Gold’s key fundamental driver
Barry Ritholtz is out with another article spelling more doom for the precious metals sector and the gold bugs.
The self-proclaimed “Gold Agnostic” penned a 2,500 word missive in January which followed a blog post amid the spring 2013 collapse titled “What are Gold’s Fundamentals.” For the record, Ritholtz’s calls on the markets and gold have been v…
Barry Ritholtz is out with another article spelling more doom for the precious metals sector and the gold bugs.
The self-proclaimed “Gold Agnostic” penned a 2,500 word missive in January which followed a blog post amid the spring 2013 collapse titled “What are Gold’s Fundamentals.” For the record, Ritholtz’s calls on the markets and gold have been very good. He was bullish during most of the 2001-2011 advance and sold out prior to the 2013 breakdown. But while the anti-gold bug mainstream eat up his gold analysis like a lap dog, we have to mention some errors and a startling omission of gold’s key driving force.
Despite having spilled tons of ink on the subject, Ritholtz has continually failed to mention the major driver of gold: the direction of real interest rates.
Ironically, Ritholtz often writes about following the data and avoiding narratives, yet he ignores this when discussing gold. Gold rises when real interest rates are negative or declining sharply — it’s simple to understand. If investors and fund managers can earn a real rate of return on a money market fund, CD, or bond, then there is no need for an alternative currency. If you can’t earn a real rate of return safely then you’ll seek alternative currencies such as gold and silver.
The venerable Ned Davis Research, as reported in Barrons yesterday, noted that real interest rates recently have turned favorable for gold. That is probably why they concluded that the bull is alive but wounded. Capital Economics, as reported by Frank Els, also notes in a report that the real yields have declined. I happen to agree with NDR’s view that the short-term technical situation is not conducive to speculative positions. A weekly close below $1200 would likely trigger that final washout.
Ritholtz’s arguments for the end of gold’s secular bull are surprisingly weak. Of course, none revolve around the end of negative real rates. He cites a chart and some commentary which regards the dollar rebound as potentially an epic squeeze.
This Business Insider style observation bears no reality. The U.S. Dollar index is up less than two points in the last month and the commitment of traders report does not show a huge speculative short interest conducive to a short squeeze. Ironically, the epic squeeze is likely to come in silver and on a lesser scale, gold. Gross short positions in silver reached a new all time high last week. Further weakness in both metals could setup a large short squeeze in the coming months.
Ritholtz’s conclusion (the bullish factors from 2001-2011 are gone) is incomplete and irrelevant. His five points help explain the bear market in gold, but none of them reveal anything about an end to negative real rates, which is the key driving force. If one wants to make a case that the secular bull is over, then they need to make the case that real rates have bottomed and will rise indefinitely. This is what happened following 1951 (commodity peak with gold price fixed) and 1980. With the latest uptick in inflation and decline in yields, real rates are again negative and trending favorably for gold.
Statistically speaking, inflation has almost no downside and has in fact started to trend higher. Core inflation in the OECD countries is at an 18-month high, while inflation in Canada is at a two-year high. The CPI and PCE in the U.S. have started to tick up. MIT’s Billion Prices Project, which has led the CPI at key turning points since 2009, has accelerated higher since December 2013. This implies the CPI has further upside. With regard to rates, we know that each 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} rise in rates equates to an additional $180 billion in interest costs. That is over 6{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of FY 2013 federal revenue. Policy makers want — but more importantly need — inflation to get the debt burden under control. Real rates were strongly negative for much of 1942 to 1949. Inflation surged while real growth stagnated, but we got the debt burden under control. It led to a tremendous uninterrupted equity advance from 1949 to 1956. However, that was after a rip roaring advance in hard assets.
