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Best evaluation ever. Your right do you think we have a Sirius type stock with billions of shares out and a good price? Thanks for your posts.
Not with the fact we can produce at a high rate and also because we are adding hemp and research on both.
I do not see a merger but I do see working with a major drug company or hospital or research institute for research on hemp and mj. We could even see grants or funding like you see in other biotech companies. Stock I am shocked on these developments.
Because of the recent developments this stock will go much higher then I thought. Which was .13 to .15. However, if the dot.com craze takes effect or "were in at the ground floor" hard to speculate. I have seen biotech stocks that make no money prices in the several dollar range. Once again to hard to call.
Stock sorry I could not answer you but now that two great things have happened, the Benzinga article which substantiated my belief that Phot and Cann hurt this sector and the r&d grow, research center. Stock I am really in shock. Yes I have a vested interest in wanting this company to succeed, but based on the article and also the land purchase we are now the Premier MJ companies. No doubt in my mind. Now we just need good PR.
Always a chance I have seen stock go down on good news, but this is a penny and the news gives this company the essential element which is the ability to produce. Without that we are nothing but potential warehouse owners. But yes the waiting can be and is very upsetting at times.
Nothing wrong with that but until it does risks is always there. Quite understandable.
You are correct we will have substance not talk.
Who is going to lend their reputations to a company that has no potential when you worked for JP-Morgan. Believe me they smell money. These guys are not fools. No one works for the FBI, Sec and risks their reputation. The board members build credibility. Something this sector needs.
You are correct, but I must admit I fell like selling two days ago, I became discouraged. That is part of the game. We have the facility that is sate of the art, and were building more. With the license we become functional. Not just prospect.
No doubt you are correct, problem is waiting for people and getting discouraged. The more board members with name recognition we have the greater the credibility we have to potential shareholders. That is why second guessing the license already happened is not a good thing. Let the company roll out its news. Once, again License news is the whole bowl of cake. Price will rise. And then more news to follow.
I think too many felt price would rise before news. Remember penny stock everything comes off the news. Approval is the whole key. If there is approval then Bill's word have even more meaning. So lets not get discouraged.
I do not have any. I live in New Jersey but I am sure Fitx crew made sure everything fit specifications. Even if there is a problem will not be major, not that I for-see any.
You do think with the license approval we will head north for a while. I just want to understand your email. Certainly we will see more news then approval.
I believe either next week or the following week. No later. We may hear other news, such as how we are doing with hemp. Possible audit date. However, I feel audit will be done after we do license because value of company increases. Right we have a building that is done, a second on the way which can not house even one plant. So for the purposes we have no real value.
Phot and Cann buy getting suspended have hurt this sector. No doubt the SEC is looking more closely at these companies. Thankfully we have two new Board Members who have a reputation. Still the above two stocks hurt this entire sector along with Hemp and MJNA. I do feel the news when it comes out will override the problems caused by the above. Bill is right in establishing before it comes out we have solid board members. Go fitx
Problem with charts that are based on the way the stock has been trending, not on the effect of news which can be a game changer. Yes if there was not great news, such as a license about to come chart is accurate. News is always the disruptive factor. Always in pennies. Why buy into a company that has not made a dime off a product and has a new state of the art building that is empty. However, licensing news will change all that.
You are exactly correct, remember there are Oxycontin clinics in the US. Even though they prescribe illegally they make money. I can assure you based on common sense, patients will flock to those who prescribe. Because of the health care system the more the better for the dr. Also there will be a move to have payment if the Canadian Goverment wants to stop the illegal sale and growth of this MJ. Pharma grade will compete and overtake what is sold on the street. Make no mistake as Colorado found out this is a thriving business which will grow in the next two years. The companies that become brand names will succeed.
When you visit a Dr. you pay for the visit. There may also be tests to determine how much is in your system and if it is safe. Also they make come back to increase or decrease the dosage. Further they could pick up patients they did not have before since they may be more willing to prescribe as compared to other Dr. The increase in patients, monitoring, prescribing are all vehicles for increase revenue. Once patients get use to the fact they can buy high quality pharma grade there will be an increase as I said before those who have cancer, ms, glaucoma, and certain other disease. There is no shortage of patients that take Oxycontin. There will not be with mj.
