I had a chat with Executive Director, Darryl Davies, who doesn’t mind the contents being shared with co-holders on here. Obviously, he can’t answer all questions and is limited in what he can say, but he did provide answers where he could.
Overall, it was a positive conversation.
First and foremost, Darryl is here to stay and lead this company’s progress to the next level. In fact, in his own words, Dr Sud, he & the executive team will be “using the same playbook” which has achieved jaw dropping success at IHL.
We can all form our own conclusion on the “IHL playbook” here. My take is IRX’s future will be a new patented medical grade inhalation device and patentable medicine(s) to go hand in hand with said device.
These are obviously the medium and long term plans the company informed us of in their recent presentations.
I draw the patent conclusion from hours of research from when Cannvalate entered the IHL register in March, 2019. Not long after, IHL started shifting its focus away from mouth-guards, cannabis oils and onto trials with patentable synergistic medicines containing medical cannabis.
The only difference is we will have a delivery device.
If we ignore the share price, and simply compare both companies’ current market capitals, it reveals a glimpse of what kind of spectacular growth may lie ahead if that playbook still works.
The current vape is not the company’s focus. The company’s main focus is on research and development; getting both the new device and medicines ready for the trials; in short, we are still in the feedback, adaption & perfection phase; nothing is ready for commercialization but things are progressing, however.
As a result, the company is offering white label pods for companies who produce basic CBD and THC c-liquids. Legally, the company still does not have the power to sell oils; only pods and the margins aren’t anywhere near what the company could achieve if it had the power in its constitution and also obtains the appropriate medical cannabis licenses.
My understanding is these changes are being seriously considered, but again the focus is on the medium and long term goals, so that may or may not occur.
Personally, while it’s disappointing to see a lack of progress on the vaping side of things, having looked at updated TGA figures for medical cannabis prescriptions, it’s abundantly clear vaping c-liquids has not taken off in Australia. Oils are still number 1 and there is exponential growth for flower, which can be smoked or vaped with a dry flower vaporizer, which we don’t have.
(As an aside, I can’t understand why patients would risk their health by consuming “medical” cannabis this way, but it is what it is. In the future who knows and things may change?)
Again, I draw the conclusion that IRX is aiming for patents because competition is already here and will only continue to grow for what little market share there is, so by having a medical grade device and medicines that offer something medically special can position IRX well above its competition in the eyes of medical doctors, patients, and investors.
Of course no one can guarantee IRX will be the next IHL, but when one considers there is a similar team at the wheel plus the addition of GW Pharma's Dr Andrew Saich as well as TerrAscend's unicorn founder Vijay Sappani, it's hardly far-fetched to envision what the ugly duckling could become.
My family have put our trust in this all star team and will continue to add on any further share price weakness.
Imo & Gltah
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