Gold bugs will shamelessly promote anything as bullish while gold bears will mention anything, but the only fundamental that matters is negative real interest rates. The historical bear analogs, sentiment and negative real rates argue that the precious metals complex is nearing the conclusion to a cyclical bear market within a secular bull. If you’ve followed my work, you will know that I have been bearish since the hard reversal in March. Patience and discipline will be the name of the game over the coming weeks. Discipline is required to exit hedges at the right time while patience is required to buy as low as possible. I am looking at JNUG (3x long GDXJ) as well as several juniors I believe have exceedingly strong upside potential over the coming quarters and years.
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- Published in Mining
Copper leans lower
Copper (COMEX:HG) fell the most in five weeks in New York as signs of slowing economic growth in Europe fueled demand concerns.
Gross domestic product in the 18-nation currency bloc rose 0.2 percent last quarter, down from a revised 0.3 percent gain in the previous three months, the European Union’s statistics office said today. European Central…
Copper (COMEX:HG) fell the most in five weeks in New York as signs of slowing economic growth in Europe fueled demand concerns.
Gross domestic product in the 18-nation currency bloc rose 0.2 percent last quarter, down from a revised 0.3 percent gain in the previous three months, the European Union’s statistics office said today. European Central Bank policy makers meet tomorrow to decide on stimulus and interest rates as they try to rekindle the economy and prevent deflation. Copper has dropped 8.9 percent this year amid global growth concerns.
“Deflationary expectations could possibly reverberate from this European situation,” Adam Klopfenstein, a senior market strategist at Archer Financial Services in Chicago, said in a telephone interview. “The market is embracing that phenomenon.”
Copper futures for delivery in July slid 1.4 percent to settle at $3.093 a pound at 1:19 p.m. on the Comex in New York, the biggest slump since April 30. On the London Metal Exchange, copper for delivery in three months fell 1.2 percent to $6,785 a metric ton ($3.08 a pound).
Of 50 economists surveyed by Bloomberg News, 44 expect the Frankfurt-based ECB to become the first major central bank to take interest rates into negative territory. The ECB will announce its rate decision at 1:45 p.m. in Frankfurt tomorrow.
Copper fell 1.1 percent yesterday in New York on signals that factory demand will ease in China, the world’s largest consumer of industrial metal.
Orders to remove the metal from warehouses monitored by the LME declined for a seventh session, to 70,525 tons.
Aluminum, zinc, nickel, lead and tin slid in London.
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- Published in Mining
Strike curbs palladium supply
South Africa’s most costly mine strike ever compounded the longest global production shortfall in 14 years for palladium, just as automakers are set to use record amounts of the precious metal.
Output of the commodity used mostly to cut auto emissions will trail demand by an all-time high of 1.6 million ounces in 2014, after the strike idled 60 p…
South Africa’s most costly mine strike ever compounded the longest global production shortfall in 14 years for palladium, just as automakers are set to use record amounts of the precious metal.
Output of the commodity used mostly to cut auto emissions will trail demand by an all-time high of 1.6 million ounces in 2014, after the strike idled 60 percent of supplies from the world’s second-largest producer, according to auto-catalyst maker Johnson Matthey Plc. Prices that gained 17 percent since January and touched a 13-year high yesterday may jump another 15 percent by year-end to $950 an ounce in New York, a Bloomberg survey of 15 analysts showed.
Even after miners agreed today on a wage deal in a bid to end the walkout that began in January, Morgan Stanley says output deficits will last through at least 2018 as surging car sales from North America to China boost demand for catalytic converters. Barclays Plc predicts automakers will use a record 7.19 million ounces in 2014. Investors have boosted holdings in exchange-traded funds by 40 percent since March.
“The car manufacturers are demanding more, while the supply situation is worsening by the day,” Paul Christopher, the St. Louis-based chief international strategist at Wells Fargo Advisors LLC, which manages $1.3 trillion, said May 23. “Even after workers return, output from Africa will be lower as mines have been damaged. Palladium will be one of the strong performers this year.”
Best performer
Futures have rallied 16 percent this year to $833 on the New York Mercantile Exchange, out-gaining all other metals except nickel. Prices yesterday touched $864.60, the highest since February 2001. The Standard Poor’s GSCI gauge of 24 commodities rose 3.5 percent since the end of December, while the MSCI All-Country World Index of equities is up 4.3 percent. The Bloomberg U.S. Treasury Bond Index added 2.7 percent.