Your correct and I missed an important point. Thanks for the correction.
There are many FDA drugs such as pain killers, drugs that contain morphine. So what is the big deal about pot. It helps many conditions. If Doctors are so worried why not take the morphine type pain killers off the market. Let's not fool our self's.
Make no mistake once Doctors see money they will be prescribing. Dr. prescribe oxycoton all the time along with valium and a ton of pain killers, all of a sudden there is a moral dilemma. Not a chance. Thanks for the post.
Agreed thanks for your response.
Right now there is not enough to supply the existing patients from what I understand. Once again when legal those on chemo, ms, glaucoma, and others in pain will venture toward Pharma Grade MJ. The fact we have quality control will be an added plus for our consumers. Plus once the prescriptions start you can guarantee everybody and his brother will have an ailment so they can acquire mj. The market is huge not to mention America someday and the foreign market. I would almost bet there our several hundred thousand pot users in Canada right now. So lets not fool ourselves there is huge market.
Stock I was not around all day did anyone mention about the license like seeing someone on sight or anything. Reason I am asking I went to the dentists, and friday I received pain killers for my back some I am walking around like a zombie. Thanks for your help.
Everything is a risk thanks for your response.
Stock if that is true we should be doing great. Thanks for the response.
He is always on schedule. We should hear something within the next two weeks re license. Once again key to share pricing go up, promises of up listing mean nothing compared to license. Yes prices will get competitive once others grow now is the time to establish our and get prescriptions. Aside from the fact if US changes policy we have a big market there. Thanks for your posts.
Very good post. Bottom line better for the company to see if the stock will rise and if there is a need of buyback or Rs. I we are like Sirius no problem at all. Just up-listing will do.
Your take is correct, weed out the bad ones, believe me we become the best game in town for price.
Were would our shares stand if they did an IPO?
Stock do you see a buy back, one that will hurt share price. Or do you see a up lists first.??
Where would the money come from to do the buy back, a buy back that is effective?
The article with "john" is a great article. The paper work will not take long. I am wondering if we can get on the American Stock Exchange.?
What do you think about a move the American Stock Exchange? Would we qualify?
Key Line in Article
Due to the current market caps, amount of shares, and PPS of these publicly listed MMPR applicants there is the possibility of companies dramatically increasing their PPS due to the anticipation and/or reception of an MMPR license.
Certainly lets hope fitx dramatically increases their pps. Good luck to all.
Great Article
Canada And Cannabis: The MMPR, The MMAR, And The Great Debate
May. 6, 2014 5:50 PM ET | 4 comments | Includes: ATTBF, FITX, MDCN, MDRM, SPRWF
Disclosure: I am long MDCN, ATTBF, ENRT, LXRP, RSSFF. (More...)
Summary
These Canadian laws are very different: MMPR is highly regulated with safety/quality lab-tested assurance and MMAR is not adequately regulated/open for abuse with safety/quality not enforced.
Unregulated MMAR marijuana gray/black markets are associated with endangering safety and the youth, as well as increasing crime.
Canada has increasing debt and an illicit drug (marijuana) crime burden, which could be reduced with the MMPR and its potentially large market cap.
MMPR provides faster and easier access to safer MMJ; MMPR has the capability of diminishing illegal grow-ops. However, if MMAR coexists with MMPR, MMPR will likely surpass MMAR.
There are a few existing licensed MMPR companies and many applicants, and I list here several potential prospects that I believe will meet MMPR's criteria.
There has been a lot of interest in cannabis stocks lately in both the United States and Canada. However, the cannabis stocks recently developed in Canada have tremendous potential and actually much more potential than most United States cannabis stocks as marijuana is currently federally illegal in the U.S. The Marihuana for Medical Purposes Regulations (MMPR) law has recently been put into effect in Canada and allow for commercial companies to manufacture and distribute marijuana (and any activity in between seed to sale), which has also allowed imports and exports through some of these companies.
