Pharmacielo Ltd (PCLO)

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$PCLO
Analysts at GMP just initiated coverage on PharmaCielo Ltd. (PHCEF)(PCLO) with a Buy rating and a price target of C$12. They also note that PCLO is the best pure-play on the global CDB market. “We consider PCLO to be the most advanced Colombian licensed producer currently, providing a ~6–18 month first-mover advantage over nearly all Colombian competitors. In addition, with CBD extract capacity expected to reach ~17 tonnes in 2019, we believe this qualifies PCLO as the largest international publicly-traded producer.”

“With favorable Colombian regulations, we estimate PCLO could have CBD yields ~250x–300x higher than those available to global peers. We believe PCLO could achieve CBD extract production costs as low as ~$0.15–0.25/gram, potentially the lowest globally.”