married with recirculation systems, for smolt and post-smolt production.”

NaturalShrimp Inc (OTCMKTS:SHMP) bills itself as a global shrimp farming company that is developing a technology to produce fresh, gourmet-grade shrimp reliably and economically in an indoor, re-circulating, saltwater facility.

Its eco-friendly, bio-secure design does not rely on ocean water, but rather recreates the natural ocean environment allowing for high-density production which can be replicated anywhere in the world.

The company was founded in 2001 and is based in Dallas, Texas.

According to the release, “NaturalShrimp, Inc. (OTCQB: SHMP) is a publicly traded agro-technology company headquartered in Dallas, Texas with production facilities located near San Antonio in LaCoste, Texas. The Company has developed the first commercially viable system for growing shrimp indoors using patented technology that produce fresh, never-frozen, naturally grown shrimp without the use of antibiotics or toxic chemicals. NaturalShrimp systems are self-contained, saltwater production facilities that can be located anywhere in the world to produce gourmet-grade Pacific White Shrimp.”

Recent action has seen more than 100% tacked on to share pricing for the name in the past month. What’s more, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed exceeding 190% beyond its prior sustained average level.

At this time, carrying a capital value in the market of $65.7M, SHMP has a stash ($818K) of cash on the books, which is balanced by about $4.8M in total current liabilities. The company is pre-revenue at this point.

 

Aimmune Therapeutics Inc (NASDAQ:AIMT) hit an important milestone on Friday afternoon, so today’s action could be quite interesting.

The Allergenic Products Advisory Committee (APAC) convened by the U.S. Food and Drug Administration (FDA) voted to support the use of AR101 (proposed trade name PALFORZIA) in children and teens with peanut allergy. The vote was expected to go well, so the price reaction shouldn’t be overly extreme. But indications are in place for a large gap higher today as the action gets going.

Note, there will still be concerns about commercialization. Considering the big picture and the strength of the data, FDA approval hasn’t been a completely forgone conclusion in our view, so the potential for some bears getting squeezed if the stock holds up during morning action shouldn’t be discounted.

Aimmune Therapeutics Inc (NASDAQ:AIMT) trumpets itself as a clinical-stage biopharmaceutical company, develops and commercializes product candidates for the treatment of peanut and other food allergies.

Its lead Characterized Oral Desensitization ImmunoTherapy product candidate is AR101, an investigational biologic for the treatment of patients with peanut allergy.

The company has strategic collaboration with an affiliate of Nestle Health Science US Holdings, Inc. for the advancement of food allergy therapeutics. The company was formerly known as Allergen Research Corporation and changed its name to Aimmune Therapeutics, Inc. in May 2015. Aimmune Therapeutics, Inc. was founded in 2011 and is headquartered in Brisbane, California.

AR101 is a new, peanut-derived investigational oral biologic drug for use in oral immunotherapy in patients with peanut allergy.

The drug, which is manufactured in accordance with current Good Manufacturing Practices (cGMP),
delivers a daily dose of peanut protein with a characterized protein profile, analyzed to ensure consistent major allergen content. The amount of active ingredient in each AR101 capsule is controlled to ensure minimal variability of allergen content across doses of a given strength. AR101 is administered as an oral powder in graduated doses in pull-apart capsules or foil-laminate sachets.

The contents are mixed thoroughly with a few spoonfuls of age-appropriate, unheated food of the patient’s choice.

Aimmune Therapeutics Inc (NASDAQ:AIMT) had no reported sales in its last quarterly financial data. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($243.7M against $43.2M).

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Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss

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