IPO 2.0 #futuregrowth #withoutCanopy, page-39

I stumbled across comments on Exilinol's cannabis oil on productreview.com.au and people talked about how cannabis helped them feel better. What I can say is that Exilinol has its own patented micro-encapsulation technology. Yet it has not even tried to produce hard capsules. It did not even mention about future hard capsules. In the product info, this company stated that the acid in the stomach would negatively impact the oil and reduced its effectiveness. This is probably why no one bothers with it.

I checked on a website that review stocks and the finance shows AusCann can last 3 years with its cash provided the cash burn rate is like what is happening now (with virtually no visible activity). I think that even if they manage to come up with the capsules and start trials 6-12 months down the track, the chance is that the trial will show no positive result (the hard capsules will no be superior to gel capsules). It will start burning cash rapidly as soon as it gets some activities going. The share price will move to the teens. Canopy only got 15c for a share and this is likely where the share price is heading.

I don't think the share price can hold high 20s for very long. It makes no sense. If they are sure the capsules will be available in Dec, they must be in frantic action to set up trials right now and set up marketing plan for early access ... There is zero reason to buy or hold this stock right now. Let's imagine that they announce the hard capsules ready for trial in Christmas. The next question is "Trialling on what?" They haven't got anything trial plan. It will be a small pop and then more selling on the news of no further planned activities.

The risk is so high now. One can enter at 26-27c and might get 1-2c up as it bumps along but a sudden drop of 10% will lock you in for buying more to average down and before you can get out, you are stuck and keep buying more down to the teens. I wanted to play a sucker rally but after this Canopy exit, the risk is too high. The market cap is still double the net asset and there is still no product.