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Cannabis Stocks News

6/14 3:01am
SRJ.V

Spearmint Acquires 4 Vanadium Prospects, the "Chibougamau Vanadium Prospects" in Quebec, Canada

V
ancouver, British Columbia--(Newsfile Corp. - June 14, 2017) - Spearmint Resources Inc. (TSX: SRJ) (OTCBB: SPMTF) (FSE: A2AHL5) ("SRJ" or the "Company") wishes to announce that it has acquired a 100 percent interest in 4 separate vanadium prospects, the "Chibougamau anadium Prospects" all located in the direct vicinity of Lac Chibougamau, Quebec. These 4 separate vanadium prospects comprise 50 separate claims totaling approximately 6,850 acres (2775 hectares).James Nelson, President of Spearmint stated, "We ...
https://finance.yahoo.com/news/spearmint-acquires-4-vanadium-prospe...
6/14 1:15am
ATTBF

Abattis Provides Company Update

submittedby/u/sanghs[link][comments]
https://www.reddit.com/r/weedstocks/comments/6h5gpu/abattis_provide...
6/13 3:30pm
CNAB

United Cannabis Corporation Signs Memo Of Understanding with Herbal Biotech Pathways Labs to Establish Puerto Rican Joint Venture

Cannabis, Distribution, Facilities, Production, Research
C
ompanies Will Establish Grow, Production, Research, and Distribution Facilities to Operate in and Serve the ommonwealth of Puerto Rico DENVER, O / AESSWIRE / June 13, 2017 / United annabis orporation ...
https://finance.yahoo.com/news/united-cannabis-corporation-signs-me...
6/13 3:03pm
ABBV

How AbbVie Inc. Makes Most of Its Money

H
umira remains AbbVie's primary revenue source for now, but the arrival of biosimilars of the popular anti-inflammatory medication is likely to change that.
http://finance.yahoo.com/r/3bdac205-85d8-3c92-aeaf-7958053df7f4/how...
6/13 2:55pm
BLDV

Blue Diamond Ventures Inc. Restructures Around Israeli Cannabis Opportunities

Cannabis
submittedby/u/herb_knight[link][comments]
https://www.reddit.com/r/weedstocks/comments/6h209f/blue_diamond_ve...
6/13 2:05pm
ABBV

An Overview of Imbruvica’s and Venclexta’s Clinical Pipelines

I
n November 2013, AbbVie’s (ABBV) mbruvica received approval from the FDA for the treatment of mantle cell lymphoma (or MCL).
http://finance.yahoo.com/r/61c2657b-03f2-37cf-be86-d294ba6ed879/an-...
6/13 12:35pm
ABBV

Imbruvica May Witness Significant Revenue Growth in 2017

I
n 1Q17, AbbVie’s (ABBV) mbruvica generated revenue of $551 million, which reflected a ~44.7% year-over-year (or YoY) revenue rise and a 7.8% quarter-over-quarter rise.
http://finance.yahoo.com/r/690d4974-9cbb-3b2b-a958-5f529aeaaebf/imb...
6/13 11:17am
BLOZF

Cannabix Set to Begin Trials in BC with New Hire

submittedby/u/sanghs[link][comments]
https://www.reddit.com/r/weedstocks/comments/6h0iet/cannabix_set_to...
6/13 10:50am
INCC Enters

INCC enters into an exclusive license agreement

Research
S
ARAOTA, Fla. , June 13, 2017 /PRNewswire/ -- International Consolidated Companies, Inc. (INCC) announced today it entered into an exclusive license agreement with Brooks Kelly Research, LLC for a patent ...
https://finance.yahoo.com/news/incc-enters-exclusive-license-agreem...
6/13 10:45am
ABBV

Humira May Continue to Drive AbbVie’s Revenue Growth

I
n 2016, AbbVie’s (ABBV) drug Humira reported revenue of ~$16.0 billion, which reflected a ~15% year-over-year (or YoY) rise.
http://finance.yahoo.com/r/f828883b-44e3-3051-9281-e9b005119403/hum...
6/13 10:12am
ACGX

Alliance Creative Group (ACGX) Produced New Packaging for Crossfuel Extreme Performance Black Series

