Q: This company continues to make the headlines with new contracts and good news... I know it is a Cannabis company which is overvalued based on current sales, revenue earnings etc, but they have a low P/S in relation to peers, positive EBITDA and positive cash flow from operations).
I own it already and recently asked a question after their 2nd quarter. Today they announce at $30 million agreement with Cronos Group for 18 months with an additional $30 million revenue potential PLUS a separate tolling agreement (which they also offer to multiple large Cannabis companies. They are close to EU GMP facility certification which will be a big step for them for sales to Europe and for medical cannabis sales. They have hinted at CPG deals in the works and with upcoming vape pens and edibles etc being legal in the fall it seems like there are lots of positive catalysts for this stock in particular. What to you would be a good way to value this type of company which focuses on extraction not dried flower sales. What are your thoughts on the recent deal announced?
I own it already and recently asked a question after their 2nd quarter. Today they announce at $30 million agreement with Cronos Group for 18 months with an additional $30 million revenue potential PLUS a separate tolling agreement (which they also offer to multiple large Cannabis companies. They are close to EU GMP facility certification which will be a big step for them for sales to Europe and for medical cannabis sales. They have hinted at CPG deals in the works and with upcoming vape pens and edibles etc being legal in the fall it seems like there are lots of positive catalysts for this stock in particular. What to you would be a good way to value this type of company which focuses on extraction not dried flower sales. What are your thoughts on the recent deal announced?