Capital Mining goes cold turkey on pot again, shuts down cannabis arm
Health & Biotech
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Capital Mining is getting out of cannabis — again.
Capital’s shares have been suspended from the ASX since August 10 while it has worked on a cannabis deal and a new business called Capital Cannabis.
Capital Mining set up Capital Cannabis, its medical marijuana investment arm, back in March.
In June, Capital told investors that “under the leadership and direction of leading cannabis expert Cameron McDonald-Stuart, Capital Cannabis is currently in negotiations and/or undertaking preliminary due diligence with a number of diverse, high quality cannabis companies in North America.
“The Company is making strong progress and is confident that it will finalise a potentially high value opportunity in the cannabis sector in the near future.”
Five months later, Capital has pulled the pin on its cannabis ambitions and Mr McDonald-Stuart has exited.
Capital Mining has previously investigated buying a number of cannabis-related businesses as far back as 2015, but the deals were also cancelled.
“The company has made the decision to discontinue medical cannabis investment opportunities and is now finalising an exit from this business unit,” Capital told investors on Thursday.
“Capital anticipates the exit of CCL [Capital Cannabis] activities to be completed shortly, with an announcement made on or before 27 November 2017.”
Capital Mining is now, once again, focused on minerals — this time gold, lithium and cobalt.
The tortuous path to not doing a cannabis deal has involved almost threatening the ASX with a lawsuit for taking its time reviewing the new business, a fight with the ASX (and then the media) over consultancy fees, and the exit of two directors.
Given the company’s track record of attempting to get into cannabis, one wonders if this is the last attempt.