Wayland Group (CNSX:WAYL) (OTCMKTS:MRRCF) (FRA:75M) international buildout forged ahead on another front today, this time entering Argentinian soil. It’s yet another indication that the company is more aligned with Tier-1 cannabis from an operating perspective, than with its junior market cap peers.
The agreement places a huge swath of arable land under Wayland Group’s control. In all, 819 hectares of existing developed agriculture land in San Juan Province in Argentina will be purchased for $8.5 million USD, comprised of $4 million in stock and $4.5 million in cash (3,225,806 shares based on a $1.65 stock price). In acreage terms, that’s over 2023 acres—or about 88.15 million sq. ft. or potential grow space.
Outside of the headline details, not much has been elucidated in terms of licensing details or future road map. Medical cannabis became legal in Argentina in March 2017, although medicinal implementation has been slow. Aphria recently delivered 1,500 bottles of CBD oil to Hospital de Pediatria Garrahan in Buenos Aires, for clinical study use on treating refractory epilepsy in children—but widespread medical adoption is still in its infancy.
At the time, Company CEO Vic Neufeld previously proclaimed that, “Argentina will play a foundational role as Aphria cements its leadership in medical cannabis throughout the region.” Wayland Group views Argentina’s strategic importance in South America through a similar lens.
Wayland is implementing a long-term growth strategy based international operations centers which, it feels, will result in greater long-term profitability. While it doesn’t carry the same shareholder capital firepower to cement pricey acquisitions, the company has nonetheless burrowed into nearly as many international markets as many Tier-1s through shrewd purchasing. Of course, the litany of assets includes EU-GMP certification—allowing it to exportscannabis to member E.U. nations—and first-in advantage in jurisdictions such as the United Kingdom. So far, Wayland’s market capitalization belies its expanding global footprint.
At publishing time, Wayland Group was lower by $0.03 to $1.16/share (↓2.52%).
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.