FUNDAMENTALLY SOUND DEALLook im not really into the squabbling about managements passed career choices or all of the back and forth on whether they supported rec in the past or not.
I am an investor and like many of you my MO is to see a return on my capital investment.
I think all things considered, the cash balance this company has, the management team (love em or hate em are all decorated individuals who wouldnt have signed their name to a company if they didnt believe it was successful) We arent talking about Joe Scmoe here, we are talking about Individuals that rose to the absolute pinnacle of where their career could take them. One of them wserved on the Liberal Task force to legalize marijuana (Raf Souccar) And Julian, (love him or hate him) actually was the first to initiate coverage of medical marijuana for our Vets while he was minister of Veterans Affairs. So they have played a role in furthuring the cause (Raf with recreational) and Julian with medical cannabis. Though the media just focuses on the fact they were cops and had to uphold the laws at the time and gloss over the actual good they have done.
Mark J Sandler just jumped aboard and he is one of the most respected lawyers and regulatory experts in his field as well and he tied his impeccable reputation to this outfit. That should mean alot to someone as anyone who knows anything about sandler knows how professional and highly regarded he is.
Lucas Escott founded Mettrum, which later got sold for almost half a billion and is now a big part of Canopy Growth ( the 5 Billion dollar unicorn cannabis giant). Lucas probably received over 2 million shares in the mettrum deal ( the stock is trading just under 30 dollars per share from a high of $44. So do the math on how comfortable he is sitting now. He didnt NEED to work with this company. He CHOSE to! Im sure he had alot of other options so why did he end up here?
On top of it they pulled off a 30 million dollar plus financing during the market downturn. Not an easy feat. Plus cannabo had a nice cash balance so these guys have well over 30 million in the bank and are fully funded to build out one hell of a first phase of grow without having to worry about running into financial difficulties or needed financing any time soon. This expansion will bring them revenues (80+ MM a year maybe) and with their patient base (over 40,00 seen, 25,000+ active they should have no problem finding home for it all, at high margin because its seed to patient integration. They also have real clinic revenue already.
They are also doing good work on the Opioid front with a patient study on the way and an opiate specific replacement program. They have gotten alot of media coverage for this and their chief medical director (Dr Michael Verbora) who is a highly respected cannabinoid expert has actually went toe to toe with the corrupt CMA (Canadian Medical Association) who doesnt believe cannabis should really be a medicine . When i Say toe to toe they really went at it at a conference recently and it unfolded in a twitter war . Doc Verbora and Aleafia are standing up for the medical cannabis community against the corrupt archaic state of affairs.
Everyones entitled to their personal opinions and Im not saying anyone is obligated to like certain people associated with aleafia. But these are facts and are hard to dispute.This company has alot going for it. If you like the deal, great you see what alot of us see as far as potential.
If you dislike the management team and their past, youre completely entitiled to feel however you want to. But arguing over it and name calling and back and forth is just silly guys. Lets try and be a little more positive and respectful to one another. Were here to make money, and im Aleafia Long+++
Here is a short DD overview of the company and what it has going. Maybe this can help explain it better for those that dont understand.
Who we are?
- 22 nationwide cannabis medical clinics and growing
- Registered patients exceeding 40,000
- Country's largest network of referral-only medical cannabis clinics (CMC)
- Largest database in Canada for patients on medical cannabis
- Vertical integration through seed to patient model
- Currently operate a 7,000 square foot indoor hydroponic facility
- Expansion plan by end of 2018: 150,000 square foot (fully funded)
Why now?
- We Multiple revenue streams from: Patients, Medical Cannabis, research, and big data monetization.
- We will be a desirable partner to the organizations and institutions conducting research into the effects and benefits of medical cannabis across a wide range of chronic illnesses.
- Strong management team: Decades of experience in law enforcement
- already have strategic locations with fully licensed and educated physicians coast to coast.
- Capacity to expand production up to 1.2 million square foot facility.