Early trading in CanniMed Therapeutics (TSX: CMED) was disappointing, as the recent IPO broke its $12 offering price and traded below the $11.28 underwriters price. In the first half-hour of trading, the stock, which opened at $13.11 and traded to $13.18 before trading as low as $10.725, traded about 600K shares. The underwriters included Altacorp Capital as the lead along with Canaccord Genuity, Clarus Capital, Haywood Securities and Mackie Research Capital.
The $60mm deal, 5mm shares at $12, represented about 1/4 of the approximately 20mm shares outstanding for the company, which has a fully-diluted share-count of about 25mm shares. CMED is just the second Canadian LP to trade on the TSX, with the majority of the LPs trading on the TSX Venture. While the company is new to the public markets, it has a long history in the Canadian cannabis industry as the sole government provider under the old MMAR program. In its most recent financials, it reported year-to-date cannabis sales through its third quarter ending 7/31/16 in excess of $6mm, making it one of the leading LPs in terms of sales.
