Now that shares of ABcann Global Corporation (TSXV: ABCN) are trading on the venture arm of the Toronto Stock Exchange (TSX), the company is creating more buzz than ever. On the same day it launched its initial public offering (IPO) (May 4), industry analysts PI Financial initiated coverage of the stock with a decidedly bullish report (http://nnw.fm/zcgG2) on the company. PI has put a “Buy” rating on the stock and set a one-year price target of $2.25, implying a return of well over 100 percent. The investment bank backs up this sunny prognosis with an in-depth look at ABcann’s value chain and Canada’s cannabis industry, by some accounts set to grow to $8 billion in sales by 2024.
ABcann Global recently acquired all the outstanding stock of ABcann Medicinals, a Canadian medical marijuana company licensed to carry on business as a producer and marketer of medical cannabis. ABcann Medicinals has strong fundamentals. It was a first mover in the Canadian cannabis space, obtaining a cultivation license in March 2014, just six months after Health Canada began inviting applications. In addition, it has collaborated with the University of Guelph in studies of the cannabis cultivation process. Consequently, the company has developed substantial institutional expertise, particularly in controlling quality and production costs and is now poised to add value in those areas and develop a competitive advantage.
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ABcann Global (TSXV: ABCN) Target Price Set At $2.25 as Coverage is Initiated