Packaging
A
lliance Creative Group, Inc., is pleased to announce they have produced new packaging for the Crossfuel Extreme Performance Black series. The folding carton has 4-color glossy UV coating, diecut and is ...
https://finance.yahoo.com/news/alliance-creative-group-acgx-produce...
6/13 9:58am
LCTC

Lifeloc Technologies, Inc. :LCTC-US: Earnings Analysis: Q1, 2017 By the Numbers : June 13, 2017

C
ategories: Yahoo FinanceGet free summary analysis Lifeloc Technologies, Inc. reports financial results for the quarter ended March 31, 2017. We analyze the earnings along side the following peers of Lifeloc Technologies, Inc. – Weight Watchers International, Inc., Spark Networks, Inc. and Nutrisystem, Inc. (WTW-US, LOV-US and NTRI-US) that have also reported for this period. Highlights Summary numbers: ... Read more (Read more...)
http://finance.yahoo.com/r/b45ec19a-d0a7-37b3-b7c7-1192dbb32f00/lif...
6/13 9:40am
ZDPY

Zoned Properties, Inc. :ZDPY-US: Earnings Analysis: Q1, 2017 By the Numbers : June 13, 2017

Investments, Real Estate
C
ategories: Yahoo FinanceGet free summary analysis Zoned Properties, Inc. reports financial results for the quarter ended March 31, 2017. We analyze the earnings along side the following peers of Zoned Properties, Inc. – hesapeake Lodging Trust, Retail Opportunity Investments orp., Vornado Realty Trust and Alexandria Real Estate Equities, Inc. (HSP-US, ROI-US, VNO-US and ARE-US) that have also ... Read more (Read more...)
http://finance.yahoo.com/r/9b7bffcc-d7c6-369d-8333-523b52fa5f0b/zon...
6/13 9:36am
BIO

Tetra Bio Pharma Announces UNB Cannabis Health Research Chair

Cannabis, Research
submittedby/u/Atysh1[link][comments]
https://www.reddit.com/r/weedstocks/comments/6gzwfa/tetra_bio_pharm...
6/13 8:44am
CSE:MJ

True Leaf Announces Second Tranche Closing of Private Placement

submittedby/u/sanghs[link][comments]
https://www.reddit.com/r/weedstocks/comments/6gzmf9/true_leaf_annou...
6/13 8:30am
ABBV

AbbVie and Principia Announce Collaboration on Oral Immunoproteasome Inhibitors

Research
&
quot;Principia has discovered a novel technology that has the potential to enhance the treatment landscape for a variety of immunological diseases,quot; said Lisa Olson, vice president, immunology research, AbbVie.
https://finance.yahoo.com/news/abbvie-principia-announce-collaborat...
6/13 8:00am
AMFE

Amfil Technologies Inc. Announces That Our Subsidiary, Snakes & Lattes Inc., Is Expanding Internationally Into the Game Publishing Business

Development
A
mfil Technologies Inc. is pleased to announce that its subsidiary, Snakes & Lattes Inc., will be entering the game development and publishing business. This is a crucial step towards expanding on its ...
https://finance.yahoo.com/news/amfil-technologies-inc-announces-sub...
6/13 8:00am
VPOR

Vapor Group, Inc., VPOR, Announces Easy Grinder Now Appearing in HIGH TIMES and Available to buy on Amazon.com

Advertising, Marketing
V
apor Group, Inc. (OTC Pink: POR), ('Company'), announced today that Easy Grinder™, exclusively distributed by its subsidiary, Total apor, Inc., is being promoted in the 'Shop' section of 'HIGH TIMES' magazine's website at http://hightimes.com/culture/high-buy-easy-grinder/. The Company is also now able to accept orders to ship to Canada. "We are very excited to have launched our ongoing marketing and advertising campaign for Easy Grinder™ in HIGH TIMES," said Yaniv Nahon, COO of the Company.
https://finance.yahoo.com/news/vapor-group-inc-vpor-announces-12000...
6/13 7:45am
ETST

Earth Science Tech, Inc. Announces New Wholly-Owned Subsidiary, KannBidioid Inc., to Manufacture & Distribute Vapes/E-Liquids & Gummy Edibles to Vape/Smoke Shops

