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RE:Up to 85,000,000 $ Value in current supply agreements 15mths
In this podcast he says a significant part of this $35 million contract was paid upfront.
https://player.fm/series/otcqb-podcast/medipharm-labs-corporation
Read more at https://stockhouse.com/companies/bullboard?symbol=v.labs&postid=29514992#VlAy45j3BtjOkW3A.99
Great video today about 2019 what to expect
What ya think of today? People Taking some profits, some stop losses tripped? About due for some news from Labs don’t you think
Feeling good about this here
TORONTO -- Cannabis industry players welcomed the change in the Federal Budget to tax edibles, extracts, oils and concentrates based on the amount of tetrahydrocannabinol rather than weight, as it could ease pricing for some products and potentially boost product availability.
Grabbed a few at the low just because we will be out of this range forever soon
It’s best and will make the stock more profitable in the long run..bigger company. I’ll hold thru the weak hands tomorrow.. not selling any
Stock is halted
Solo news from Bmo investorline
TSXV's Solo Growth Edges Up In Heavy Trade As It Readies Alberta Retail Cannabis Network
18 Mar 2019 09:46 ET
09:46 AM EDT, 03/18/2019 (MT Newswires) -- Solo Growth (SOLO.V) edged up in heavy trading after the companyon Monday said Alberta regulators completed inspections on two of its cannabis retail stores in the province, even as it waits for the province to again approve new retail openings.
The company said the Alberta Gaming, Liquor & Cannabis Commission said the two stores in the Edmonton region are fully built and ready to open, adding to three others already awaiting supplies from the commission, which last year suspended new retail openings to combat a lack of cannabis supply.
"Since the announcement of the temporary AGLC licensing suspension, the company has slowed construction and will continue to execute on the organic component of its growth strategy which is focused on carefully managing financial commitments, high grading locations, prioritizing construction resources and pursuing cost optimization," it said in a release.
Solo shares were last seen up $0.005 to $0.007 on the TSX Venture Exchange, on volume of 1.65 million, making it the most active issue on the exchange.
Read more at https://stockhouse.com/companies/bullboard?symbol=v.solo&postid=29505349#RXVazLDiE5IEk8LS.99
Thanks! Very interesting and informative for sure
Hey Dougivee, I emailed investor relations. Had a few questions. I will update here when I hear back. Got anything? QCC has been quiet
Locations awaiting for license = Llyodminster, Vermilion, and Vegreville
Locations awaiting to be inspected and be licensed = Edmonton, Calgary, Spruce Grove, and Stony Plain
Could only hope, lol. I’m heavy and long here so time will tell if my DD pays off. Thanks for the encouragement. Hope you stay for the long ride
RE:VGW top pick
https://www.bnnbloomberg.ca/market-call
VGW top pick
Jaime Carassco of Cannacord Genuity included Valens as one his top picks on BNNBloomberg (Market Call) this morning. This is quite an endorsement for a guy whose background is in precious metals. He likes the extraction business within the MJ industry and sees tremendous upside for the services being provided.
No problem
RE:RE:RE:RE:AltaCorp rates VGW Outperform and increases target to $7 ...
I do not have a link to the report. It is proprietary research for AltaCorp clients / institutional desk. I have a PDF copy.
