Canadian CANNAINVESTOR Magazine February 2018 | Page 87

87

Had the share price increased from say $0.15 to its share price of $0.53 on January 26th all would be very pleased. However, that is not what happened as the share price ramped up before settling back. Deepdive.ca issued a mini dive on LG recently highlighting two important facts – (1) lack of financial reporting and (2) that there are well over 400-million shares outstanding fully diluted. That reality check may prove sobering.

Another company that we recently highlighted in a case study suffered a similar fate as LG without the assistance of a social media or sustained promotion – Belgravia Capital International Corporation (CSE:BLGV). Its share price increased from $0.01 to a high of $0.36 again in just over two months before retreating to $0.15 at the close on Jan 26th. Similar to LG is its large fully diluted share count. However, unlike LG, BLGV’s assets and relationships are closer to home and they also have a multi-million dollar potential royalty stream that remains in effect through to the year 2020. A poorly timed Private Placement of $0.05 through cold water on the share price bull run. When one looks at the time of the Private Placement and the timing of the bull run and consider the statutory holidays of that time of year, the private placement pricing was probably already established.

I try to think of our relationship (myself and you the reader) as conversational and much of what I write on is based on actual feedback, input and suggestions from those I interact with on a regular basis while tying it in with our other content and using real life examples whether about myself or others. You may have noticed that often when I introduce a strategy (international diversification, animal care sector, etc) it is soon followed by dedicated articles that focus on these strategies. I am going to give a real example of connecting

the dots and the timing of recent news from one of these companies took away from the anticipatory component of this and caused a bit of rewrite. I was all set to write on an example of “connecting the dots” by using The Jenex Corporation (TSXV:JEN) and Icon Exploration Inc (TSXV:IEX). Rumours started circulating late in 2016 that IEX was looking to transition into the cannabis sector.