MediPharm Labs Corp (MEDIF)

[Emerald77]

Thanks for presenting your thesis. Could you please back test 50% theory with Valens Groworks vgwcf, comparable extraction play? They sold shares on March 19 @ USD 2.20. On closing of placement on April 9th pps jumped to 2.50, reaching high of 3.60 on April 30th. On May 2nd they accelerated warrants conversions putting pressure. With 2 months from March 19th, and even with summer drawn down it is still at 2.90. Thoughts?

Fundamentally, at the time of financing, vgwcf had 0 revenue vs medif 22 million. Vgwcf got total of $43 million including ton of warrants whereas after deal closing medif could potentially get 87 million (no warrants)plus 20 million already secured as loan. Total $107 million which will be 21% of current market cap with diluted share count.

However, it may not be far fetched for stock to retest 3.80 with current market conditions. ETF MJ which holds only .89% of assets in medif will start rebalancing June 1-18. With medif at 4th place(revenue) among Canadian MJ stocks, ETF MJ will favor increasing medif allocation especially with depressed pps. This should provide price stability.