GREY:ISCNF - Post by User
Post by
Bobowskion Dec 16, 2019 4:18pm
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Post# 30460730
Isracann
IsracannI would like to address a couple of concerns I saw in this post chain. First, I doubt the short sellers are insiders as the short sellers have been attacking the cannabis sector for about the past nine months so this is nothing new. Second, this is not a pump and dump (at least not in the traditional sense of the term) as there is more to be gained down the road (more on this below).The insiders are not going to be selling for 35 or 51 cents or even a buck when there is much more to be gained later on. Of course Isracann have nothing now as they have not even started construction yet, but they will be in production by the end of 2020. The Israel cannabis sector is where Canada was about two years ago. That being said, there is likely to be pricing pressure when the 51 cent financing hold period ends on January 31, 2020, as more short sellers show up (as they always do) when a hold period is coming to an end. So what is the big play that will produce these larger gains in 12 to 18 months? It is a buy out by a large Licensed Producer (probably a Canadian LP like Canopy or Aurora). They would not only love to get their hands on a low cost (40 cents a gram) producer in the middle of an under served market like Israel, but also because of the close proximity to Europe (the largest cannabis market in the world). Israel is only the third country in the world that is allowed to export cannabis to Europe (the other two being Canada and the Netherlands). So how much could the windfall be? Well...at a production capacity of 23,500 kilograms (23,500,000 grams) at $5 per gram (wholesale) is about $115 million, times (a buy out price of 4 times revenue) divided by 155 million shares outstanding (fully diluted) is about $3 a share, not to mention Isracann (or the new owner) can expand their facility to 580,000 square feet which would be an added kicker to the buy out price. This could be a 10 bagger. I am not an insider nor do I work for Isracann. I am just an ordinary investor like most of you.