New rules good for AgraHealth Canada was drowning in a sea of bureaucracy and backlog.
They needed an intervention.
It came.
New applicants will find the new rules cost prohibitive, protracted and onerous.
Companies in the queue that are well managed and well capitalized should now move along faster.
Agra already has experience given their AAA license in London and this should help immensely as they proceed to finalization of the Delta license.
Shorters took advantage of the new rules and Agra was one of many targets.
Stop losses also kicked in as selling begets selling.
This stock is way oversold and I expect to see a rebound back to 50 cents next week.
Bear in mind, the only thing keeping this stock back from a billion dollar market cap is the license...they have everything else.
Agra's estimated 2020 cannabis production is comparable to the majors that trade @ multiples of Agra.
Upon licensing, Agra can move up 4-5 times.
Can Canopy enjoy this kind of move?
How about Tilray or Aurora or Aphria?
In its statement, Health Canada said more than 70 per cent of applicants who successfully passed their initial paper-based application review over the past three years have not yet demonstrated that they’ve built a facility that meets regulatory requirements.
That’s created a backlog that officials argue has unfairly left better-prepared businesses waiting.
“A significant amount of resources are being used to review applications from entities that are not ready to begin operations, contributing to wait times for more mature applications and an inefficient allocation of resources,” the statement reads.