The world’s three largest platinum companies and the biggest union at their South African mines agreed on a wage deal that the labor organization will take to its members in a bid to end a 20-week strike
Tougher environmental laws mean 90 percent of new vehicles have catalytic converters that are made mostly with palladium in gasoline-fueled engines, while a related metal, platinum, is used for diesel. Auto catalysts will accounted for 72 percent of world palladium use last year, Johnson Matthey estimated.
Global sales
Global sales of cars and light commercial vehicles will rise 5 percent this year to a record 88.4 million and expand 5.4 percent further in 2015, according to forecasts from LMC Automotive Ltd. Passenger-vehicle sales in China, the largest auto market, rose 14 percent last month, the most since February, China Association of Automobile Manufacturers said.
Rising use of palladium by carmakers means mine output and supplies of recycled metal will be less than demand for a third straight year, the longest supply deficit since 2000, forcing buyers to dig deeper into inventories, Johnson Matthey estimates. The 2014 shortfall will be more than twice as big as last year, data show.
Autos will use 7.223 million ounces this year, up 87 percent from 2005, while 1.967 million ounces will go to chemical, dental, electronics and jewelry industries, Morgan Stanley said. Demand for palladium in vehicles has surged over the past decade while platinum use has dropped.
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- Published in Mining
Vale gets permission to open new plant
Vale SA, the second-biggest nickel producer, got permission to restart its New Caledonia plant.
The island archipelago’s Southern Province government granted permission to restart, Cory McPhee, a Vale spokesman in Toronto, said by e-mail today. He said he couldn’t provide more information. Processing operations there stopped after an acid solution s…
Vale SA, the second-biggest nickel producer, got permission to restart its New Caledonia plant.
The island archipelago’s Southern Province government granted permission to restart, Cory McPhee, a Vale spokesman in Toronto, said by e-mail today. He said he couldn’t provide more information. Processing operations there stopped after an acid solution spill, the company said May 8.
Vale, based in Rio De Janeiro, said in November that it planned to produce 40,000 metric tons of nickel this year at the New Caledonia site, formerly known as Goro, in the southwest Pacific Ocean. Nickel prices jumped as much as 56 percent this year after ore shipments were banned by Indonesia, the top miner. The global market will swing to a deficit in the second half of 2014, Macquarie Group Ltd. said last month.
Nickel for delivery in three months rose 1.6 percent to $19,200 a ton at 4:03 p.m. on the London Metal Exchange, headed for a 2 percent decline this week. The metal fell as much as 0.5 percent earlier today. OAO GMK Norilsk Nickel in Russia is the largest producer.
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- Published in Mining
New ECB policies will likely hamper gold prices
The U.S. Comex gold futures jumped 0.72{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to $1,253.30 on Thursday after the ECB cut the interest rates to unprecedented levels. The gold futures have risen 0.62{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this week while the SP 500 Index has jumped 0.92{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and the Euro Stoxx 50 Index has climbed 0.81{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The Commodities Index has declined 0.40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} for the week while the Dollar Index was flat. The…
The U.S. Comex gold futures jumped 0.72{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} to $1,253.30 on Thursday after the ECB cut the interest rates to unprecedented levels. The gold futures have risen 0.62{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this week while the SP 500 Index has jumped 0.92{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and the Euro Stoxx 50 Index has climbed 0.81{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The Commodities Index has declined 0.40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} for the week while the Dollar Index was flat. The U.S. 10-year government bond yield has risen 11bp week-to-date. The 10-year German Bund yield jumped to the week’s high of 1.43{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} on Wednesday before rallying to 1.402{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} on Thursday after the ECB announcements.
