MTL Cannabis Corp C.MTLC

RE:RE:RE:RE:RE:Farm gate retail stores for LPs

[SenorLegume]

Kind of confusing, glad you pointed that out. We need to see an announcement of Canada House doing the same thing as Indiva via their Abba Medix store. Could happen at anytime along with the Edmonton Retail Store details that Boom Capital said is in the works. We have a few significant events in the near term. 

One part of stock prices staying at the same level that investors should understand, the company has still gone up in price as determined by market cap. During the investment and pre-license stage the dilutive efffect of investment swallowed up a lot of the potential stock price gains. 

The clinics quarterly gains in revenue and maturity of that business, allows that investment to begin to pay in terms of cash flow and lower cash burn/dilution. Just because Canada House posted a loss for the last fiscal year, does not mean the clinics bottom line is not improving. The loss for the fiscal year 2018 dropped from the fiscal year 2017. The loss per share is down dramatically in fact to 9 cents a share from 25 cents. 



These losses include all businesses held within the Canada House group, like pre-revenue Abba Medix LP, and Knalysis, and efforts and expense made on Retail application and Medicine Man deal. The clinics alone tell a different cash flow story because they are generating most of the revenue, and have lowered investment costs at this point. Expansion of the clinics might require addtional investment and change this dynamic. 

Part of the losses are attributed to non cash reasons too. Figures shown below are from last fiscal quarter where losses increased YoY on the same fiscal quarter, in isolation from the rest of the year. 



Safe to conclude that the clinics improved revenues and decreased capex requirement allow for more profitable earnings going forward. Revenues are actually higher than those of Alefia's last quarterlies. 



With revenues soon to begin from Abba Medix and Retail stores and also the Micro Grower sales market, the revenues will begin to shape up. Dilution has been severe but one has to consider CHV as a conglomerate with several businesses expanding at the same time. It figures they would need more capital to build out more businesss. The same should hold true when it comes to revenues and eventual profits. The forward looking EPS still looks decent.