There is considerable controversy in Canada in regard to the Marihuana for Medical Purposes Regulations (MMPR) and the Medical Marihuana Access Regulations (MMAR) laws. The MMAR was supposed to be effectively dissolved on March 31, 2014. However, on March 21, 2014 a judge has reversed this order allowing people to grow, sell, and consume marijuana under the MMAR laws. During that time the MMPR had not been effectively established (supply could not meet demand and/or strains needed were not available, with the required THC/CBD levels) on or by March 31, 2014. This ruling has been appealed and production has begun for companies with MMPR licenses. In this article, I will present details about the MMPR, MMAR and various related issues.
The MMPR
The Medical Marihuana Purposes Regulations (MMPR) recently came into existence on April 1, 2014. These laws were created to "provide access to quality-controlled marihuana for medical purposes, produced under secure and sanitary conditions, to those Canadians who need it, while strengthening the safety of Canadian communities. In addition, the new regulations will also enable more choices of marihuana (marijuana) strains and licensed, commercial suppliers," according to the Minster of Health. Basically, MMPR was made to replace the MMAR and effectively reduce the number of people that are abusing the MMAR laws, illegally profiting, increasing safety of both the product and the environment it is being created in, while making it more accessible and more affordable to retail consumers of MMJ.
The main purpose of the MMPR is to regulate companies that produce MMJ. According to Health Canada, these companies will be subject to a "comprehensive compliance and enforcement regime for licensed commercial producers, centered on regular audits and inspections." MMPR companies will have to be compliant and comprehensive with record keeping, security, and quality control. The MMAR on the other hand, has no enforced safety and inspection requirements.
The Medical Access Regulations (MMAR)
The Marihuana Medical Access Program (MMAP) was established in 1999. MMAP decided to severely limit medical marijuana (MMJ) to those that were in need. In July 2001, the MMAP was replaced by the Marihuana Medical Access Regulations (MMAR). These laws were created to authorize persons to possess dried marijuana/seeds, produce marijuana, and allow designated-person (third-party) production with the support of a physician. Basically, the MMAR was designed to allow people with illnesses/ailments to produce/consume MMJ for the purpose of therapy and treatment. The number of growers/users has been vastly increasing over the years. While many people with a medical condition are benefiting from MMJ under the MMAR laws, it has been deemed to be open to abuse. The MMAR has not kept adequately addressed concerns regarding youth, safety, crime and product quality.
Unregulated Cannabis Gray/Black Markets Associated with Endangering Safety, Crime and the YouthSource: Statistics Canada's Website.
Many grow operations exist in residential areas where children are also present and are exposed to marijuana and chemicals, which is a valid safety concern. More specifically, besides the chemicals, pesticides, allergens, marijuana by-products being put in the air, there are "electrical fires, serious mould problems and violent home invasion by criminals," according to Health Canada and Royal Canadian Mounted Police.
However, the most alarming issue is that organized crime or individuals operating outside the law have been thriving off the sale of marijuana. It is relatively easy for members of these organizations or individuals that decide to illegally grow/profit off of marijuana to obtain seeds, clones, dried herb, extracts, and growing equipment. Canadian law enforcement has been struggling with these organized criminals and individuals operating outside of the law for years, and you can see by the influx of arrests during these various years since 2001 it has an average of 68,000 with a range of 60,000 to 80,000 marijuana arrests a year.
Canada today has no laws supporting recreational use and mandatory criminal offenses in which probation/fines and/or jail/prison time is almost always assumed if that person is charged. Besides that aspect, individuals operating outside the law can effectively have an "off the record" relationship with a grower or somebody that knows a grower. Thus, MMAR is a gray market, which effectively allows a black market to exist.
Youth Accused of Police-Reported Drug Offenses
Source: Statistics Canada.
As you can see from about 1999 to 2007, you see an increasing trend of youth being accused of a drug offense. The MMAP began in 1999 and the MMAR took over in 2001 and is still in effect. Perhaps seeing MMJ usage or it becoming more widely available made youths more susceptible to drug use. If MMAR is still in effect, one would expect the youth to be more susceptible to high levels of cannabis use and this number will likely increase. If the MMAR is dissolved then youth drug use would likely diminish, as law enforcement will be able to more easily detect and deter illegal grow-ops.
