MMJ will have an additional $2.5M cash at bank to use on Phytotech and administration. Hopefully pushing more deals in Australia and entering into binding deals with:
- Epilepsy Australia - greater chance of this once phase 2 clinical trials are known)
- Fresh Therapeutics Compounding Pharmacy (Letter of intent was signed to facilitate import and dispensation of MMJ products in Australia)
Other Australian bodies promoting the uptake of MC products as legislation continues to open the doors to the MC market.
Whilst people have been referring to the loss of 31% as a negative... please think about:
- Currently UG/Satipharm are worth only around $40M in value whilst the company has progressed both Duncan to having a license and Satipharm gelpel to phase 2 clinical trials... how is a vertically integrated company with such solid products and resources worth only $40M?
- Thus once TSR is trading and they go from being a $40M market capitalisation to potentially $80-90M, MMJ could be worth $62.1M (69%) or 36c/share...
- As TSR progresses with Lucky Lake and Satipharm and locks in more deals this will only continue the rise in SP for MMJ.
This is why I respect Management for going for this route rather than a CR. In the long term, we'll be much better off.
Cheers
MMJ Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
