Analyst Comments on Full Circle (FULL) & Advanced Cannabis (CANN) Halt
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Price: $2.67 --0%
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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Full Circle Capital (NASDAQ: FULL) stock declined after Advanced Cannabis Solutions, Inc. (OTCBB: CANN) stock was halted. Full Circle confirmed it entered into a purchase agreement with Advanced Cannabis Solutions, Inc. to fund $30.0 million of senior secured convertible notes in January 2014. In conjunction with the closing of this agreement, Full Circle Capital purchased for $500,000 warrants to purchase 1.0 million shares of currently unregistered common stock of American Cannabis stock at a $5.50 per share exercise price.
Commenting on developments, analyst Andrew Kerai of National Securities said, "Details are relatively vague at this point, and CANN's management team claimed not to be aware of the reasoning behind the trading suspension when we spoke this morning. The SEC disclosed that "there are questions whether certain undisclosed affiliates and shareholders" may have "engaged in an unlawful distribution of securities" and, as aresult, enacted this trading suspension. We believe the recent increase in Full Circle's stock price was due to the increase in CANN's share price, and many of FULL's investors decided to sell their shares once this announcement was released."
"As a reminder, our price target of $8/share does not give the company any credit for its equity investment in CANN, which we believe is somewhat conservative yet prudent given the volatility in CANN's stock price and the fact that CANN's shares are not currently registered. While it is unclear where CANN's shares will settle once this suspension is lifted in two weeks, or if Full Circle will ultimately be able to realize a gain from its warrants, we will continue to value Full Circle based on its core lending business with potential realized gains from its equity positions as additional upside which may be realized over time," added the analyst.
National Securities has a Neutral rating on Full Circle Capital with a price target of $8.00
For an analyst ratings summary and ratings history on Full Circle Capital click here. For more ratings news on Full Circle Capital click here.
Shares of Full Circle Capital closed at $8.83 yesterday.
Commenting on developments, analyst Andrew Kerai of National Securities said, "Details are relatively vague at this point, and CANN's management team claimed not to be aware of the reasoning behind the trading suspension when we spoke this morning. The SEC disclosed that "there are questions whether certain undisclosed affiliates and shareholders" may have "engaged in an unlawful distribution of securities" and, as aresult, enacted this trading suspension. We believe the recent increase in Full Circle's stock price was due to the increase in CANN's share price, and many of FULL's investors decided to sell their shares once this announcement was released."
"As a reminder, our price target of $8/share does not give the company any credit for its equity investment in CANN, which we believe is somewhat conservative yet prudent given the volatility in CANN's stock price and the fact that CANN's shares are not currently registered. While it is unclear where CANN's shares will settle once this suspension is lifted in two weeks, or if Full Circle will ultimately be able to realize a gain from its warrants, we will continue to value Full Circle based on its core lending business with potential realized gains from its equity positions as additional upside which may be realized over time," added the analyst.
National Securities has a Neutral rating on Full Circle Capital with a price target of $8.00
For an analyst ratings summary and ratings history on Full Circle Capital click here. For more ratings news on Full Circle Capital click here.
Shares of Full Circle Capital closed at $8.83 yesterday.
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