THE ONLY REASONS YOU SHOULD BUY THCX THCx is probably one of the most undervalued large market cap stocks... FIRE was similar but it has caught up quite a bit over the past.
-less than 3 or 4 players licensed in quebec to produce, less than 2 if not only 1 (THCX) that is licensed to sell currently , comparatively ontario has over 60+
-Quebec has the second largest population after Ontario in canada, and many quebecors will assure you they smoke a lot of weed in the cottage country
-quebec protectionist sentiment will favor quebec businesses before outsiders, very evident if you survey the busines landscape. Jean coutu instead of shoppers, quebec classics cigarettes instead of canadian classic, etc. It is quite evident when you do some digging
-LOWEST COST PRODUCER IN THE COUNTRY RIGHT NOW,
-300,000 SQ FT facility done by mid 2018, 1M sq ft facility done by year end and everything is FULLY FINANCED
-108,000KG planned production capacity by end of 2018,
-THEY WILL BE IN THE SUB 70 80 cents production per gram space when economies of scale kick in. THat keeps them competitive from potential future imports from israel etc. where prices are around 50C per gram
-sublingual mist spray won at the cannabis awards for most innovative product
-CHEAPEST HYDRO AND WATER IN THE COUNTRY, straight up competitive advantage
-Quebec has lots of subsidies for businesses
-Excellent management team experienced with raising capital and international business (CEO has worked at both Export Dev Canada and Business Dev Canada )
now, why isn't it growing as fast?
-Exposure, some think the name isn't "idiot proof" enough or searchable
-French companies don't get as much exposure as Ontario companies so not as much pump
-Market cap is about 400-500 M atm, with the warrants converted it will be closer to 600-700 M , warrant conversion is happening now, so some sell-off is expected
-Revenue statistics are pretty good, and have grown year of year (if you're interested you can do some of your own research here on that)
THE QUEBEC SUPPLY DEAL WILL make this stock pop...so at least keep this stock on your radar. Saying a stock is expensive is like saying a belt for 1000 or a watch for 15k is expensive. This is all relative to what you are purchasing. a 15k rolex is not expensive compared with a 150k + audemar, and the same rolex is damn expensive compared with a 300 dollar citizen or sieko watch. The point is, market cap and revenues only get you so far... GEO and POLITICAL environment are important, core competencies are important. This company actually has a very coveted license that has made large players like aurora and weed enter the same sector, so it does not deserve to be compared with a low market cap producer that is only issuing "intentions" of producing large quantities. Just cause citizen watches say they make watches of the best quality, doesn't mean its worth the same as a rolex. PUT THCX ON YOUR WATCHLIST