Cannabis, CBD, Development, Edibles, Manufacture, Nutraceuticals, Research, Science, Pharmaceuticals
H
ollywood, June 13, 2017-- Earth Science Tech, Inc., an innovative biotech company focused on cannabis CBD-based, cannabinoid research and development, nutraceuticals, pharmaceuticals, medical devices ...
https://finance.yahoo.com/news/earth-science-tech-inc-announces-114...
6/13 6:00am
EXMT

Anything Technologies Media in Negotiation to Acquire Biotech Company specializing in "Ant microbial" Surface Products to Protect Against Harmful Viruses, Bacteria, Molds and Fungi

Media, Products
P
LACERVILLE, CA, June 13, 2017 /RNewswire/ - Anything Technologies Media Inc's. (EXMT) Board of Directors announced today the company is in negotiation to acquire a Biotech Company specializing in surface protestant anti-microbial products that fight against harmful viruses, bacteria, molds and fungi. With the outbreak of many new viruses and bacteria ATM feels that this company has a special niche in the market place and has tremendous potential. ATM has been working with this company over the past several months to acquire them and after a long due diligence process is ready to move forward and close the deal.
https://finance.yahoo.com/news/anything-technologies-media-negotiat...
6/12 8:07pm
APH.V

Aphria and Cannabis Wheaton: Why is Fabrice Taylor Skeptical?

Cannabis
h
ttps://smallcappower.com/top-stories/apria-cannabis-weaton-fabrice-taylor/ I tink te video raises some good questions about Apria's business Wat do you tink about Te opinions in te video ? submitted by /u/roycr [link] [comments]
https://www.reddit.com/r/weedstocks/comments/6gw8n1/aphria_and_cann...
6/12 4:18pm
MON

'Pokémon Go' is throwing another in-game event this week — here's what to expect

P
okémon Go is throwing an in-game "Solstice" event for its 65 million players from June 13...
https://finance.yahoo.com/news/pok-mon-throwing-another-game-201843...
6/12 1:23pm
ICNB

Iconic Brands/ICNB News -- Retains Audit Firm and Legal Counsel

News
I
conic Brands, nc. today announced they have retained BMKR LLP Certified Public Accounts, a registered PCAOB firm, www.bmkr.com, to fully audit the company and allow for trading on a more senior exchange....
https://finance.yahoo.com/news/iconic-brands-icnb-news-retains-1723...
6/12 9:39am
ABT

Abbott Laboratories Saw a Recent Breakout

B
arring a close below $46, we are likely to see AT remain firm and work higher.
http://finance.yahoo.com/r/594f104d-5f82-3607-beae-3f1477ffc766/abb...
6/12 7:36am
IGC

IGC Acquires Exclusive Rights to THC-based treatment for Alzheimer’s Disease

THC
B
ETHESDA, Md., June 12, 2017-- India Globalization Capital, Inc. is pleased to announce that it has entered into a definitive license agreement with the University of South Florida making IGC the exclusive ...
https://finance.yahoo.com/news/igc-acquires-exclusive-rights-thc-11...
6/12 7:30am
EAPH

Easton Pharmaceuticals Announces It Has Finalized Agreement Terms With Alliance Group For Ownership Stake in Several Businesses On 45 Acres Of Agricultural Land, Which Includes The Cultivation of Medical Marijuana For National Canadian Market

Medical Marijuana, Pharmaceuticals, Cultivation
E
aston Pharmaceuticals, Inc. , is pleased to announce, pursuant to its previously announced Letter of Intent with Canadian based -- Alliance Group -- final Terms have been mutually agreed to on a final ...
https://finance.yahoo.com/news/easton-pharmaceuticals-announces-fin...
6/10 12:38pm
ERBB

This Biometric ID System Allows You To Buy Weed, Booze And Other Controlled Products From A Vending Machine

Alcohol, Cannabis, Products, Vending Machines, Pharmaceuticals, Vending Machines
A
merican Green Inc (OTC: ERBB ) recently unveiled a new system that allows vending machines to sell controlled and age-restricted products like alcohol, pharmaceuticals, casino chips, cannabis and even ...
https://finance.yahoo.com/news/biometric-id-system-allows-buy-16381...
6/09 4:15pm
ABBV

