Finally something I can answer Pinnacle. I am not comparing this to other companies. I am comparing this to a profitable, scalable business model.
There are thousands of reasons for peer justifications like you're trying to do and it's a poor valuation method in a fledgling industry like this because the lack of details, speculation and technology/licensing gaps are so far apart.
I was just looking at the half yearly as someone who aims to find companies that are on a path to making profit. This has been successful for me. I invested in CNW very early, when they weren't making money, and have since tripled in price.
I invested in MWR, which was not making money, and now they have gone up 10x in price.
What I am looking for here, and in every spec stock, is a pathway of the company to make money. It may not be immediately, it could be 2,3,5 years down the track. But there has to be a path. So far, the hemp side of this venture has proven to be hard to scale, their costs have swelled exponentially faster than their sales, despite it being an easy product to get off shelves. Simple scaling doesn't seem to be helping the Hemp.
Will the MM side provide the path? I don't know, thus the questions. So far the Medcan deal has gone back to a deal where CGB is putting money in and gets no ownership, which seems like a poor deal. Beyond Medcan, I can't see where CGB has licenses to manufacturer, export and eventually Sell, and even Medcan I believe is missing 1 permit?
So I'm just wondering what is the path to profit, especially with the company losing 5million last half, being in a current net asset negative position and being 5/6th of the way through the next half, which may mean all their existing cash reserves are gone and close to spending their entire proposed capital raise, all in 1 year. If that doesn't concern you, as an investor, I must admit you're a much braver person than I am.
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