Canada's Debt and Crime Rate Burden
Source: Officer of the Auditor General of Canada.
In a General Auditor Report addressing illicit drugs and the federal government's role, it is estimated that cannabis (marijuana) accounts "for over two thirds of the charges, and about half of all charges were for possession." It also states that the economic costs of illicit drugs "include costs of health care system, lost productivity, drug enforcement costs, and property crime… exceed $5 billion a year." That's a lot of money that could significantly be reduced if MMPR succeeded the MMAR.
Marijuana, Its Prices and Estimated Market Cap (Varies)
The price of marijuana usually depends on four factors: quality, yield, availability, and potency. Typically, MMJ in Canada has ranged from $5-$12 a gram (pharmaceutical, high-grade MMJ, indica and/or sativa hybrids, not lower grades) with a few common outliers ($2-$3, this is the cost of growing MMJ to a private/personal MMAR grower and sometimes this price is passed on to consumers whom they usually know on a personal level or a "friend of a friend") and some MMPR and MMAR dispensaries ($8-$12, a lot depends on those four factors). There are even some companies under the MMPR laws that are actually offering marijuana for lesser prices than MMAR dispensaries, but typically both MMAR and MMPR dispensaries offer marijuana to the retail MMJ consumer at prices ranging from $5-$12 per gram, most strains fall in between the $5-$8 range.
It is estimated that there are 2.3 million Canadian marijuana users and roughly 770,000 kg of annual consumption of marijuana (Canadians purchasing illegal marijuana or "self-medicating" are paying $8-$20 a gram). It is reported that there is currently 40,000 registered MMJ users, I believe this number is a conservative estimate, but it is difficult to document the actual amount of MMJ users under the MMAR laws, and more MMJ users will come to light as the MMPR progresses.
MMJ users typically range from moderate users (1-3 grams a day) to chronic users (4-10 grams a day). The MMPR will easily receive 30,000 to 40,000 MMJ users, which would result in an annual market cap of $219 M (30000 X 365 annual X 4g/day X 5 average price per gram) to $511 M (40000 X 365 X 5 X 7). So let's say the MMPR captures half the "annual consumption of marijuana," we would have an annual market cap of $1.54 billion to $3.08 billion, MMPR will likely capture at least a quarter of this market, which is an annual market cap of $770 million to $1.54 billion. Please keep in mind that these numbers could easily be incorrect and actually be much greater since a lot goes undocumented with the MMAR in effect. But also watch what happens with the MMAR and how many MMPR companies exist (currently 13, maybe 10-30 more within this next year), as this will affect the market cap.
Making MMJ Faster, Easily Available and Safer for the Patient
It is actually easier for MMPR patients/consumers to "legally" obtain MMJ in comparison to people that were "legally" obtaining MMJ under the MMAR. This means that MMJ patients/consumers now no longer need to streamline their information through Health Canada, which can be a difficult and longer process. These MMJ patients/consumers can go through an established MMPR company, use either a signature from a nurse practitioner or a physician, and legally obtain up to 3x the amount of their assigned amount (prescription) or 150 grams, whichever is lesser. These companies may also allow copayments, insurance programs, promotional activity and discounts which is beneficial for MMJ patients, as it can increase cost efficiency and accumulation.
Whereas MMPR provides for regulated MMJ, under MMAR such regulation is lacking and the MMJ is not tested nor is quality assured. This may not be that important to a recreational user, but if health is involved this is an extremely important aspect that is currently going ignored under the MMAR laws. MMJ will be thoroughly tested to insure quality and product safety under the MMPR laws. Quality and safety of MMJ can easily be jeopardized by the fertilizers used, pesticides, byproducts, bugs, male/female plants, what comes in contact with the plants (where it is grown), and many other variables. It is necessary that these MMJ patients receive the highest-quality and safest marijuana available to help alleviate and hopefully eliminate symptoms and ailments, instead of posing health risks which some MMJ (under the MMAR or black market) could very well be doing, especially if it is not tested or if the grow sites are not inspected.