AbbVie must pay $15 mln in Depakote birth-defect trial: jury

A
federal jury on Friday awarded $15 million to a 10-year-old boy whose mother blamed his birth defect on bbVie Inc's bipolar disorder drug Depakote that she took while pregnant, in the latest trial among hundreds of lawsuits over the product. Jurors in federal court in East St. Louis, Illinois, awarded the compensatory damages to Stevie Gonzalez, who was born with spina bifida.
https://finance.yahoo.com/news/woman-awarded-15-mln-abbvie-18072569...
6/09 3:56pm
ABT

Abbott Labs Declares Quarterly Dividend

G
lobal health care company will pay its shareholders 26.5 cents per share
https://finance.yahoo.com/news/abbott-labs-declares-quarterly-divid...
6/09 1:22pm
ABBV

AbbVie suffers $15 million loss in Depakote birth-defect trial

A
federal jury on Friday awarded $15 million to a California woman who blamed her son's birth defects on bbVie Inc's bipolar disorder drug Depakote, in the latest trial to spill out of hundreds of lawsuits over the drug. Jurors in federal court in East St. Louis, Illinois, awarded the compensatory damages to Christina Raquel, who said she was not adequately warned about a risk of birth defects when she took Depakote while pregnant.
https://finance.yahoo.com/news/abbvie-suffers-15-million-loss-17220...
6/09 1:12pm
ENDP

Endo's Pain Is Good For Collegium, Mixed For Impax

Food, News
E
ndo International (NDP) is falling Friday, after the Food and Drug Administration asked it to take its pain killer Opana off the market due to abuse concerns. While that means more downside risk for ndo, it's good news for rival Collegium Pharmaceutical (COLL), and mixed news for Impax Laboratories (IPXL), according to Janney Montgomery Scott. Analyst Ken Trbovich reiterated a Buy rating and a $25 fair value estimate on Collegium: While timing remains uncertain, it is clear Opana R will be removed from the market.
http://finance.yahoo.com/r/85665a81-f112-3c6b-a7bf-6c3ffcc138c8/end...
6/09 1:09pm
AGTK

Agritek Holdings, Inc. (AGTK) Announces Pre-Qualification Of Manufacturing License For 25,000 Sq. Ft. Cultivation Operation And Partner In Puerto Rico

Cultivation
submittedby/u/JackieChron[link][comments]
https://www.reddit.com/r/weedstocks/comments/6g9re8/agritek_holding...
6/09 1:04pm
CSE:GAD

What's up with Laguna Blends (LAGBF)?

Investments
W
as checking my investments in Think or Swim today and noticed my shares in LAGBF have been moved to an instrument with a number for a name and when I click on the LAGBF line it shows the company name as Isodiol International Inc. Can someone explain what is going on? submitted by /u/labatts_blue [link] [comments]
https://www.reddit.com/r/weedstocks/comments/6g9q8n/whats_up_with_l...
6/09 12:41pm
ABBV

AbbVie Ordered by Jury to Pay $15 Million to Depakote Victim

A
bbVie Inc. must pay $15 million to compensate a California boy with a split spine for failing to properly warn his mother and her doctors that its Depakote drug could cause birth defects.
http://finance.yahoo.com/r/22078624-e7cc-3cf0-8f19-7c725731466e/abb...
6/09 11:34am
ENDP

Endo International: Flagging the Downside Risk

S
hares of Endo International (ENDP) are tumbling today after the FDA asked that it take its opioid pain killer Opana off the market due to abuse concerns. Endo's Opana ER tried to make the drug less easy to abuse, but the FDA decided that the risks outweighed the benefits. Morgan tanley's David Risinger and team flag the "downside risk" to Endo's earnings: We estimate full-year Opana ER revenue of $131M in 2017 (4% of company total of $3.6B).
http://finance.yahoo.com/r/8b65fd75-1869-3be8-a1ed-65585d1e8e12/end...
6/09 11:08am
AFPW

