For traders interested in some fresh blood in the cannabis patch, TIDAL ROYALTY ORD (OTCMKTS:TDRYF) is worth a serious look. The stock just started trading, but is already seeing a critical expansion in both operations and trading liquidity. To fuel that narrative, the company just announced that it has entered into a Letter of Intent with Illinois Cannabis Company – an established and licensed operator in Illinois – to help finance Illinois Cannabis Company’s operations and strategic acquisitions.
“Today is the day that everything has changed in Cannabis,” tweeted Andrew Left, famed head of Citron. “Real $$$ into space.” That was about a week ago, in reference to a monster new strategic investment by a Fortune 500 company in a cannabis company. That has spurred a massive flow of money into the space, sending many stocks up 30, 40, 50, even 75% in just a matter of days. Now, the hunt is on for the fresh blood. TDRYF fits that bill in a lot of ways. And this newest deal in Illinois really puts the stock on the map for the institutional money.
TIDAL ROYALTY ORD (OTCMKTS:TDRYF) bills itself as a company that provides royalty financing to the U.S. regulated cannabis industry.
Led by an executive team with extensive industry experience in Canada and the U.S., Tidal Royalty provides operators with the funding they need to grow their business.
Operators benefit from non-dilutive capital and investors get top-line access to a diversified portfolio of companies that will form the future of this transformative industry.
The Devil’s in the Details
As noted in the release, Tidal Royalty will provide the Illinois Cannabis Company with up to $41M, in the form of both a royalty financing and equity investment, according to its ability to meet benchmarks integrated into the deal.
“As Tidal Royalty looks forward to where the U.S. cannabis market is headed, we are excited to broaden our investment strategy,” said Paul Rosen, CEO & Chairman of Tidal Royalty. “We are very excited to count the Illinois Cannabis Company among our portfolio constituents. Between the near-term cash flow generated by their existing operations, management’s vision and drive to grow their market share, and the ability to accelerate their growth with Tidal Royalty capital, we feel this is going to be the beginning of a great long-term relationship between our companies.”
The chart shows a bit more than 380% piled on for shareholders of the listing during the trailing month. In addition, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 120% over the broad average. In other words, we are seeing a thin stock get bid higher, and on rising volume.
At this time, carrying a capital value in the market of $57.49M, TDRYF has virtually no cash on the books, which must be weighed relative to virtually no total current liabilities. The company is pre-revenue at this point. But this is a red-hot market space, with huge breakouts underway in a number of second- and third-tier names over the past week.
TDRYF may quickly push itself into the limelight as an emerging prospect for the institutional money that has been pouring into the space since Constellation Brands shoved another massive chunk of change into Canopy.
Everyone is playing Go Fish for the next hot item. This is the new kid on the block. Do the math.