I tried taking a snap of page 1 but it didn't post. I'll try to use a copy text approach:
VGW | CSE
Market: $3.09
Rating: Outperform
One Year Target: $7.00
(Previously C$5.00)
Total Return: 126.5%
March 14, 2019
Financial Metrics (C$)
Shares O/S (mm): 93.2 Di l . Mkt. Cap ($mm): $374
FD Shares (mm): 121.0 Di l . Net Cash ($mm): $51
Price: $3.09 Ent. Value ($mm): $323
12-Month Target: $7.00 Impl ied Return: 126.5%
FYE Nov 30 2018A 2019E 2020E 2021E
Revenue ($mm) 0.1 43.5 118.7 171.1
Growth (y/y) 27% 84,266% 173% 44%
Adj. Gros s Profi t ($mm) 0.0 36.8 92.1 121.6
Gros s Margin 39% 85% 78% 71%
Adj. EBITDA ($mm) (7.3) 20.5 68.6 89.5
Adj. EBITDA Margin - 47% 58% 52%
EV/ Adj. EBITDA - 15.8x 4.7x 3.6x
Q4/18A Q1/19E Q2/19E Q3/19E
Revenue ($mm) 0.0 2.4 6.3 12.9
Adj. Gros s Profi t ($mm) 0.0 2.2 5.7 11.0
Adj. EBITDA ($mm) (2.3) (1.0) 1.8 6.6
1x DCF 11.5%
David M. Kideckel, PhD, MBA
Analyst, Managing Director
647 776 8240
dkideckel@altacorpcapital.com
Kevin Hoang, CPA, CA
Associate
647 776 8220
khoang@altacorpcapital.com
Fiscal Year 2018 Results In Line with Estimates, Management Demonstrates Ability to Execute
Event: Valens reported their financial results for the year ended November 30, 2018. Overall we view the release as positive, as financial results were in line with our estimates
but most importantly, management has demonstrated their ability to successfully execute on their near-term business strategy, acquiring multiple high-profile tolling agreements during this quarter.
Highlights:
Financial Results: Valens reported results for the year ended November 30, 2018, with modest top-line figures that exclude extraction revenues, which are expected to come online in the next quarter. Adj, EBITDA came in at ($7.3mm) compared to our estimate of ($7.4mm) and EPS came in at ($0.22) compared to our estimate ($0.13). Given that derivative-type cannabis products will not become legal in Canada until late 2019, these results are in-line with our view of how the extraction market in Canada is evolving.
Newly Announced Tolling Agreements: During the F2018, Valens announced several new extraction service agreements and have now developed a healthy pipeline of tolling revenues from leading industry partners including: Canopy Growth Corporation (WEED-CA, NR), Tilray (TLRY-US, NR), The Green Organic Dutchman (TGOD-CA, NR), Organigram (OGI-CA, NR), Sundial (private), Speakeasy (EASY-CA, NR), Harvest One (HVT- CA, NR) and GTEC (GTEC-CA, NR).
Change in Estimates: To date, management has tracked to our financial and strategic
expectations. Based on management’s success with their contractual wins with significant players within the cannabis space as said above, we believe that management has significantly de-risked our financial estimates, which necessitates our reduced discount rate from 15% to 11.5%.
Maintain Outperform, raising our target price to $7.00: We maintain our Outperform rating and raise our 12-month price target from $5.00 to $7.00. Our target price is based on our discounted cash flow (DCF) valuation, using an 11.5% discount rate and 3% terminal growth rate.
Summary of Results
Financial Results
Valens reported results for the year ended November 30, 2018, with modest top-line figures that exclude extraction revenues, which are expected to come online in the next quarter.
Adj, EBITDA came in at ($7.3mm) compared to our estimate of ($7.4mm) and EPS came in at ($0.22) compared to our estimate ($0.13), which is largely due to share-based compensation coming in higher than expected and a one-time loss recorded by the Company relating to the promissory note receivable.
F2018 Results Summary
Figure 2. F2018 Results Summary
Source: Company reports, AltaCorp Capital Inc., FactSet
Strong Pipeline of Tolling Revenues Expected to Materialize in the Coming Quarters
Valens has acquired various extraction service agreements with multiple industry leaders and have now developed a healthy pipeline of tolling revenues with: Canopy Growth Corporation, Tilray, The Green Organic Dutchman, Organigram, Sundial, Speakeasy, Harvest One and GTEC.
Furthermore, the Company has signed multiple LOIs and are currently in discussions with
international companies to pursue potential opportunities abroad, Valens intends to focus on the Australian, Colombian and European markets in the near-term.
Valens Looks to Become a Leader in Hemp Extraction
Aside from cannabis extraction, Valens is also pursuing opportunities in hemp extraction and looks to become a leader in the space. Recently, the Company announced extraction agreements with TGOD, which is primarily hemp based, positioning Valens as a leading certified organic processor in the cannabis industry, utilizing certified organic extraction methods.
We note however, that we have not quantified the revenues from hemp extraction as incremental to our current estimates as we had previously assumed these agreements would be related to the extraction of cannabis. In our discussions with management, although the pricing of hemp differs from cannabis, Valens intends to price based on hemp throughput (which would be significantly higher than cannabis). Furthermore, the efficiency in hemp extraction is approximately 4x greater which would result in a net neutral impact to our current tolling revenue estimates.
