Were we lied to by AusCann management? I read the latest Dec quarterly activities report. I am not impressed.
- I can infer that PCI Pharma will design the hard capsule and production method. AusCann probably does not have anything "proprietary" by the look of it. All it has is probably a colour drawing of it
It was all marketing and no substance.
- "AusCann on track for the production of cannabinoid medicines for use in clinicaltrials during this calendar year". This is a clear confirmation of what I had been talking about. They don't have anything for trial! They don't have the blue print for manufacturing to be used in a lab to produce limited number of capsules for trials. They are waiting for PCI Pharma to design and manufacture the capsules for trials. This is why there has been no announcement on arrangements for trials because there has been no product for trial.
If (and ever), PCI Pharma completes the design and then moves on to production of a limited amounts for trials within this year, should the arrangements for trials with reputable organisations (medical) should start now? Things must be organised in parallel rather than sequential like this. By the look of this snail pace, the trials may happen next year and we are looking at a marketable product (if ever) 2.5 years down the track.
They will blow over 11 millions on the R&D facility in WA. They will burn cash on current staff and DayaCann venture. What will happen in 2.5 years? Would they burn all of the 41 millions in cash and require another round of capital raising? If this happens, it won't be at $1.10. It would probably at 25c.
One bird in the hand is worth twice in the bush! Now that they have nothing to trial in the foreseeable future, I don't know how to think about this company. That calls into question why the CEO resigned last year with the excuse of finding a candidate who is more into sales and marketing, sales and marketing of what?
Now, I start to feel that the low of 46c will be tested sooner than later.
