MJ Investor Sitting TightHi guys, i have been investing in the MJ industry for a few years. I am really excited to have jumped in here in what I beleve is a great risk reward opportunity.
Potential Reward of This Deal
If this facility gets licenced as a grower, that is when we would see a major pop. Companies with this kind of production space (~500,000sqft), licenced to grow but not sell are currently valued at about 200-250 million, with 200 day moving day averages closer to $280million.
This play would be very similar to a company called Supreme Pharmaseuticals (CVE:FIRE) Market Cap 248 million. We would own rights to products of around 500,000 sqft. Slightly more than Supreme. We would also not be required to deal with any of the marketing to bring this product to our consumer, that would lie on EMH. Important to note, SL only has cultivation licence to receive that valuation
By the time of licencing for sales, likely 2019. We would be similar size to companies currently listed such as Canopy Growth (TSE:WEED), Aurora Cannabis (CVE:TSE) and MedReleaf (TSE:LEAF) These companies are valued more in the 700 Million to 1.1 Billion range.
Our realtionship with Loblaws, the owner of outspoken wannabe distributor Shoppers Drug Mart. Is a huge asset, this connection could lead to a huge distribution channel. Our location is perfect. BC has been a leading province in the push for legal rec cannabis, when it does become federally legal, it will tehn be up to the provinces to determine their own timelines for legalisation. BC has some of the most overwhelming support and is likely to be the first province to allow legal cannabis sales.
The existing facility, puts our facility on similar timeline to many major MJ companies expansion stategies, so we are not way behind. However no MJ company has access to the potential growth that we do, with preexisting facilities. The ability to use our facilities to 4 million sqft of MJ production space, give us the largest potential, if the rec market does take off.
Just wanted to give you guys some perspective from the other side of the fence. This could be something big. And worst case senario we focus on growing in three of our facilies for a few year and collect rent on the fourth. Thats not to shabby either.
I'm gonna be around for a while on this one! 85 mill market cap in the MJ space fpr potential this large has possible 10 x yields within 3 years, I don't see that poential as priced into this stock yet.
Hope to chat soon! would love to hear more details about the actual food growing side of this company, other than having looked at the numbers I can't say I know a whole lot.