This week, we take a deep dive into four companies, one of which is a penny stock to avoid…

Although, many people are focused on earnings and the issues at CannTrust Holdings (NYSE: CTST) right now, there are several other companies our members have asked questions about recently.

While the companies I am about to talk about aren’t in any of our model portfolios, I still want to provide our members with insight into other companies and their investing strategies.

Keep in mind that I can’t give personal financial advice, but I can provide my general thoughts.

Hopefully, you’ll find some nuggets of wisdom from how I evaluate a company and apply them to your own investing philosophy.

Also, we currently have ratings on more than 190 companies in our NICILytics database. If you want to see all the cannabis tech stocks, or the medical firms, or the up-and-coming brands – you can sort this database by market sector.

Today, we’re going to look at four companies: Advantis Corp., FSD Pharma Inc. (CSE: HUGE, OTC: FSDDF), Radient Technologies Inc. (TSXV: RTI, OTC: RDDTF), and Wayland Group Inc. (CSE: WAYL, OTC: MRRCF).

And as you’ll quickly see, there’s one company in that group that you’ll want to run away from…

What to Know About These Cannabis Companies

One of our members asked about a very diverse group of cannabis companies.

Ronald N. asks: “Would you please shed light on three stocks we don’t hear much about? They are FSD Pharma, Radient Technologies, and Advantis.”

Hi, Ronald. Let’s start with the one you should avoid at all costs. Then, I’ll tell you about the one that shows promise.

Advantis Corp.

Advantis is an old penny stock. The company has previously been in the water treatment business and, after that, it was marketing a lip balm.

Now, it’s in the CBD business.

A quick check of the stock price will show you that it has not been successful at any of these endeavors. Somehow, over time, the company managed to issue over 800 million shares (by comparison, Google has less than 350 million shares).

And, with those 818,969,715 shares, it managed to generate revenue in the first quarter of $145,760. That’s not in millions – that’s in dollars. The company has less than $25,000 of cash, and its total assets are less than $300,000.

It has no announced strategy. It doesn’t disclose what it is selling, or where. And, it survives off of loans from its biggest stockholders.

That should be all you need to know about Advantis Corp.

FSD Pharma Inc.

FSD Pharma Inc. (CSE: HUGE, OTC: FSDDF) is a better company. It has even less revenue than Advantis, but it has some cash (C$17 million) and plans to open a very large facility in Canada.

It also has an assortment of investments in other cannabis companies, including pharmaceutical companies.

If there is to be a payoff from the company’s strategy, it is likely very far off – 2025 at the earliest – and will require a lot of newly-raised cash to complete the company’s buildout.

In this market, we need companies which are experiencing near-term catalysts.

Radient Technologies Inc.

Finally, Radient Technologies Inc. (TSXV: RTI, OTC: RDDTF) is doing a little better than I expected.

Download the PDF

Radient has engineered a new way to dry cannabis buds. Drying is an important step in the production process, which is traditionally either very expensive or very time-consuming.

Drying is also very important because, if done wrong, it can hurt the quality of the cannabis. Radient had not been succeeding at getting potential customers to try its method, but it recently made a well-received turn to the extraction business, which is going to be a huge deal in Canada as vapes and edibles become legal in December.

In fact, extraction is going to be so important that our Advisory Board Member, Jenn Larry, was kind enough to create a report about extraction that our members can access for free to the right of this text.

It’s also been leveraging some nicotine-reduction technology that could create a good business over time. Recently, a lot of my research time is being spent reviewing this company closely to see if it can become as important in the extraction industry as Valens GroWorks Corp. (CSE: VGW, OTC: VGWCF) and Neptune Wellness Solutions Inc. (NASDAQ: NEPT, TSX: NEPT).

Next, I’m going to take a look at a complicated deal.

Wayland Group Update

The cryptocurrency market has tried to converge with the marijuana industry, and there’s a current example of that taking place.

Andre Hernandez asks: “Can you give me your take on the recent announcement of Wayland Group selling its assets to Cryptologic. I own both Wayland and International Cannabis Corp., and it seems like a complex deal. I have been holding on to both for the long term, but I have taken it in the shorts on both. Seems like a share offering deal, but they mentioned a $4 per share price point?”

This is complicated stuff, Andre.

The fact that the Wayland Group Inc. (CSE: WAYL, OTC: MRRCF) has a habit of missing regulatory filing deadlines hasn’t helped matters.

To catch all of our members up on what is happening, Wayland is selling its Canadian assets to Cryptologic in exchange for shares – the Wayland holders will have 70% of the new Cryptologic.

