I’ve got to hire more writers – who can keep up with the weed sector right now?
Kushtown USA, AKA Finore Mining (at least for the next few days) (FIN.C) put out an update this morning that gave a LOT more information on their big deal in California.
I covered a lot of the story yesterday, but here are the details that have just been revealed:
- Kushtown shareholders will get around US$950,000 for merging into Finore, at a deemed share price of $0.15 (the stock is currently at $0.37, so those guys are popping champagne)
- Name change will go through on the close of the transaction and the new ticker will be KSH.C
- Existing management will stay on while a new CEO with experience in the beverage space will be recruited
- Company plans to quickly shift focus to national branding and distribution as laws evolve
- The company has been around since 2000, making it a California staple weed business, and is currently in over 200 dispensaries
If you’re looking to play the Cali vote, and the other states also likely voting for recreational and medical marijuana adoption, this is a good play. But I like it more as a branding push when the US truly begins to open the market to good brands, rather than the current patchwork quilts of ‘locals only’ mom and pop business.
— Chris Parry
FULL DISCLOSURE: Kushtown/Finore is an Equity.Guru marketing client, and the author owns stock in the company.