I don't think it is a case of who will win out of these two. You're not comparing apples with apples! For instance Can group has about 80 million just in cash. It is actually producing more revenue from interest than sales. Hence it's share price is so high. The company has 37 000 m2 facility planned remember mxc is (with malta) around 9000m2. The cost of that facility is aprrox 100 million. But they will have four time the capacity of mxc. Can is a big company already, has huge capacity for growth. MXC is a minnow in comparison. You invest in Can because the risk is less, you invest in mxc for higher risk (re VC) but the returns on an investment could be much greater.
This isn't a negative however. You have to acknowledge what mgc have been able to achieve. Without this backing of Aurora they have a product in the Australian market already! They have a solid footprint in Europe.
Ironically they are linked in with Aurora as well. Aurora won a license in Malta. Could you get any better affirmation for MSC strategy? Aurora have a link with Winters having recently signed a deal with the cosmetics side.
MXC needs to be focussed on what they are doing and making the business profitable as soon as possible. Don't worry about other companies, they will come knocking soon enough.
A just wanted to put a note on the Australian Licenses. When I first invested in MM companies I thought it was the holy grail to get Australian Licenses. As time goes on I am seeing them as less value. Once the government allowed the import/export of products it sort of lessened their value. What's the difference between a GMP certified license in Europe and one in Australia? Perhaps reduced costs in transport? Climate? It is becoming a bit irrelevant. Can having access to Aurora Canadian product is far more impressive to me than an Aus license.
MXC Price at posting:
6.7¢ Sentiment: Buy Disclosure: Held