Cryptologic intends to sell its crypto mining, and the closing on the deal depends on Cryptologic having C$25 million of cash following the sale.

So, the resulting company will have Wayland’s Canadian assets, Wayland’s management, and Wayland’s shareholders along with new cash and new shareholders. That seems like a complicated share sale. Meanwhile, Wayland is completing an earlier deal in which it is selling its international operations to International Cannabis Corp. (CSE: WRLD, OTC: WLDCF) for ICC shares which it intends to distribute to shareholders.

I haven’t figured out exactly what Wayland is up to right now, but I think you’re right – the company is basically selling shares at a deemed price of C$4.00, a price Cryptologic hasn’t seen since February.

I like those international assets – I’ve talked about International Cannabis to Lifetime Members before. And Cryptologic’s CFO, who is staying on as CEO of the new company, had an earlier successful exit in the cannabis business, which is always a good sign. But there are so many moving parts here that I think it makes sense to stay away from the whole mess until things become more stable. For those with a longer-term outlook, I do think that ICC will have some value after the smoke clears.

Enjoy the rest of your weekend.

Take care,

Greg MillerGreg Miller
Executive Director, National Institute for Cannabis Investors


Comments

18 responses to “You Asked, We Answered: Four Companies You Want to Know More About”

  1. I understand you don’t give personal advice. That is fine.
    But the stocks that you recommend DO YOU PUT YOUR OWN MONEY INTO?

  2. You didn’t mention LeafBuy Holdings – LBUY. I wrote previously about an update and hoped it would be covered here. Thanks in advance for your thoughts.

  3. Hello I’m just starting out never did this before and I don’t want to miss the ship that you talk about, not being on board ! SoI will keep my eyes and ears open and get on board to see were it takes me

  4. Crop infrastructure (CRXPF) About CROP Crop is publicly listed on the CSE and trades under the symbol “CROP”. CROP is focused on cannabis branding and real estate assets. CROP’s portfolio of projects includes cultivation properties in California, two in Washington State, a 1,000-acre Nevada Cannabis farm, 1,865 acres of CBD farms, extraction in Nevada and joint ventures on West Hollywood and San Bernardino dispensary apps with international focuses in Jamaica and Italy. CROP has developed a portfolio of assets including Canna Drink, a cannabis infused functional beverage line, US distribution rights to over 55 cannabis topical products and a portfolio of 16 Cannabis brands. CROP’s infrastructure has over 150,000 sq ft of built canopy and over 2,900 acres of real estate. Hey Greg could you and the team rate this company?

  5. (EVIO) Management has been spending a lot of money to expand, in the hopes of becoming the go-to company for all cannabis testing needs. And it’s grown the company to one of the biggest testing operations in the world. There are a few other private operations with the kind of scope that EVIO has. But none of them are publicly traded yet. And that’s another early mover advantage EVIO has. Once investors see how integral a role testing companies will play in the future of the industry, they’ll start to go on the hunt for investments. And EVIO is the only company on the stock market you can buy. As of right now, the company has 11 operational, and licensed, testing facilities and the labs are located in Oregon, Colorado, California, and Massachusetts. These are all states with legal recreational and medical marijuana laws. Could NICI rate this company?

  6. I bought Wayland Group Inc a long time ago and it has been halted ever since on the CSE It indicates a price of 6 cents and is still halted. Can you explain this to me please. I show a huge loss.
    Thank you

  7. No comment rather a question. I was reading about a Canadian company that was only specializing in buying Cannabis from other growers and they processed the plants into oil that could be sold to other companies for creating their own CBD products or Thc infused products, I like the idea only I have lost the name of the company and was hoping you might enlighten me. Thanks, Fitz

  8. Curtis, it could be Medipharm, an extractor which was the first cannabis company to go public without ever having grown any cannabis. The stock I bought inJanuary has grown in value substantially.

    Greg, with the expected growth of cannabis extraction, would you please consider reviewing Medipharm? I believe it’s a strong competitor to Valens and my stock in Medipharm has gain grown in value in the last seven months than any of my other other cannabis stocks.

  9. YOUR DOING GOOD WORK,,, I HAVE THREE 3 STOCKS LIKE YOU TO TELL ME WHAT U THINK OF THEM FOR LONG TERM AND ,
    ALL ARE BOTTOM FEEDER,, –
    -OWN @ $0.16 X 20000 SHARES FUTURE FARMS (FFRMF)
    OWN @ $.50 X 3500 SHARES INTEGRATED CANNABIS ICNAF)
    OWN @ $15.00 X 700 SHARES TRULIEVE CANNABIS ( TCNNF)
    THANK YOU PAUL

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