AlumiFuel: Private Investor & Noteholder Execute Agreement

A
lumiFuel Power Corporation today announced that an accredited private investor and the Company's largest convertible noteholder have entered into a definitive agreement for the acquisition of the majority ...
https://finance.yahoo.com/news/alumifuel-private-investor-noteholde...
6/09 10:23am
ABBV

3 Dividend Stock Winners

L
ooking for great dividend stocks that should be long-term winners? Check out General Motors, Enbridge, and AbbVie.
http://finance.yahoo.com/r/6a39b337-d60c-3420-b34d-d5be8929236a/3-d...
6/09 10:18am
AGTK

Agritek Holdings, Inc. Announces Pre-Qualification Of Manufacturing License For 25,000 Sq. Ft. Cultivation Operation And Partner In Puerto Rico

Cultivation
A
gritek Holdings, Inc. today announced that the Company's operational and licensing partner, 1919 Clinic, has received pre-qualification and preliminary approval for a manufacturing license in addition ...
https://finance.yahoo.com/news/agritek-holdings-inc-announces-pre-1...
6/09 10:15am
ABT

Abbott Declares 374th Consecutive Quarterly Dividend

A
BBOTT PRK, Ill., June 9, 2017 /PRNewswire/ -- The board of directors of bbott (BT) today declared a quarterly common dividend of 26.5 cents per share. This marks the 374th consecutive quarterly dividend to be paid by bbott since 1924. The cash dividend is payable ug. 15, 2017, to shareholders of record at the close of business on July 14, 2017.
https://finance.yahoo.com/news/abbott-declares-374th-consecutive-qu...
6/09 9:45am
CIIX

ChineseInvestors.com Has an Edge in Lucrative Hemp Oil Industry -- CFN Media

Cannabis, Hemp, Media
C
FN Media Group, the leading creative agency and digital media network dedicated to legal cannabis, announces the publication of an article discussing hineseInvestors.com Inc. and its recent expansion ...
https://finance.yahoo.com/news/chineseinvestors-com-edge-lucrative-...
6/09 8:50am
OTC:CANN

General Cannabis Corp Announces its Acquisition of GC Finance Arizona, LLC

Cannabis
D
ENVER, June 09, 2017-- General Cannabis Corp announced today the acquisition of GC Finance Arizona, LLC from Infinity Capital West, LLC. GC Arizona owns two primary assets: 1) a 50% LLC membership interest ...
https://finance.yahoo.com/news/general-cannabis-corp-announces-acqu...
6/09 1:07am
APH.V Acquisitions

Rough draft article on the Emerald Health Therapeutics ($EMH) join venture (specifics, relative valuations, price targets)