ECB Delivered More than Expected The four main central banks of the world are embarking on quite diverse paths. The ECB surprised the market a bit on Thursday by cutting the deposit rate to minus 0.10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} and the benchmark rate to 0.15{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. In addition, the ECB has initiated a Euro 400 billion lending program to allow banks to borrow at a cheap rate for as much as they want until the end of 2016, and the ECB will stop sterilizing its bond purchases. The market expects the bond QE to come later. The U.S. Fed is tapering its bond purchases while the Bank of England is looking to hike and the Bank of Japan is maintaining its asset purchases. While gold prices have rebounded temporarily, the widening yield gap between the U.S. rates and those of other countries may strengthen the U.S. Dollar, which will put a damper on gold prices.
Dwindling Interest in Gold The U.S. Comex gold open interest was at a five-year low in early April this year although the level has rebounded 5.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} currently. According to Bloomberg, the gold-backed ETP holdings fell $2.6 trillion in value in May while the global stocks added $1.1 trillion. The 100-day volatility of the gold futures reached 13.407{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}, the lowest level since the end of 2012. Reduced political upheaval and the global stock market rally have reduced the demand for gold.
What to Watch We will be monitoring the May U.S. non-farm payrolls and the unemployment rate on 6 June, Japan’s Q1 real GDP on 8 June, China May inflation rate and M2 growth on 10 June, the Eurozone April industrial production and the May U.S. retail sales on 12 June as well as the May China fixed asset investments, retail sales and industrial production on 13 June.
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- Published in Mining
Gold and silver stocks begin next leg higher
Yes you read that correctly. The miners have begun another leg higher because the evidence strongly supports the view that they have formed a higher low. Only time will tell for sure but the evidence is quite strong. It seems that every analyst was calling for a July low. I felt strongly that the miners would make their next low after…
Yes you read that correctly. The miners have begun another leg higher because the evidence strongly supports the view that they have formed a higher low. Only time will tell for sure but the evidence is quite strong. It seems that every analyst was calling for a July low. I felt strongly that the miners would make their next low after Gold(COMEX:GCN14) broke below $1,200. I was far more confident in the bullish case at the June 2013 and December 2013 bottoms. I was even skeptical after Tuesday’s upside explosion. However, the weight of the evidence today argues that the miners have made a higher low and are starting their next leg higher.
First let’s look at GDXJ, which is showing leadership. I want to highlight three bullish points. First, the volume has been huge. Weekly volume will be a record. Daily volume was near records the day before GDXJ bottomed (May 27) and the day it bottomed (May 28). After Monday it appeared the miners could head lower. Tuesday GDXJ gapped up and closed at the high of the day on huge volume. Wednesday’s volume dipped only slightly while Thursday’s volume was an all-time high! Strength was followed by strength. The second point is that Tuesday and Wednesday’s explosions came with the metals being up less than 1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in that entire period. The shares are showing excellent relative strength at a time when the metals are in a weak technical position. Third, note that GDXJ is set to close at a 12-week high. That is quite a bit of strength only two weeks after a low. The initial rebounds from the previous two lows were much weaker in size and intensity. GDXJ’s next resistance is $44. A weekly close above $44 marks a higher high.
Meanwhile, history argues that its likely that the bear in the miners is over. The current bear would be the third longest ever. The two longest bears were the longest because their price damage was mild until the tail end. It’s not impossible that the current bear could roll over to a final low. We thought that was possible until Wednesday. However, given the aforementioned strength in the sector, it seems highly unlikely.
The action in Silver(COMEX:SIN14) and the silver stocks also leads me to believe that the near term risk reward strongly favors the upside. We’ve been waiting for Silver to break below $18 because we believe it would mark a clear end to its bear market. Silver recently closed at an 11-month low and the same week closed Friday at $18.82, which marked a new weekly low for the bear market. Silver has since failed to decline further. The metal has started to rally and it could spark a short squeeze. Gross short positions reached a new all-time high in each of the past two weeks. Moreover, the chart below shows the positive divergence in the silver stocks. While Silver tested its June 2013 low, SIL and SILJ were trading well above their lows.
