Bit concerning that there's just under 3 quarters of funding remaining. The marketing cost is excessive (CPH have a footprint on so many online stock news providers, paid ads everywhere you look), but at this early stage of the journey, I can see why aggressive marketing is necessary.
The smashing revenue generator last quarter was Mernova, but it's been fairly quiet in April with sales. Bit of a worry looking at the next 4C quarterly results unless things pick up. I'd really like to see more sales in LATAM, Europe, South Africa take off for the anibidiol products, other new products in the CPH range. Mernova can't be doing all of the heavy lifting with Canadian sales.
The $18m injection of sophisticated funding will definitely go a long way too. To dual list on the US OTCQX is a very costly exercise and this attributes to the increased operational expenditure this quarter.
"The Company expects the OTC listing to unlock considerable value for existing shareholders by allowing easier comparisons to US and Canadian listed peers operating in the cannabis and psychedelic medicine sectors."
This will be well worth it, much to look forward to in the coming weeks with the US listing imminent.
Still need a lot more agreements and sales to convert in order to justify the current market cap, but overall a great quarter to cap off the first era in global legalisation.
CPH Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
