IHL (ASX) IHL Chart Technicals

Originally posted by Exalted ↑

Of course Impression is very cheap, and the cheapest valuation outright in the ASX MedCann sphere.
However, I'd be reserved in comparing to AGH as of yet, despite similarities in the space and both partnering with Cannvalate.
AGH does not produce cash iirc and we are, despite making losses we are improving with every quarter.
However last I checked AGH had $18M in cash, which undoubtedly is a big part of why they are able to be valued as high as they are without concerns of running low until years to come.
That being said, these trials are going to be insane if all successful and Impression discloses predictions as to their potential value in $$$, I wouldn't be surprised to see us shooting right up into maybe even overvalued territory.
Quarterly comes out this month correct? Will be interested to see how the dental side is doing as of Q2.

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Re AGH's $18mn, they are not producing cashflow atm so this will diminish over time.

IHL is producing cashflow rising from quarter to quarter and then you have to consider the options.

Cannvalate has 120mn unquoted options with prices ranging from 2c to 14c, interestingly enough the larger chunks of options are on offer at the higher values. The Cannvalate options expire between end of this calendar year and end of 2020. If all are exercised alongside the rising SP then they will generate $10mn im cash for IHL.

In addition we have the quoted options being 256mn at 0.04 also expiring late next next year. If fully exercised then these will bring in another $10mn in cash.

So that's north of $20mn in cash just waiting to be claimed.

Sure that is some heavy dilution, but, by then Cannvalate will be a major shareholder and the supply business should be firing on all cylinders with IHL sitting on $20mn in cash.

Even with the option exercise dilution a mkt cap of $200mn would be be worth around 21.5c a share and that would only put us equal with where AGH is now, IHL, under this scenario, would be miles ahead of AGH so would deserve an even higher mkt cap than $200mn imo.

All of which explains why the OBs are my biggest portfolio position these days.

EB