Khiron Life Sciences Corp V.KHRN.H

RE:RE:RE:RE:Let's hire a PR company to help get this moving

[Benedictus]

Exactly Handy.

My take: The company is an early mover in the B2C medicinal cannabis market. It's going to take patience. They are not operating in the free for all wild Wild West massive US market. Khiron is pursuing the less sexy medicinal side of this business where regulatory frameworks, bureaucratic hurdles and systemic resistance to the benefits of medicinal cannabis as a valid substitute to old school pharma approaches are all acting as a heavy drag on market entry and start up, speed of growth, script issuance and revenue build. Brazil, Germany and the UK are all definitely in this category. Columbia and Peru are growing nicely but revenue per patient is far lower than developed countries and so far the customer base is still small, so it is going to take time to have a meaningful impact on revenues and the sizable cash burn. When the stock traded at $4 it was valued near $500M market cap. If a mania retakes the sector based on US decriminalization and Mexico legalization it's possible this stock revisits such crazy valuations trading on thin air but to trade at such a market cap on real fundamentals is going to take a huge amount of proof of concept and for now there are way too many blanks to fill in on market penetration and growth trajectory, competitive advantages, etc. all imo.