The weight of the evidence argues that precious metals shares and likely Silver have seen their low and are headed higher. GDXJ and Silver peaked more than three years ago. GDXJ declined 81{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} while Silver’s bear market was nearly its worst excluding its 1980 collapse. The outright strength in the stocks cannot be disputed. It was not a one day event. The stocks led the metals down and are now in position to lead the metals higher. With that said, the only fly in the ointment for me is Gold which peaked last, is technically weak and still carries some speculative interest. I would not be surprised to see it break lower before the entire sector moves aggressively higher. Regardless, our view is the stocks have formed a higher low and that pullbacks should be bought. They don’t ring a bell at the start of a new bull market and by nature analysts and pundits won’t be in agreement when it starts.
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- Published in Mining
What you need to know before markets open
U.S. stock index futures fell on Tuesday, suggesting investors continued to search for direction following a sharp rally that took indexes to records last week.
U.S. stock index futures fell on Tuesday, suggesting investors continued to search for direction following a sharp rally that took indexes to records last week.
• Equities had a quiet session on Monday, with trading volume light and moves so slight the S&P 500 had one of its narrowest intraday trading ranges ever, according to MKM Partners. That came after a six-day rally on the S&P that ended Friday, its longest streak since mid-April.
• While Wall Street’s trend upward was still viewed as intact, investors looked for fresh catalysts to justify more robust gains, and recent economic data has been mixed.
• U.S. single-family home prices rose less than expected in April, a closely watched survey said on Tuesday. The S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.2 percent in April on a seasonally adjusted basis. A Reuters poll of economists forecast a gain of 0.8 percent following gains of 1.2 percent in March.
• Confidence is seen coming in at 83.5 in June, little changed from 83 in May, while new home sales are seen rising modestly in May; this follows Monday’s much stronger-than-expected report on May existing home sales. Home prices, based on the S&P/Case-Shiller composite index, are seen up 0.8{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} in April.
• S&P 500 e-mini futures fell 4.5 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average e-mini futures fell 23 points and Nasdaq 100 e-mini futures lost 7.5 points.
• Micron Technology Inc late Monday reported third-quarter results and a revenue outlook that both exceeded analysts’ expectations. The stock, which is up 43.7{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} this year and more than tripled over 2013, edged 1.6{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} lower to $30.75 in premarket trading.
• Abbott Laboratories agreed to buy Russian drugmaker Veropharm for up to $495 million.
• Bloomberg reported that Apple Inc suppliers will begin producing larger versions of the iPhone in China next month. The stock dipped slightly in premarket trading.
• Investors continued to eye geopolitical tensions in Iraq and Ukraine. German business sentiment weakened more than expected in June as concern grew among companies in Europe’s largest economy that tensions in the regions would hurt their business.
© Thomson Reuters 2014
- Published in Business
Party On! GoPro Resumes Torrid Climb On Day 2 After IPO
Source: Forbes
Looks like there was still plenty of enthusiasm left for GoPro after its first day of public trading.
While GoPro shares popped 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} on Thursday, Friday morning saw investors chasing even higher prices. The stock price briefly surged above $40 before falling back to around $37.50 at just past noon EDT — still up 20{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} on the day and over 50{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} from the IPO price. click here to read the full article
- Published in Blog
CannabisFN Executive Interview | Cannabis Technologies (CANLF)
Since the writing of this article, C.CAN has begun trading as C.IN “InMed Pharmaceuticals.”
TDM Financial
In this segment we will be talking to Mr. Craig Schneider, CEO of Cannabis Technologies.
Cannabis Technologies is a biopharmaceutical drug discovery and development company uniquely focused on the pharmacology and therapeutic potential of cannabinoids.
CTI is utilizing its proprietary “Cannabinoid Drug Design Platform” to identify new bioactive compounds within the marijuana plant that interact with certain genes responsible for specific diseases.
Their extensive research and intellectual properties will initially be focused on the development of several new cannabinoid based treatments for Ocular Cancer and Angiogenesis, as well as Inflammation and Pain.
