JohnCM Investment Corner

[JohnCM]

Outstanding Shares
313,886,500
12/31/2020

Not the worst. Right in the middle between good and too many.

Third Quarter 2020 and YTD Financial Highlights:

Core cannabis revenues of $13.5 million "too low" in Q3 represent a 220% increase compared with $4.2 million in Q3 2019. For the nine months ended September 30, 2020, core cannabis revenues totaled $30.5 million, a 168% increase compared with $11.4 million for the first nine months of 2019;

Gross profit from the core cannabis business increased 221% to $8.7 million for Q3 compared with $2.7 million for the same period in 2019.

For the nine months ended September 30, 2020, gross profit from the core cannabis business totaled $19.7 million, a 159% increase from $7.6 million for the first nine months of 2019;

EBITDA for Q3 was $4.4 million compared to an EBITDA loss of $733,000 for the same period in 2019. GOOD!!

For the nine months ended September 30, 2020, EBITDA totaled $8.6 million compared to an EBITDA loss of $1.3 million for the first nine months of 2019; GOOD!

The foregoing 2019 revenues, gross profit and EBITDA information have been adjusted, for comparative purposes, to remove the impact from the one-time sales of hemp seeds during the same periods in 2019; and
The Company continues to take steps to improve financial flexibility and improve liquidity through debt restructuring activities.

My criteria;

#1. I like to see at least 100M in annual sales.
#2. I like to see an outstanding share number of less than 300M.
#3. The stock must have momentum. Especially right now.
#4. The company should be on the way to EBITDA break-even, if not there yet.
#5. Maybe a turnaround story, or legit, right out of the box.
#6. Typically will be focused on the U.S., not Canada.
#7. For now, will be marijuana only. No hemp.