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Ann: THC Global Quarterly Update & Appendix 4C, page-10

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mdncanbs

48 Posts.

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03/08/20

08:17

Post #: 46254336
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Originally posted by stephaniemcd: ↑

This is a very interesting 4C for several reasons:

1. They have $9m cash in the bank
2. $4m debt secured against the Southport site
3. Their capital expenditure is only just about to begin to get the manufacturing site working - it's not unusual for large investment of the order of $10-$20m being needed for getting an extraction and manufacturing facility up and running.
4. They bought a clinic for a large sum of money to start selling their own products but then they made a large order of contract manufactured goods from MGC.
5. This suggests that they plan to import MGC products and pass them off as their own
6. They talked about acquiring 6000 patients by the end of the year - at the moment they appear to have next to none

I can't imagine them being able to keep the lights on for another year without 2-3 more capital raises to cover the costs of manufacturing.

Also what is disturbing is that they are simply manufacturing generic undifferentiated cannabis oil.

They should focus on products with some novel IP to create differentiation and some opportunity for premium pricing or they are otherwise just in a race to the bottom.

Thanks for reading my essay,
Stephanie

Expand

You do know the facility is operational right? what more capital expenditure do they need
they already said they have their own medicines so please tell me where it says in this announcement that they are selling MCG product as theirs?

maybe you got confused with Cann the con

Last edited by mdncanbs: 03/08/20

THC Price at posting: 28.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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