How MMPR Will Successfully Diminish Illegal Grow Operations (if the MMAR Is Discontinued)
If the MMAR is dissolved, I hear a lot of misconceptions that people will be turning to the "black market," people will grow illegally and the MMPR will not be successful. The government can easily enforce the disbandment of the MMAR while successfully implementing the MMPR. These are the ways that most illegal grow operations could be effectively discontinued:
1. Marijuana (Cannabis) emits a gas and uses lighting that can be detected by infrared sensors. Helicopters can use infrared sensors and easily fly over buildings and areas to discover marijuana grow operations. This would be most effective in cities and smaller heavily populated areas, still possible for rural areas, but keeping watch on roads from rural to more populous areas would be effective as well. Law enforcement has been using this method for years.
2. It takes a great amount of energy/electricity to grow marijuana. Typically marijuana is grown in light cycles, this is easily identified by electric companies and often flagged if 'suspicious activity' is suspected. Consequently, the electricity company and/or law enforcement will investigate the issue. Again this method has been used for years.
3. Specific supplies and equipment are required for growing marijuana. If this equipment is ordered or bought it can be also flagged and investigated as suspicious behavior. Law enforcement has been using this method for years as well.
4. Perhaps the most common method of eliminating illegal activity to date is people telling on each other or "snitching."
If MMAR is declared dissolved, these methods would effectively diminish any illegal marijuana cultivation and any further illegal process such as distribution and promotion of cannabis to youth.
How MMPR Will Surpass MMAR (in General)
It is possible for the MMAR to be allowed to coexist and if that happens MMPR will likely dominate the MMJ scene, however there will be various issues, which could make growth slower. The MMPR companies are offering varieties of outstanding quality MMJ which is quality/safety controlled, consumers know exactly what they are consuming and they are operating within the safety and standards of that company and government. The MMPR allows MMJ patients to benefit from marijuana and not have to worry about any negative legal repercussions (huge benefit) and to know that the MMJ doesn't contain any harmful byproducts, since it is thoroughly tested for quality and safety (another huge benefit). It is much easier and affordable for people to legally obtain MMJ under the MMPR, since now you can have a nurse practitioner or physician sign your MMJ acquiring document, vs. under the MMAR only a physician can allow a patient to acquire MMJ.
History from different industries and markets have indicated that commercialization and capitalization usually wins -- e.g., Walmart, Sam's Club, CVS and Walgreens vs. Mom and Pop; Redbox or Blockbuster, Hollywood Video, Mom and Pop Video Rental Outlets; eBay... Of course, down the line you'll have some Best Buy/Circuit City/Radio Shack issues or Google/Apple/Microsoft issues (apples to oranges, I know, but similar concepts), but we'll get to those issues when we reach them down the road. It is important to remember people had placed doubt on all of these businesses and their reception. Ultimately having more product, more choices, cheaper prices, and better quality usually succeeds the competition.
MMPR's Existing Companies and Potential Prospects
There are total of 13 companies with MMPR licenses, with only one that is publicly listed on the TSX (Tweed/TWD/TWMJF), and a few others are in due process. There are currently 600+ applicants for an MMPR license, due to the various safety, regulatory, and efficacy requirements it is likely that less than 10%-20% of these companies will receive an MMPR license. The companies that already have their MMPR license are currently producing marijuana, soon this newly formed industry will be at full capacity.
Existing Companies That Are Publicly Listed
Tweed Marijuana (V.TWD, TWMJF*)
Market Cap
114M
Shares Outstanding
35.3M
PPS
2.99
Website
http://www.tweedmarijuana.com
*TWMJF is a trade reporting instrument/a reflection of the foreign shares, not additional shares being listed. The ticker is valid for trade and was created when foreign shares of Tweed Marijuana entered into a U.S. account, it was not requested by Tweed.