Acquisitions, Cannabis, Facilities, Financing, Greenhouses, Grower, Growing, Investment, Leases, Management, Partnerships, Production, Cultivation, Funding
I
ve been working all day on this without break so know that there are gonna be some glaring errors and stuff that left out, but here is my analysis of the Emerald Health Therapeutics ($EMH). Please let me know what to add in, what to change, what questions to answer, etc. The article is also available (in better formatting) at felkerinvesting.com http://www.felkerinvesting.com/2017/06/emerald-health-therapeutics-emc-and.html Earlier this week we saw a game-changing move in the cannabis industry with Emerald Health Therapeutics ($EMH) entering into a joint venture with Village Farms ($VFF), a North American produce-growing company with 4.8 million sq ft of greenhouses in British Columbia, 30 years of operational experience and 750 years of combined "master grower" experience. n the joint venture, Emerald Health will pay $20 million (in tranches) for a 50% stake in the JV that will lease (with the option to buy) 1.1 million sq ft. of existing greenhouse and the option to lease or purchase an additional 3.7 million sq ft. of existing greenhouses owned by Village Farms (for 4.8 million sq ft total). The 1.1 million sq ft. greenhouse is projected for 75,000,000 grams annually and the 4.8 million sq ft. of total greenhouse space should yield over 300,000,000 grams. This puts Emerald Health at the best relative value in the industry by a large margin and also provides the largest margin of safety relative to intrinsic value. This joint venture with Village Farms might be the best acquisition/partnership that we have seen in the industry so far. At $20 million for 50% of the JV-owned 1.1 million sq ft. and 75,000,000 grams annually, Emerald paid $36/sq ft. (1.1 mil / 2 = 550,000 sq ft. ; $20,000,000 / 550,000 sq ft) and $0.53/gram of annual production ($20,000,000 / 37,500,000 grams); this is comparable to Aphrias' greenhouse construction cost of $50/sq ft. and $0.66/gram of annual production, or to $250/sq ft. and $2.56/gram of annual production for Auroras' acquisition cost for Peleton Pharma (for acquisitions, there are comparable numbers in my article on the Mettrum acquisition HERE); it is even comparable to Emeralds' cost for their existing greenhouse that was projected to cost $10,000,000 per 10,000,000 grams of production. The cost for the retrofit of the greenhouse could exceed $20 million but it would have to double/triple before it becomes overpriced relative to other industry acquisitions/partnerships. The JV deal is also to be paid in tranches with only $2 million up front and $18 million to be paid out as milestones are reached, this saves Emerald on the back end if the deal falls through or isn't finished according to plan. Most importantly, in my opinion, is that Emerald just paid $20,000,000 for 37,500,000 grams of annual production, which should end up producing $30,000,000-40,000,000 net, annually. Emerald will still need to retrofit the existing greenhouses for cannabis production, which according to Village Farms most recent investor presentation, should initiate the cultivation license process in June 2017, the greenhouse conversion process in Summer 2017 (completing March 2018), and the growing process in late 2018. t seems that an in-process tomato crop in the current greenhouse is delaying the process (tomato crop completed Nov 2017) but even with growing starting late 2018, 'm still optimistic. We obviously want production as soon as possible but this is an eternal industry with a lot of variables still left to play out, a 6 month delay from legalization does not ruin the investment merit of this company and the point still stands that they are priced at close to 2-3x net income for 2019 (without the addition 3.7 million sq ft from the JV and further expansion on their own facility). Emerald also has 10,000,000 grams planned for production by legalization from their current facility in British Columbia and up to 100,000,000 grams if the full footprint is built out. A quick look at market caps and production across the sector show relative value for Emerald. Market values, planned production, and price per gram of production as of June 8, 2017 Aurora - $680 million - 99.8 million grams - $6.5 per gram of production Canopy - $1.25 billion - 92 million grams - $13.5 per gram of production Aphria - $720 million - 75 million grams - $9.5 per gram of production Organigram - $230 million - 26 million grams - $9 per gram of production Hydropothecary - $150 million - 29 million grams - $5.1 per gram of production Emerald - $120 million - 47.5 million grams - $2.5 per gram of production Price per gram of production is a metric that created to show relative value between companies, based on their planned production relative to their market capitalization. Obviously some companies will deserve a better premium over others based on management, ancillary services, location, competitive advantage, etc. We see here that Emerald is priced at almost 1/2 of Organigram while producing almost 2x more product. Emerald is also 17.5% the size of Aurora but is slated to produce 50% as much product, if Emerald was priced the same as Aurora (in terms of price per gram of planned production) it would be worth $308,750,000, obviously Aurora is going to be worth more per gram of production because they have a different management, different financing, different location, different medicinal patients, etc. but Emerald still has incredible value when looking at relative industry valuations and valuation relative to net income. For a better relative valuation, Aphria has 75,000,000 grams projected from their 1,000,000 sq ft. greenhouse completing construction in July-August 2018 (growing starting just before or around the same time as Emerald); Emerald is projecting 47,500,000 grams annually (67% of Aphria production) and is priced at 17% of Aphria. Both of these companies use greenhouses and both are low-cost producers. When looking at future potential production, Emerald has a maximum capacity now of 250,000,000 grams