CANN Group (ASX Code: CAN) on Fridays close had $411m market cap with its ODC licence and focused on cannibas medical side. Earns no revenue (see last quarterly) and expected to be long time before see any revenue from medical cannibas side.
QBL now has ODC licence with DA approved lab ready to be operational by end of year for medical cannibas side and then have cannibas food side where already have major contracts with Red Tractor supplying Coles and also distribution through online and other retail outlets for Vitahemp etc brands and just had first major harvest in April with next harvest expected to be double Aprils harvest. So early revenue / cash flow from hemp food side of business with exponential growth expected quarter on quarter from here already plus Canitab ready to go.
And then have Bauxite thrown in as wild card. QBL valued at fully diluted basis (ie ~3b shares) at $140m based on Fridays close or roughly 1/3rd of CAN valuation.
This is a value play for me as sold most of my shares when broke at open yesterday below 5.3 cents but bought most back at 4.6 and a little at 4.5 near the close. People are focussing on 3b shares when the only metric that matters is comparative valuations to other cannibas stocks and to me shows clearly undervalued. Especially for me when considering only fully integrated cannibas play justifies additional premium to share price valuation imho and why QBL my only weed stock invested in despite invested/playing in others at different times.
For value players/investors this as good as it gets.
QBL Price at posting:
4.6¢ Sentiment: None Disclosure: Held
