How we value CAU

Very interesting stock, before we talk about true value, we need take a closer look at the valuation of similar companies in ASX. Our company's analysts have a deep look in the financial data of several pot companies in ASX. We tend to use net asset valuation method to value this kind company.We balanced the situation,give probably the Market value/Net asset = 1.5. According to the number given in the prospectus, the valuation of the company IPO should be around 21M, also the whole industry stock price going down very fast, and the management burns a lot of cash at the wage and also other non-business level, we expect to have a 20% discount, that is 17M valuation, target stock price around $0.13. According to the prospectus, the company's main business is to sell products, the funny thing is the whole Australian market is less than $20M, no imagination for future. The real value of pot companies in Australia is Assets, not revenue, most products are sold in America and Canada. If the management does not change the strategy at the right time, the company's valuation is basically cash.
On the other hand, Australia has a relaxed legal environment, huge cheap land, is one of the best countries for raw material growing. How Cronos US use this shell company? Let us wait and see.