IHL or IRX?

IHL or IRX?

It has been interesting to read posters thoughts on the similarities between IHL & IRX.

In my view, both are highly promising but different companies that will not compete. Considering their ownership structure, they will likely do business with one another if an opportunity presents.

As was rightly pointed out by @Paulfool, IHL also have an additional magic mushroom component.

I expect both companies to shoot upwards together when rotation finally returns to medical cannabis, and at other times one will outperform the other depending on news flow, as is the case now.

Currently, IHL is white hot and early investors in particular are being handsomely rewarded for their research, convictions and bravery when the stock was once unpopular. It lifted off around a year ago and its upward trajectory continues to rocket into the blue sky.

If we compare both companies as investments, is it time to sell IRX here and load up on IHL? I would consider buying IHL, but it would be amateurish to sell IRX here without looking at the bigger picture.

IRX’s name, business model and share registry have been transformed completely.

A much more appropriate comparison is IRX is now where IHL was around a year or so ago before the trial news began to flow. Major players, including some giant names within the industry, are onboard and set.

This is a way of the world set up prior to lift off.

Cannvalate is obviously the launching pad behind both companies, as evidenced by the change of fortunes of both stocks after their entry.

Interestingly, Cannvalate’s initial investment in both companies is eerily similar; close to 1 million apiece.

Cannvalate have continued to add IRX at much higher prices (plus opportunity cost) and now own 19.9% of the company. Likewise, Dr Sud has personally continued to invest in IHL at much higher prices & a far heavier investment.

It is clear Dr Sud has a strong personal motivation for IHL to succeed, but what of Cannvalate’s other shareholders? Also, where does that leave IRX's substantial holders Vijay Sappani (TerrAscend/USD$1 billion market capital) & Mid Wealth (most likely doctors), as well as other big name industry holders who followed Cannvalate in?

The register of Cannvalate is a mystery although it is likely also mostly doctors (the network) and under Corporations Act it is limited to 50 holders excluding Dr Sud and Darryl Davies, which is quite limiting for a high powered company.

Cannvalate’s Ownership:

IHL    
Shares held: 32,000,000
% Ownership: 2.97%
SOI: 1.2 billion

IRX
Shares held: 33,524,924
% Ownership: 19.9%
SOI: 160 million

Both companies are cashed up and have high quality and tight registers; however an important point of difference is IRX has much lower shares on issue and very little liquidity.

IRX will unlikely ever be as big (market capital) as IHL, but the laws of physics suggest IRX's share price will fly high when the news flow is finally lit. It's possible IRX may even catch IHL's share price.

IRX $1 = 160 million market capital
IHL $1 = 1.2 billion market capital

On balance, it is well worth owning both companies before the institutions & funds enter.

Imo