Primary Goals for the 2019 Fiscal Year
For fiscal 2019 the company aims to focus on the following:
• Execute on existing extraction contracts with industry partners
• Secure additional extraction and product development contracts
• Receive EU GMP certification and enter the international marketplace
• Expand its offerings into the cannabis-infused beverage, edibles and concentrates markets
• Geographic facility and capacity expansion
We are extremely confident in Valens’ ability to achieve these goals based on what we have seen from the Company thus far. In our view, Valens will continue to execute on their diversified business strategy, allowing them to significantly ramp up the business to generate meaningful revenues in 2019.
Actual ACC Consensus
Sales ($Cmm) 0.1 0.1 0.1
Adj. EBITDA ($Cmm) (7.3) (7.4) (7.2)
EPS (C$) ($0.22) ($0.13) ($0.13)
F2018
Valens Labs Obtained ISO 17025 Accreditation
The ISO 17025 accreditation obtained by Valens Labs makes them the first Health Canada licensed laboratory using cannabis as its matrix in Canada to achieve this accreditation. In our view, this accreditation will become critical as the edibles market comes online later this year.
Given the rigorous standards we have already seen from Health Canada for cannabis, it is safe to assume that the standards for the edibles market will be similar if not even greater. This accreditation will give LPs certainty that they are producing and receiving high-quality and safe products, which will ultimately translated back to the consumer. We view this as critical in
building consumer loyalty and brands, especially since current Health Canada regulations are
extremely prohibitive insofar as the type of content companies can brand with on products.
Forecast and Outlook
Estimate Revisions
To date, management has tracked to our financial and strategic expectations. Based on management’s success with their contractual wins with significant players within the cannabis space including: Canopy Growth Corporation, Tilray, The Green Organic Dutchman, Organigram, Sundial, Speakeasy, Harvest One and GTEC, we believe that management has significantly de-risked our financial estimates, which necessitates our reduced discount rate from 15% to 11.5%.
Company Outlook
In our view, Valens successfully achieved its fiscal y/e objectives, and is well positioned to
achieve its F2019 ones. As our financial forecast at launch (link) included most of the
announced contracts and their contributions to estimates, we feel very confident with
manage ment’s ability to execute on its stated objectives moving forward. As a result, we arereducing our discount rate to 11.5% (from 15%) to reflect this. With the Canadian government expected to legalize derivate-type cannabis products (eg vape pens, edibles, beverages) in late 2019, we expect Valens to be ready on day 1. Their core expertise in extraction, coupled with their key partnerships with Thermo Fisher Scientific (TMO-US, NR) and US-based beverage company, Tarukino (private), position Valens to lead the way in extraction.
From an international outlook, Valens has stated that “geographic facility and capacity expansion” as well as “EU GMP certification to enter the international marketplace” are among their primary goals for 2019. Management has indicated to us that they toured a large number of CBD-based European facilities in early 2019 to assess a plethora of business opportunities. While not modelled in our forecast, we feel that should Valens enter the European market, this would offer much upside to our estimates.
Lastly, we believe that Valens’ ISO 17025 accreditation for cannabis testing should not be
underestimated. In particular, this accreditation will give LPs certainty that they are producing
and receiving high-quality and safe products. According to the Company, “this accreditation makes Valens Labs the first Health Canada licensed laboratory using cannabis as its matrix in Canada to achieve this accreditation.” We believe that as edibles come online in Canada in late 2019, consumers will receive this accreditation very well as the technical aspect of it allows for very high-quality product. We believe this play a key role in building consumer loyalty and brands.
Valens GroWorks Corp.
Calculation of our Target Price
We maintain our Outperform rating and raise our 12-month target price from $5.00 to $7.00. Our target price is based on our discounted cash flow (DCF) valuation, using an 11.5% discount rate and 3% terminal growth rate
Read more at https://stockhouse.com/companies/bullboard?symbol=c.vgw&postid=29488775#8WTtMpTKHoDobyR6.99
Getting copy uploaded from source so I can post. If he said it it’s credible. Check back for it
RE:RE:AltaCorp rates VGW Outperform and increases target to $7 ...
