MediPharm Labs Corp (MEDIF)

[FUNMAN]

I'm not smart enough to know who the winner will be, but I really like what appears to be MediPharm's first mover advantage in the EU.

That multiples the Canadian market 3x's (Germany alone) to what, 10x's including the entire EU?

I like your point about how long it's taken MediPharm to work through the process and how Australia is already paid for. We have really heard nothing about the EU with Valens other than we know they want to do it.

BTW, don't forget about Valens investing another $10M in the Toronto Cider Co. I think they bought it for $7M.

As for the big LP's falling on their faces and the potential risk. The Valens podcast interviews with the CEO left me believing they got that under control. They are also going to have more than a dozen customers with none contributing more than 20% to revenues. They seem to be adding customers and stated that they intend to bring down to under 10% what any one company contributes to revenues.

The X-Factor is that when the huge LP's are right sized, they won't be so huge any more. They might not exist anymore.

But that doesn't mean the demand for Cannabis 2.0 products won't exist. It will, and leaner and meaner companies will start up to satisfy those edibles cravings. They'll need Valens or MediPharm to keep their CAPEX investments low.

There is room for both of the big extractors.

Not to be forgotten, there are a bunch of smaller LP's out there that also invested in extraction. They came to the game later than the monsters, so their business plans were to be leaner and meaner.