RE:First@ Starkicker/ QC
CEO wasn't complaining or whining about the stock being undervalued, he's saying the stock is undervalued because it is. Don’t forget that the majority of his options have an exercise price of $0.145/ share, and with the amount of options he owns, he has the best incentive to improve the share price. BV/ share is ~$.12 + SP/ Revenue (@ 1.2x FY23 Rev) ~$0.09 + value of licenses (yes, the licenses are worth millions) and pharma approval potential.. The catalysts have been shared, focus on profitable revenue, continue to cut unnecessary costs & improve plant utilization, expanded product portfolio in Germany, Australia, & Brazil.
HOPEFULLY there is positive news before earnings and if not, we need specific updates during the call. There is no benefit for Medipharm not to disclose who their pharma partners are, other than not being allowed to disclose them due to NDA's. An announced pharma deal with one of Teva, Apotex, or Sanofi (or like size) would easily double or even triple the share price at current price. Share buybacks are not the answer and won’t drive long term shareholder value. You want to know what does? Continuing to execute on profitable - cost effective growth, and identifying accretive M&A - lots of mismanaged carcasses out there that will add to the top & bottom line and create more value than a buyback. Buybacks should be off the table until they are generating FCF, that being said I’m not opposed to them announcing an NCIB to have available if they see major growth mid quarter.
My expectations for Q2 are: CAD Rec ~$3M + CAD Med ~$3.5M + B2B/ Pharma ~$2M + Int'l Rev ~$4.8M = Q2 total of $13.3M @ 35% to 40% gross margins. I can also see international revenue hitting $10M, but not expecting it. If international rev doesn't increase at least 50% QoQ, then management owes an explanation. Absolute minimum revenue for this to be a successful quarter is $12M (barring HUGE pharma news). Guidance on Q3 & Q4 expectations would be amazing. Next 3 weeks will be painful while we wait. GLTA.