Cannex Capital Holdings Inc. - Ordinary Shares C.CNNX

RE:RE:RE:Financals are out on sedar !

[Chris2982]

after a little more looking it seems like that is the case. cannex leases out the buildings that are used to grow the cannabis but they dont actually own or sell the product themselves. in addition to the leases they also sell packaging, ip, and consulting services to NWCS and 7point. my estimate for next years income in washington is approx $10-11 million USD which is around 14 mil CAD so the price/next years revenue is around 12x which seems pretty in line with other US weed companies. i would say that the stock price right now is pretty reasonable if you considered cannex to only operate in washington but once the jetty deal closes that should give them a solid boost. if i remember right the ceo said jetty was being bought for 2x sales so considering that cannex trades at 12x next years revenue that should be a good catalyst for the stock even after accounting for dilution when the jetty shares are issued. If they can also follow through on their plan to be in 2 more states by the end of the year then i would say that cannex shoud do just fine in the next 12 months.

one potential issue though is with the washington market. weed prices have been dropping there and they said that NWCS and 7point have occasionally had trouble meeting their lease payments so if that continues to get worse then there may be some revenue missing over the next year. its a temporary problem as the weed market there deals with an oversupply which will eventually get sorted out.