annually (at low-end production estimates, more than any other LP) which could net $250,000,000 annually (2x its current market cap). Aurora maximum production is 150,000,000 (50,000,000 of which is dependent on a facility that hasn't been started and is only in the planning/zoning stage, we also haven't heard about the additional facility in quite a few months), Canopy maximum production is 130,000,000 grams (with construction on a large portion of this incomplete/unstarted), this leaves Emerald with the largest potential production for the industry, by far. This is also extremely beneficial for Emerald because, unlike almost ever other LP, these production numbers are backed by actual completed greenhouses (retrofitting is still required, but doesn't require full bottom-up construction and planning like most other LPs). My biggest issue with this industry (and the reason created this spreadsheet) is that the majority of the LPs have planned so much but have so little construction actually underway, Emerald benefits here by not having to plan and construct new facilities from the ground up. Village Farms is located in one of the best climates in Canada for greenhouses, the coldest temperatures during the winter tend to stay above 0 degrees Celsius which should help with heating costs. Aurora, for example, experiences a "real" winter that will require higher heating costs that will cut into COGS during the winter months. Village Farms also owns a 7 MW power plant that is fueled by recycling landfill gas, it is unsure if this is going to be used for the JV. Emerald Health also provides the highest margin of safety relative to intrinsic value out of any LP that follow. Margin of safety is also most apparent for Emerald in the case of a production limit (something that is very possible in the future once supply overtakes demand); Aurora also provides a strong margin of safety in this case, not because of margin of safety relative to V but because they own a supply chain in Germany that could take excess product that might not be allowed in Canada. Risks Emerald (and Village Farms) will still have to raise additional capital to build out the first facility and to retrofit the additional 3.7 million sq ft., this will lead to dilution. dont have much of a disdain for necessary dilution (especially dilution that pays for itself 2x over within its first year or two of production). There is risk of the retrofit being more costly than planned or lagging the proposed timeline. Although extra costs are possible (probable?), lagging the timeline is less possible because the $20 million funding from EMH is in tranches to be paid out based on completing milestones. would also like to know the leasing agreement for the facility and whether the power plant will be used to subsidize power costs. would also like to see the costs for acquiring the additional facilities. am interested in how the 50% ownership will work for Village Farms, will they sell the product to Emerald? Will they receive their own cultivation/sales license and sell their 50% of production themselves? What prices will they be charging Emerald, if Emerald buys their product, or will they sell it to competing LPs? Are all profits from EMH sales from the facilities split in 50%? Will the JV sell under their own label, with 50% of profits funneling to each partner? t also seems like these acquired greenhouses are not as automated as the Aphria/Aurora greenhouses (although labeled "state of the art" in their investor presentation). Are these facilities going to have a long life? s there significant capital spending required in the future for upkeep? Are the facilities going to produce significantly less per square foot as the automated facilities (projections are below-average but estimates are said to be conservative)? Price Targets m writing an article on price targets across the industry so wont go into extreme detail here. This is an extremely simplified price target and in no way represents my analysis on the industry, this company or this JV; this is a quick calculation based on net income for the growth phase on an industry that could very well end up completely different based on how various qualitative/quantitative variables play out. n 2018, Emerald should net $0-10 million depending on how revenues play out from their 10,000,000 gram/100,000 sq ft. facility that is supposed to be finished by legalization. Emerald could net $40-50 million annually from this JV and their facilities combined for 2019 (depending on spending and operations; net incomes should be low for initial phases of legalization due to required spending for expansion). Emerald also has the opportunity to obtain the rest of the 4.8 million sq ft. available, which could push them over $150 million net (47.5 million current + 150 million if all 4.8 million sq ft. is utilized, minus margin of safety; also not including the rest of the 32 acres that Emerald owns that could add another 90 million grams annually if built out). f this joint venture doesn't hit any major roadblocks, Emerald should be worth well over $800,000,000 by 2019. $800,000,000 represents a 20 PE on $40,000,000 (less than $1/net on 47.5 million grams, a low end projection w/ margin of safety), this disregards any additional expansion on their own 1.4 million sq ft. property or the acquisition of the 3.7 million sq ft. that Village Farms has remaining in the JV contract. also believe that valuations for this industry could be higher than average because of a variety of reasons that 've listed HERE in my analysis on the industry. believe that Emerald now has the best potential to be the largest licensed producer in Canada, based on everything that we currently know. t is not crazy to think that Emerald could be worth $1.5-3 billion down the road if there is a market for the 300 million grams that the JV could potentially produce across its 4.8 million sq ft. of greenhouses, plus there is the 1.4 million sq ft. of land that Emerald leases in BC (from the CEO). submitted by /u/TheJosh90 [link] [comments]
https://www.reddit.com/r/weedstocks/comments/6g6dyb/rough_draft_art...