Cannabis stocks are heating up again.. $TLRY had a +7.36% day, $SNDL +10.66%, $ACB +4.75%, and $CGC +32.09% (at close).
Another great cannabis company people should keep their eye on is $CPMD. Below is a summary of everything they discussed on an investor update call on 3/19/24, link to recording: cannapharmarx.com/news-releases/…
- Dean Medwid appointed CEO on June 1, 2023.
-55,000 sq ft facility in Alberta, Canada licensed by Health Canada and CRA in January, 2023.
-10 grow rooms, each 2,200 sq ft.
-Each room harvested every 2-3 weeks, or 6,000KG per annum.
-All inventory grown is expected to be pre-sold
-Facility has the ability to generate $18M per year, they are forecasting $10M this year (delays in exporting to customer in Israel and unforeseen site maintenance issues).
-Signed contracts with customers: Cantek (Israel), Cantourage (Germany, recent news about approving cannabis has been positively impacting the market), ICAN (LATAM, focus on Panama), and pursuing clients in Australia and UK in the near term.
-Added two members to the Board of Directors; Anthony Panek and Adam Mindle.
-Added new CFO Oliver Foeste
-Goal to achieve $60M annual revenue by 2028 (Their current site capacity is $18M per year. Naturally, this means more facilities or acquisition.
-Industry forecasted to grow 30% CAGR by 2030. 44B -> 445B.
-CannaPharmaRX competitive advantage is the ability to grow product at a lower cost per gram while maintaining high quality.
-Primary focus is on the 3 P's.. people, product, and processes.
-Secondary focus is ESG. Currently have solar at their facility, also implementing thermal heading and LED lights to reduce costs and increase product yield.
-15c2-11 filing expected in coming weeks
-10K audited financials expected in coming weeks (they recently announced their first PO: cannapharmarx.com/news-releases/…) So treat 2023 financials with a grain of salt, likely only going to show obligations.
-Secured alternate financing to 'all but remove' highly dilutional debt they've experienced in the past.
-Once above 3 bullets are complete, expectation is to trade at a fair value relative to peers in the industry.
-Expecting to run a profitable business this year
Pros:
-Small entry, current price is 0.018.
-Company just starting to gain momentum with their first few customers
-New CEO, CFO, and board members with industry experience and backgrounds that will be useful in the companies progression.
-Market cap is currently $5.9M and they are projecting $10M revenue this year. $60M annually by 2028 is the goal. Simple math suggests the stock should trade at least 2x its current price later this year.
-Germany legalizing cannabis has had a positive impact on all cannabis companies recently.
-Safer Banking Act giving cannabis companies more access to financing.
-Industry expected go grow 10x by 2030.
Cons:
-This company has been around for a few years now, what took them so long to get up and running?
-Downward pressure, stock once traded at $2-$3 range in 2020 (Other cannabis companies traded at $100-$1000 around the same time).
-Unforeseen political landscape
-Falling short of above forecasts would diminish retail sentiment, because of how long they've been idle in the game.
-Crowded industry
