Isodiol International Ord (CNSX:ISOL) Stock Halted; Substantial News Expected Next Week

Benjamin A. Smith
|

Something big is brewing with Isodiol International Ord (CNSX:ISOL) (OTCMKTS:ISOLF) (FRA:LB6A) stock. The pioneer of several cannabis nutraceutical and skin care firsts revealed that significant news is coming early next week, giving investors ample time to stew over the possibilities this weekend.

Following the Investment Industry Regulatory Organization of Canada (IIROC) halt of Isodiol International on April 10 “pending news”, today the company took the additional step of “clarifying” that the current halt was based on a management request pending “material” news. With trading not expected to re-open until next Tuesday, Isodiol will have been closed for 5 straight trading sessions. In normal business environments, week-long trading halts are generally considered unusual on Canada’s junior equity exchanges.

Furthermore, I checked into Isodiol’s history of trading halts going back to June 9, 2017, when the company officially changed its name from Laguna Blends Inc. and began trading under a new stock symbol. Of the 69 articles listed by GlobeNewswire—the company’s preferred news broadcaster—I failed to find one instance where the stock was previously halted.

During that time, it’s not like Isodiol International has been passive on the deal-making front. Several significant announcements have taken place, possibly qualifying as material in nature.

For instance, on January 11 the company announced a Letter of Intent to Import 99%+ Pure Pharma-Grade Cannabidiol to Canada From U.K. With Nuuvera Inc. (since acquired by Aphria Inc). Under the LOI terms, Nuuvera will import Isodiol’s CBD isolate to Canada, of which Nuuvera intends to import up to 30,000 kg of CBD isolate per month for commercialization purposes. This was a game-changing milestone in Isodiol’s corporate development.

Isodiol has also announced material deals and/or acquisitions with several private companies in the past year, including: Pot-O-Coffee brands, KURE Corp., Biosynthesis Bio Group, C3 Global BiosciencesBe Trū OrganicsBradley’s Bioscience Inc.Green Island Naturals (CBD assets).

Given that none of these past partnership or acquisitions necessitated trading halts, it’s probably safe to assume the pending news release is of much bigger caliber than anything Isodiol has disseminated before.

Whether the news is ultimately positive or negative we cannot say. We are spectators in this event like everyone else. However, by taking extra time to disseminate the news, the company is making sure all ducks are aligned (including legal considerations) before making a public acknowledgement. In my estimation, that points to major news which will likely have a large impact on the stock price.

Curiously, the halt is due to be lifted the day after Aphria Inc. announces their third quarter results on April 16, 2018 (conference call at 11:45 am). It was Aphria who announced it had acquired Nuuvera Inc. for $670M on January 29, 2018. Is there some type of connection? While we won’t engage in such conspiracies, we’d like to point out the retail rumor mill is swirling with such speculation. Likely, this is simply blind hope.

Aphria Inc (TSE:APH) CEO Vic Neufeld talks about the deal with Nuuvera and what it means to the valuation of the company

Midas Letter will continue to cover this emerging story as events warrant.

Additional Cannabis Investor Stories

How Canopy Growth Could Break $100 a Share

VIDEO: Cannex Capital Holdings CEO Anthony Dutton on Being the #1 Cannabis Producer in Washington State

Hydropothecary Corp (CVE:THCX), Aphria Inc (TSE:APH), MedReleaf Corp (TSE:LEAF) Finalize Significant Supply Deals in La Belle Province

VIDEO: Faircourt Asset Management Inc CEO Shares Favourite Cannabis Stocks

Benjamin A. Smith

Benjamin A. Smith

Ben is a research analyst and capital markets professional with nearly 20 years of experience. His areas of expertise are broad-based, and include extensive knowledge of macro economics, stock/derivative trading, commodity complexes, cryptocurrencies and technical/quant analysis. He also maintains an particular affinity for U.S. politics and the macro-regulatory environment facing...
More Info...

bsmith@midasletter.com |

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Free Newsletter,
Priceless Content.

Get more of Midas Letter delivered right to your inbox.

Special Offer

Sign-up today and receive free and immediate access to three recently published special reports!