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Global Hemp Group Inc C.GHG

Alternate Symbol(s):  GBHPF

Global Hemp Group Inc. is a Canada-based company. The Company is focused on two business segments: Industrial Hemp and Health & Wellness (Biopharma). The Industrial Hemp segment primary focus lies in the environmental uses of hemp for construction and hemp for sustainable bio-energy sources, both contributing to a carbon-negative footprint. It is also focused on aligning with its hemp agro-industrial zone (HAIZ) strategy to achieve a carbon-negative footprint. Its principal feature of the HAIZ concept is the proximity of the industrial plant to the supply of raw materials and final markets. The Health and Wellness segment is focused on the acquisition of exclusive licensing of patents and intellectual property (IP). It acquired exclusive rights to key patents and IP of Apollon Formularies plc., a UK-based international pharmaceutical company whose formulations and patents specialize in developing cancer treatments from natural biologics, including cannabinoids and functional mushrooms.


CSE:GHG - Post by User

Bullboard Posts
Comment by hempsteron Oct 06, 2018 10:29am
173 Views
Post# 28757146

RE:RE:RE:RE:Farm bill

RE:RE:RE:RE:Farm billEven though we still havent seen any revenues, there are some other numbers the company has given us which may help to valuate GHG.
One NR regarding the Oregon project gave us some pretty valuable information: they valued their shares in the escrow pool for this project at .36, which equals a market cap of around C$75million / US$58mio. Now to recieve these shares and warrants certain goals have to be met, and to rechieve 100% of the escrow pool the Oregon project needs to reach an EBITDA of US$2mio within one year, which I think is a very reachable goal when taking in account that they will have at least two harvests and that their acreage may also increase already pretty soon.
When we now guess that the NB project may produce a similar revenue/EBITDA, this would give us a total EBITDA of around $4mio for these projects and and a market cap of less than $60mio, or 30 times earnings, since 50% of these projects, and therefore of the earnings, belong to MCOA.
Trading at 30 times the earnings in such a hyped sector is a pretty conservative estimate, there are lots of companies which have much higher Price/EBITDA ratios so I think GHG's share price will also be significantly higher then. If GHG should trade at the similar ratios to Canopy, Tilray and other prominent cannabis companies, GHG could reach a valuation of several $100million and a share price of $1+ or maybe even several $.
Ofc this estimate is based on lots of whens and ifs and shouldn't be taken too seriously, there are just so many other factors which have an influence on the share price - there is just one thing which becomes pretty obvious when looking at this estimate, and that is that GHG is still a very cheap stock at the moment, with lots of potential.


Bullboard Posts