Bedrocan (in the process of going public) -- http://www.bedrocan.ca
Potential Prospects That Are Publicly Listed
Medican Enterprises (OTCQB:MDCN)
Market Cap
66.5M
Shares Outstanding
40.3M
PPS
1.65
Website
http://www.medicaninc.com
Abattis Bioceuticals (OTCPK:ATTBF)
Market Cap
51M
Shares Outstanding
47.6M
PPS
.98
Website
http://www.abattis.com
Affinor Resources (C.AFI/RSSFF)
Market Cap
15.6M
Shares Outstanding
35.4M
PPS
.38
Website
http://www.affinorresources.com
Enertopia/Lexaria (OTCQB:OTCQB:ENRT/OTCQB:OTCQB:LXRP)
Market Cap
22M / 5M
Shares Outstanding
87.3M / 18.6M
PPS
.25 / .25
Website
http://www.enertopia.com / http://www.lexariaenergy.com
CEN Biotech Inc. (OTCPK:FITX)
Market Cap
297M
Shares Outstanding
3.4B
PPS
.087
Website
http://www.cenbiotechinc.com
Modern Mobility Aids (OTCPK:MDRM)
Market Cap
24M
Shares Outstanding
195.5M
PPS
.12
Website
http://www.marijuanahmo.com
Supreme Pharmaceuticals (OTCPK:SPRWF)
Market Cap
7M
Shares Outstanding
144.8M
PPS
.045
Website
http://www.supremepharmaceuticals.com
There is definitely vast potential in this newly formed industry. I feel that ultimately MMPR companies will capture a vast majority, if not all MMJ users and this upward trend will likely continue as the MMPR continues to exist. Ultimately, MMPR companies and their potential is largely underestimated.
Due to the current market caps, amount of shares, and PPS of these publicly listed MMPR applicants there is the possibility of companies dramatically increasing their PPS due to the anticipation and/or reception of an MMPR license. Companies will likely increase their value as the chances of receiving an MMPR license increase, such as recruiting exceptional leadership/experts and acquiring interests which are progressive towards receiving an MMPR license and their business. Those with MMPR licenses are likely to increase their PPS with increasing demand and supply issues, anticipation of earnings, and various catalysts pertaining to that particular company and/or the marijuana industry within Canada. Increased earnings could lead to further progression in the industry and dividends.
This is a very important time period for both MMPR applicants and licensees. When reviewing and considering whether or not to invest in an MMPR company, it is very important to look at the company's management when deciding if a company can fulfill the numerous tasks required by the MMPR. I believe the prospective companies I've listed will meet the necessary criteria, but whether or not they receive an MMPR license is a different story. Please do not make any decisions solely based on this article, research the MMPR/MMAR/Canada topic yourself and make your own decisions. Whether or not you're investing in the MMPR, I think it's definitely very interesting what is happening with these companies, the MMPR, the MMAR, and Canada, in general.
Comparing and contrasting the MMPR to the MMAR is a sensitive issue, but unfortunately the MMAR has been repeatedly abused and has in turn caused negative impacts on Canadian society, safety, economy and possibly even health since people growing under the MMAR are not testing for product safety (mold is a prevalent issue and has been discovered in grow-ops). MMAR may or may not continue to exist, it seems that MMAR makes it easy for people with MMAR licenses to grow/consume MMJ but as a result is indirectly/directly causing a negative impact on Canadian society/economy, as well as possible health and safety risks. I believe that MMPR's testing and regulation of MMJ, as well as increasing the accessibility and availability of MMJ will give MMPR a significant advantage regardless. Whether the market cap of Canada's MMJ industry proves to be $219 million or $1.3 billion, this number will likely increase as time progresses.
Editor's Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
Additional disclosure: I may also initiate a long position in V.TWD, MDRM, and/or SPRWF over the next 72 hours
UPDATE YOUR ALERT SUBSCRIPTIONS NOW:
Symbol
Alerts Price Chg % Chg
AND
Global X FTSE Andean 40 ETF
11.03 -0.03 -0.31
With this kind of news and a barrage of well timed PR's over the next three weeks this could shock the best of us. I just don't know how high even when you take in the shares outstanding. If it hits dot.com proportions look out.
Great Post now lets get on CNBC or Bloomberg. Thanks for the news. Once again very hard to see what price will be.
First I appreciate every post yours and others. It gives food for thought. However this sector could explode the potential is there. That is what has everyone high on it if you will. So lets see what happens.