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This is being derailed again so I am reposting the original post I had. Except this time I am taking out an reference to VC. So if we want to move past VC let's have a look at the rest of the company. Let's attack the rest of it shall we! During all this it is fascinating that the Malta deal is being overlooked. A 3.5 million Euro profit a year once constructed and crops harvested. Not a bad return on investment on the $5 million aud that was raised.  

Strength​

s​

1. Mabsult revenue - next quarter 3 x $87, 000 = $261, 000​

2. Sales of Derma Products - slow but present - partnership with Cult beauty may grow $81 000​

3. Money set aside for production of goods for the quarter jumped .5 million dollars​

4. $12 million cash in bank​

5. GMP interim already awarded​

6. HL Pharma - Australian Distribution License​

7. Lenis - 5 year deal​

8. Botanic - already harvesting​

Malta Facility- 4000 m2, 1.5 tonne biomass, 3 crops a year. That costs about 1.8 million to produce and currently on the German market would sell for 5.2 million. profit 3.5 million Euro​

   Panax (Czech Facility) - producing 400 kg of high grade MM - profit 920 000 Euro​

   Slovenia - 5000 m2 - producing hemp - figures are not as good as open field and lower quality used for nutraceuticals​

Weakness​

1 1.2 billion share on offer​

2. Aust Licenses application taking a long time​

4. California Deal - lack of understanding of what happened leads to magnification of previous point. The California deal was signed when political climate in USA seemed certain and as such the progress of MM was foreseeable. With Trumps election and Sessions appointment this went out the window. Management made a prudent decision(based on legal advice) to not to proceed given the uncertainty.​

Opportunities​

1. European markets - huge potential - 200 million people already have access to legalised MM​

- 800 million people population in Europe​

- European market is difficult to access due to complex legislation both from the European Union and individual country stand point. This barrier to market works in our favour as it reduces competition.​

- we have 3 sites already ​

2. Cannepil Sales - Once GMP awarded (which we have no control over that timeline) then hopefully Q4 2018 sales begin. Potential 1 m revenue + a year​

3. Nutraceuticals - High volume potential growth​

4. Sale of Derma - rumour that Canadian firms are circling​

5. RMIT collaboration - the focus is on Melanoma Treatment - Potential is great​

6. GMP - Development of further medications​

7. North American Deal - hinted in Finfeed interview​

8. Australian facility - hinted in the Finfeed interview​

Threats​

1. Legislation changes as what happened in the USA​

2. Competition - although somewhat mitigated by being in Europe​

3. Failure of corporate deals such as Varm etc​

4. Cash burn​

Timeline Catalysts​

Q2 Nutraceuticals Full Launch​

H2 2018 - Malta Construction​

Q4 2018 - Cannepil Sales​

2018 - Product launch in UK and North America​

Anytime - Australian License, N. American Deal,​

Share Price​

The share price has dropped, IMO, because a combination of factors mostly due to psychology of investors ​

Investors are impatient, they want this company to skyrocket. It has threatened a couple of times to multi-bag but pulled back. Guess what? that is what shares do. Investors take profits. The market is irrational; as the SP drops people get negative and it becomes a self-fulfilling prophecy.  Until such time as an announcement changes sentiment. The story hasn't changed, in fact it has gotten better. Look at the Malta deal and potential sales from biomass alone.​

End of year - as the patience of investors wears thin, the end of year fast approaches. People decide to take the tax loss sending share price down. And on their way out bag out the company on forums!!! ​

MXC​

If you invest in this company or any MM company make sure you understand what you are investing in. MXC is a very different company to the others on the market. MXC is a pharma business. It is focussed on high quality MM products that have high gross margins and high profits. Other businesses that are focussed on hemp products/food products are not even worth comparing to MXC. That is not a negative, it is just that they are a different market place. They produce large amounts of biomass which is low quality for goods that have low profit margin. They want to move large volumes of product. It is an easier process to do this and as such they have more competition especially in market places such as North America or Australia.​

It is important to remember that cannabis is not one simple species. It has different strains with different genetics. One companies products are not necessarily the same and do not have the same potency or effects on diseases. In order to ensure you have the best genetics, you need the research and the best place to research is universities. The RMIT deal is the sleeper for MXC especially now it seems the focus is melanoma. Other companies who focus on mass produced plants won't have the same IP that MXC will have.​

MXC management has shown that they are able to negotiate deals with companies, universities and government. They have been able to create a European manufacturing base. The company has a clear path forward and a clear path to profit. The issue is that it will take time as anything high quality does. This is why the company is an attractive investment proposition. For those who have strong hands, patience and are forward thinking. ​