Effective October 1, 2018, it will no longer be possible to trade cannabis stocks via German stock exchanges, where Clearstream Banking S.A. is involved as a depository of the securities. The Luxembourg-based clearing house announced that it will stop, “for legal reasons” (originating from Luxembourg’s local financial regulation authority CSSF), to “settle and safekeep securities where the main business is connected directly or indirectly to cannabis and other narcotics products”.
Last Friday, Clearstream added to the confusion by announcing that the restrictions will not be applied to “securities where the main business consists of medicinal cannabis”. As the recreational use of cannabis is currently legal in 9 US states, plus the District of Columbia, and will be legal in all of Canada later this year, CSSF and Clearstream burden themselves with the work of trying to discriminate between cannabis companies on a global scale. Who are they trying to protect? The Grand Duchy of Luxembourg legalised cannabis for medical use last Friday, whereafter Clearstream reacted with adjustments.
This also means that public investment vehicles like Zimtu Capital Corp. are not affected, despite holding investments in cannabis companies, because Zimtu’s main business is not cannabis but mining properties and public company investments. The Vancouver-based prospect generator may now capitalize on this window of opportunity, e.g. by divesting from non-core holdings and reinvesting into the cannabis space.
Since True Leaf Medicine International Ltd. (CSE: MJ) went public in 2015, Zimtu Capital was a cornerstone investor and currently holds 1.1 million shares (worth $606,685 CAD at today’s price) of this revenue generating hemp company that is now building a cannabis cultivation and production facility in Lumby, British Columbia.
Zimtu also holds 8.4 million shares and 4.4 million warrants of King’s Bay Resources Corp. (TSX.V: KBG), a company considering business in the cannabis space. Without having announced any cannabis deals as of today, alone the 8.4 million shares have a current market value of $420,057 CAD.
Link to updated chart version (15. min delayed): http://schrts.co/D19NYb
In light of Zimtu’s investment portfolio consisting of more than 50 publicly traded companies, with a current market value of approximately $7.5 million CAD, and Zimtu’s own market capitalization of $4.5 million CAD, the timing could be perfect to look at this tightly held, revenue generating investment issuer.
Below portfolio summary includes current prices, whereas the share holdings date back from the last Financial Statements of February 28, 2018. Hence, the table does not include new investment positions, such as Margaret Lake Diamonds Inc. (TSX.V: DIA; current market capitalization: $4 million CAD) and the manganese junior Maxtech Ventures Inc. (CSE: MVT; current market capitalization: $14 million CAD).
Zimtu is also involved with a new company at the moment, Dimension Five Technologies Inc., which also shows that Zimtu is diversifying into the highly attractive and lucrative tech markets. This startup, which most recently closed it seed round financing, is developing and will operate a financial software platform. Their core focus is creating a state of the art equity trading information platform to assist investors in comparing and reviewing stocks.
Over the last few years, Zimtu has developed the ZimtuADVANTAGE, an online platform where you can follow stocks that trade both in Canada and in Germany, comparing stock prices and trading volumes on all exchanges, so you have the opportunity to benefit from early warnings arising from the time differences between the two markets.
For example, when you click on BROWSE CATEGORIES and select ALL from the menu, those stocks show up at the top of the list which traded the most shares today in Germany (volume leaders in Germany). If a stock trades high volumes in Germany, Canada may follow later on (et vice versa).
You can also select your own criteria to create your own list, for example showing the volume leaders in Canada, or the biggest stock price % change in Germany or Canada, or which companies published latest news.
The drop down menu also lets you select different kinds of CATEGORIES, such as Cannabis, Lithium, Cobalt, Tech, showing only those stocks whose main business is within those industries. You can also see all Zimtu Holdings in one list, whereas you can also create your own lists, e.g. your personal watchlist and portfolio, so that you can follow where the action is at both sides of the ocean. As you will experience yourself, this online platform is unique and full of opportunities for investors.
Discover all of the features by registering for free.
Effective July 1, 2018, Zimtu has sold this online platform to Dimension Five, but has retained a license agreement for its use. It remains to be seen how revenues will be generated with this online platform. Advertising is probably a good idea. I think that even more value can be created if REAL-TIME quotes, charts and market depths can be offered at relatively inexpensive rates, or even for free thanks to cross-financing with advertising for example. Additional discussion boards could make this thing go viral, both in Europe and North America.
What makes Zimtu Capital so special is that the company is already making money, and its relatively low number of shares in the market (only 15.4 million shares issued and outstanding) which has not changed materially for years.
Mike Kachanosvsky hit the nail on head with his latest article “Zimtu rises from the rocks and weed”, which is copied below. Enjoy and profit!
The article “Zimtu rises from rocks and weeds” originally appeared in Investor’s Digest of Canada, an investment advisory that can be found at adviceforinvestors.com
The original cover picture was sourced from Hightimes.com
Zimtu Capital Corp.
Suite 1450 - 789 West Pender Street
Vancouver, BC, V6C1H2 Canada
Phone: +1 604 681 1568
Email: email@example.com (Scott Rose)
Shares Issued & Outstanding: 15,394,483
Canadian Symbol (TSX.V): ZC
Current Price: $0.29 CAD (06/29/2018)
Market Capitalization: $4.5 Million CAD
German Symbol / WKN (Tradegate): ZCT1 / A0RDR9
Current Price: €0.191 EUR (06/29/2018)
Market Capitalization: €2.9 Million EUR
Disclaimer: Please read the full disclaimer within the above mentioned full research report as a PDF (here), because fundamental risks and conflicts of interest exist.