Q: I am considering investing in this company as it appears to be one of the only companies in this sector that is growing even though it is not a big. Can you please give me your analysis on its prospects and position and advise if it is worthwhile long term investment,
5i Research Answer:
Please also see this prior answer. HASH is a $72 mln company trading on the venture exchange operating in the cannabis space. The company is generaing negative cash flows currently. We would view it as just a bit too small and speculative for our tastes. Still, it has done well. Growth in sales is solid, but is from a small base ($11M). Insiders are now at 20%. It recently made a $16M acquisition of CanadaBis Capital, increasing its market share in the preroll category. We would like to see positive cash flow here to offset some of the small cap and sector risks, which remain very high.