It was released either late yesterday or today. Altacorp has increased the buy rating from $5 ton$7. Legit. Hold on to those shares.
Right you are. Scary good
Yep, steady climb up till next earnings with catalysts a long the way. This was huge that everyone didn’t dump today . Excited for future here!!! My largest hold ever
Totally agree, nice to see strong hands here. No more cheap shares!!!
I have strong hunch that they will be approved and operational by May or June. Given that the suspension started in November and it takes 6 months to fully produce cannabis, and that the organizations that have already applied, SOLO, are soon to be approved. Other companies that have not submitted their applications will have to wait possibly a year or two, as the AGLC is no longer accepting applications. SOLO has submitted several applications already for nearly 60+ locations in Alberta alone.
No problem
Hey Alwaysbmikki, do you have a definitive date for earnings? Thanks
Read this complete article before shorting this stock
https://www.streetwisereports.com/article/2019/03/13/marijuana-up-in-smoke.html
Started here didn’t want to chase Choom, sharing IR email which made me buy in.
I am sharing an email I sent to IR, and the response I got back today. Perhaps this information will be useful to longs like myself . Easy money for patient people.
My Email:
Sent: March 9, 2019 8:52 AM
To: investor@sologrowth.ca
Subject: Update for investors
Good morning,
I am writing on behalf of all investors today. As I am aware that many of our concerns as investors are probably very well the same as yours, to wit:
1. Losing out on first out the gate advantage ( to other retailers, Choom, inner spirit , etc)
2. Watching the stock price drop and the overhead cost you have for empty store fronts?
3. The concern that it could be another 16 months or so ( based on media reports) before you are licensed and open.
In closing, I am wondering if you can address any of these issues above and/or provide more insight and direction as to any upcoming moves Solo may be heading. As an investor, I am heavily invested with you and any information would be helpful.
Thank you in advance!
Kind regards,
Today’s response:
Thank you for taking the time to email regarding Solo Growth. As you likely saw yesterday, the Company announced the implementation of several key corporate strategies aimed at enhancing long-term value for its shareholders. The release issued yesterday is available here: https://sologrowth.ca/wp-content/uploads/2019/03/19_03_12_-_Ops_and_Corporate_Update_FINAL.pdf, and the Company also updated its corporate presentation which is available here: https://sologrowth.ca/wp-content/uploads/2019/03/19-03-12-SGC-Presentation-March-FINAL-2.pdf.
With three stores now inspected by AGLC, the Company is prepared and excited to be able to open these stores immediately upon granting of an AGLC license, which remains at the discretion of AGLC subject to the prevailing supply constraints in Canada. In addition to its organic growth, Solo Growth has increased its focus on strategic opportunities within the cannabis sector that will drive shareholder value, including accretive strategic acquisitions, partnerships and/or other ventures. An additional four stores are expected to be ready for inspection in the coming weeks, and Solo Growth will continue to provide updates on these inspections as information is available.
In terms of cost control, Solo Growth has successfully assembled a strong administrative team, and therefore no longer requires the back-office functions that were previously provided by the Solo Liquor Administrative Services Agreement, which provided for accounting, payroll, IT and back office administrative services. The termination of the agreement, along with the head office relocation to alternate space, is another key step to keeping overhead costs low - resulting in an annual estimated savings of $200,000. Solo Growth is committed to maintaining a healthy financial position, while also ensuring the Company is prepared to open locations as soon as AGLC licenses are granted, and pursue a broader strategy that includes both organic growth along with potential M&A or other transactions. Ultimately, the Company is driving to generate value for shareholders, and believes the pivot announced yesterday is optimal given the ongoing regulatory uncertainty and supply constraints facing the industry.
In the interim, hopefully this helps provide colour, but if you have additional questions, please don't hesitate to let us know.
Thanks again,
Cindy Gray, MBA
5 Quarters Investor Relations, Inc.
403.231.4372 Office
403.828.0146 Cell
cgray@5qir.com | www.5qir.com
Hey Dougivee, no matter this is undervalued right now and I feel they will announce something positive soon. They will execute on the extraction front this year. No brainer