Tweed Marijuana, a publicly traded medicinal marijuana company on the Toronto Stock Exchange-Venture board (TWD), announced Monday morning that the company had completed its merger with Bedrocan Cannabis in an all-stock deal valued at about CDN$61 million on the day the arrangement was first announced in June.
Tweed is Canada’s first publicly traded medical marijuana company and Bedrocan is a clinical research firm that claims to be one of only two companies in the world currently capable of producing standardized full-bud, pharmaceutical grade medicinal cannabis. Bedrocan operates as a division of Tweed, and Bedrocan’s shareholders own approximately 40% of the merged companies. Tweed shareholders own about 60%.
The combined company claims more than 5,600 active registered customers. Beginning tomorrow, September 1, customers of either producer will have access to both dried cannabis strains and soon for cannabis oils as well. Bedrocan’s standardized, pharmaceutical-grade product line is a direct extension of the product that has been grown at the company’s Netherlands operations for more than a decade and used in medical trials. The history and consistency appeals to the medical community because doctors and patients can trust that each batch of medical cannabis contains the same percentage and ratio of cannabinoids over the duration of a prescription.
In the first quarter of 2015 Tweed’s revenue totaled CDN$1.71 million, based on sales of nearly 216,000 grams of product at an average price of CDN$7.74 per gram. That works out to about US$2,650 per pound based on today’s exchange rate. Last week’s price for a pound of cannabis in the United States was $2,045, and that is the highest price this year.
Tweed’s stock closed at CDN$1.68 per share on Friday, and the 52-week range is CDN$1.15 to CDN$2.90.