Would-be pot stock 1Page is not poor: it has $25m waiting for a home
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1-Page may be down but it’s not poor: it has $25 million in its cashbox.
It’s that money which the board claimed founder Joanna Riley wanted to “burn” when she tried and failed to roll the board a year ago.
(The board told shareholders in an ASX announcement last April that its “efforts to work with management and Ms Riley to lower the burn rate have not been successful, and at times actively obstructed… Ms Riley wishes for there to be a new Board, which presumably will support her intention to continue to burn cash.”)
Ms Riley later stepped down as CEO and ceased as a substantial shareholder in August when she sold $2.6 million in shares.
1-Page’s latest quarterly report released on Thursday shows it had $24.8 million in the kitty at the end of January.
It’s using this cash to pay €1.3 million ($2 million) for German medical cannabis company eHAPA Medical Group.
So far €430,000 has been paid as a non-refundable deposit.
1-Page (ASX:1PG) was a tech company which had a fall from grace that even Get Swift (ASX:GSW) hasn’t yet matched.
Silicon Valley based 1-Page surged 70 per cent on its ASX debut in 2014 — and then rapidly rose more than 2500 per cent to $5.69 in September 2016, amid intense speculation.
In its January quarterly report, the company said it was spending a bare minimum of its cash and solely on admin and corporate costs only.
The cannabis deal has completed yet but is dependant on due diligence and regulatory and shareholder approvals to do the deal.
1 Page will hand over 90 million shares (currently worth 16.5c each) as part of the deal and HAPA’s founders will come away with 37 per cent of the new company. Their shares will be escrowed for three years.