General discussion, page-335

Hi Callum, I'll give my opinion on your questions.

If all 4 trials are a success, that would give IHL Novel IP over 4 areas in multibillion dollar markets with no existing pharma therapy.
Sales can begin through SAS as is our strategy, and further trials would be conducted i.e Phase 2 if the initial was Phase 1 and Phase 3 if the initial was Phase 2.

For reference, BOT had 2 phase 1 trials be successful in Acne and BTX1801 for Superbug Killing and was capped at 200-250M MC at its peak.
Acne isnt even a novel area, there are existing pharma therapies for it already so even if BOT successfully commercializes then they will have to compete for market share. Yet the market considered them with 2 successful trials for IP to be valued that much.
How much would IHL be valued with 4 successful trials? I cant give you an answer but I'd use 200M as a minimum.

Possibility of this? For OSA, Dronabinol which is the main ingredient has already been tested in the US by RespireRX in a Phase 2 Trial successfully. IHL gained license from Respire iirc to use dronabinol in our OSA pill. For ARDS, hydroxychloroquine is to be used along with CBD. TBI is just CBD compounds iirc, and no news for TMJ so far. But all of these were chosen by the Med Board as areas to trial because of the large body of existing medical research that CBD works for them. All areas are very likely to succeed, OSA out of them IMO is almost guaranteed to work.

If just one is a success, depends when that one comes through. If its the first trial result successful and rest unsuccessful we will likely see a BOT scenario play out, where initial successful results re-rate us high but will get smashed on a failure. Inverse if the first trial fails and second succeeds.

From a shareholder POV, 3 main issues. First is cash balance, difficult to raise in this climate but lucky for us IHL has solid cash balance lasting at least another year, with $9M worth of Suds oppies still in play before end of this year if all goes to plan we will have positive quarters simply due to the amount of $$$ those oppies are worth. He has exercised all of his Cannvalate oppies so far up to 4c, the next set is 6c-14c exercise.

Second is management execution, so far they haven't failed in any major promise and have stunningly managed to get 1K patients from October to December last year. INCANNEX was formed in August 2019, Impression has transitioned from a mouthguard business in the space of a year to add a Medicinal Cannabis business, and our brand isnt even a year old yet. Management all very well credentialed, Sud the key here.
The premise of the company is in these 4 trials, and I'm sure most of us have invested for their potential. Oils business alone growth rate will inevitably see a re-rate from these levels, but we all know that it is successful trial results that will see valuation moon.

Third, management has large skin in the game. Sud top holder, all Directors top 20 holders with Non-Exec Former Heinz CEO Peter Widdows forking out $50K of his own money to participate in a raise last year. Sud has exercised $1M worth of his own money to convert his Cannvalate oppies. No lifestyle director issues, salary is not exorbitant.

So tldr, with cash no issue, management all skin in the game aligned with shareholders, last is whether you trust management to execute and their history. IMO so far it is good, remember Sud and Cannvalate have until December this year to get the SP over 14c to exercise their full package as they are paying almost all costs for the trials on behalf of IHL. Its a matter of delivering on their timelines, if they do deliver its incredibly good risk/reward and if you believe they won't then you might as well sell now.

IMO. Good luck.