When Wayland Group (WAYL.C) forerunner Maricann announced an exclusive deal to produce and sell Colorado-based Rare Dankness cannabis genetics in Canada, shareholders were into the idea.
The stock was running from $1.10 a few months before the announcement to over $2 after it, and would peak a few months later at more than $4.40. CEO Ben Ward was doing press appearances on anything with a camera and the Reddit crowd were loving it.
Ward was particularly excited about his new partners, stating, “Rare Dankness will headline Maricann Group Inc.’s offering to the recreational market,” calling them, “the world’s most sought after certified strains and cannabis products.”
But it appears things were danker than they appeared.
15 months after the announcement, Rare Dankness last night posted this on Twitter.
— Rare Dankness (@RareDankness) June 4, 2019
Wayland, currently halted in Canada for not being able to get their financials together, has made no announcement relating to this cancellation as of the time of writing.
The deal brought Rare Dankness $500k in cash, and “C$250,000 in warrants on the date of signing and on the first and second anniversary date of the Exclusivity Agreement.”
That warrant deal went bad pretty quickly, with the stock quickly turning south from its high. Today, it trades (in the US) at CAN$0.72.
With Wayland production numbers low (last we heard), and the warrants being nigh worthless, it’s probably not surprising RD decided to ship out.
Notable is this, from the terms of the initial deal:
The Exclusivity Agreement provides Maricann with exclusive distribution and retail rights for the Canadian markets for specified Rare Dankness Genetics and Products for a five year term, subject to Maricann meeting minimum wholesale targets each year or paying an exclusivity fee and a right of first refusal to act as RD’s exclusive distributor for the products in Europe.
Wayland, it would appear, couldn’t meet those conditions.
— Chris Parry
FULL DISCLOSURE: I don’t like Wayland Group and have always been right about it.