A WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) (FRA:4WE) incubator investment is having a strong showing today on the Toronto Venture Exchange. Blockstrain Technologies Corp., a company focused on applying decentralized ledger technology to revamp the cannabis supply chain, is soaring today on its re-branded IPO opening day. Blockstrain Technologies was formerly Scorpion Resources Inc., before being reorganized via Reverse Takeover.
On its first day of trading, Blockstrain Technologies (TSE:DNAX) has surged higher by $0.75 to $1.05/share (↑250.00%). Almost half a million shares have traded hands, indicating at least moderate interest in the issue. Investors are apparently enthused about the company’s blockchain platform that registers and tracks intellectual property for the cannabis industry.
The highly-regulated cannabis sector could be a natural fit for such technology, as strain protection and genetic identification are major issues for growers, breeders, and regulators. Blockchain technology also promises cost savings advantages by streamlining administrative and reporting processes; Blockstrain believes administrative costs can be cut in half.
WeedMD’s involvement in Blockstrain Technologies is modest, yet significant. In March, WeedMD announced it had made a strategic investment in the latter, believing it to be “best positioned to protect our intellectual property by further validating and securing our best-in-class genetics”. Not only did WeedMD plunk down $500,000 on its Qualifying Transaction, they appear to be a client as well.
Furthermore, upon completion of the Qualifying Transaction, WeedMD Executive Michael Kraft was appointed as a director of Blockstrain, further strengthening ties.
Currently, WeedMD hasn’t reacted much on the successful IPO debut (↓1.00%), which isn’t surprising considering its modest stake. Still, it gives the company a potential tailwind for a stock which has been notably strong of late. It also gets the company in the game and provides an interesting partnership expansion opportunity going forward.
Whether the platform is successful—or ahead of its time—remains to be seen.
The strong showing by Blockstrain Technologies also has the potential to exact trickle-down effect on cannabis supply chain competitor BLOK Technologies Inc., which had been up $0.025 on the highest volume since late March (currently even). Most of that volume can right in the opening two minutes, where 123,000 shares traded hands. While it’s certainly too early to make any assertions, the association is interesting enough to keep tabs on. The first notable resistance is the $0.35 area.
Blok Technologies CEO Rob Dawson comments on the company’s involvement in the cannabis, fintech, and mobile banking space
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