Cannabis Technologies is a publicly traded company listed in the US under ticker symbol CANLF.
- Published in Medical Marijuana
Highmark Enters Into a Binding Letter of Intent to Acquire BCBUD Producers Inc.
Highmark Marketing Inc. (CSE:HMK) (“Highmark”) is pleased to announce that it has entered into a binding letter of intent (the “Letter”) with BCBUD Producers Inc. (“BCBUD”) to acquire 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the authorized share capital of BCBUD (the “Acquisition”) from BCBUD’s shareholder, Blue Moon Advertising Inc. (“Blue Moon”).
BCBUD has prepared an application to become a licensed producer (“LP”) of marijuana and has informed Highmark that it is ready to file the application (the “Application”) under the Marijuana for Medical Purposes Regulations (“MMPR”). Highmark will cover BCBUD’s business costs relating to the Application up to a maximum of $100,000.
Highmark Marketing Inc. (CSE:HMK) (“Highmark”) is pleased to announce that it has entered into a binding letter of intent (the “Letter”) with BCBUD Producers Inc. (“BCBUD”) to acquire 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the authorized share capital of BCBUD (the “Acquisition”) from BCBUD’s shareholder, Blue Moon Advertising Inc. (“Blue Moon”).
BCBUD has prepared an application to become a licensed producer (“LP”) of marijuana and has informed Highmark that it is ready to file the application (the “Application”) under the Marijuana for Medical Purposes Regulations (“MMPR”). Highmark will cover BCBUD’s business costs relating to the Application up to a maximum of $100,000.
BCBUD has an option to lease a 27,000 square foot building in the Township of Langley, British Columbia. The property is zoned M-2, and when the facility is operational it could be capable of producing up to 2,000,000 grams (4409 pounds) of medical marijuana per year with the additional possibility of expansion adjacent to the site.
BCBUD cannot legally become a producer under the MMPR Act until it has been granted a license, and it is currently not known if and when BCBUD will obtain that license. The key milestones to obtaining a LP license include filing an application, receiving a “Ready to Build” notice, completion of the upgrades as per the application, approval to produce upon inspection of the facility, and finally approval to distribute the product to patients. Bill Marshall, President of BCBUD, has gained extensive experience with MMPR applications while working with one of the most prolific consultants to prospective licensed producers. As the Senior Person in Charge he will be responsible for advancing the application in a timely fashion, and will have the support of the Highmark team during this process. Highmark has agreed to issue 250,000 Common Shares of Highmark to Blue Moon at the time the Application has been filed by BCBUD with Health Canada.
Once the “Ready-to-Build” notice has been received from Health Canada, Highmark will have 3 months to complete the Acquisition by issuing 2,250,000 Common Shares of Highmark to Blue Moon (the “Acquisition Shares”). If Highmark completes the Acquisition, it has committed to funding another $1,500,000 for upgrading the security, electrical, plumbing, ventilation and other improvements as per the application. At the point of receiving the “Ready to Build” notice Highmark intends to seek an equity financing in the amount of $1,500,000 to meet its obligations. In the event that a license to produce marijuana is not received within 18 months, the Acquisition Shares may be subject to cancelation.
About Highmark
Highmark is a nutraceutical company, based in British Columbia, focused on bringing the health benefits of natural and herbal remedies to the market. Highmark intends to acquire, license, distribute, and market products in the nutraceutical industry.
Further information about Highmark is available under its profile on the SEDAR websitewww.sedar.com and on Highmark’s page on the CSE website.
The CSE has not reviewed, nor approved or disapproved the content of this press release.
Forward-Looking Information:
This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of Highmark. Forward-looking information is based on certain key expectations and assumptions made by the management of Highmark, including future plans for acquisitions. Although Highmark believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Highmark can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. Highmark disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirements.
Highmark Marketing Inc.
Marc Branson
Chief Executive Officer
604.283.1722
info@highmarkcorp.ca
- Published in Medical Marijuana
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