Canada based CordovaCann Corp. (CDVA.CN)‘s stock was one of the biggest gainers and soared over 22% after the company announced important business updates.
CordovaCann Corp., which is involved in producing a diverse group of cannabis products and aims to market it in the United States and Canada, announced a significant update today. In this regard, it should be noted that the primary business of the company is focused on providing capital and associated services to different companies in the ever-growing cannabis industry.
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However, in a new development, it has emerged that CordovaCann Corp. has completed the acquisition of related assets in Oregon. It is a highly important development since it now allows the company to turn into a vertically integrated cannabis company that cultivates cannabis, processes it and then retails the products that it has produced.
According to the announcement made by the company, the deal was financed through a combination of debt instruments totaling $100,000. The acquisition could propel CordovaCann Corp. into one the exclusive club of vertically integrated cannabis companies and if it can raise its production levels over the next few years, the company can manage to unlock even greater value for its shareholders.
The market seemed to have caught on to the long term implications of these acquisitions and after the news broke, the company’s shares rose by as much as 10% at one point. This is certainly a stock to keep an eye on over the coming days.
The Chief Executive Officer of CordovaCann Corp., Tax Turner provided further details about the deal. He said, “We are excited to have complete ownership of our Oregon operations and we look forward to utilizing our investment of over US $1,400,000 in expansion capital spent over the past year on these facilities. With 10,000 sq. ft. of indoor cultivation canopy and a 14,000 sq. ft. of processing and extraction facility, we expect to provide an expanded product offering to the Oregon market in the upcoming months.“