E Cannabis Central: MediPharm Labs Shows Impressive Q2 Performance On All Fronts - Stock Still Falls 16%

Catalysts Going Forward

  • Canadian legalization of vapeables, topicals, and edibles in the fall of 2019 which will add significantly to the addressable market for cannabis derivatives
  • Higher margin product development of soft gel caps and vaporizer cartridges
  • Expanded distribution through new supplier status with additional Canadian provincial government cannabis boards
  • Increased production and capacity at its Barrie, Ontario Canadian facility to over 500,000 KG annually of dried cannabis processing with the opening of a new extraction line set to open later this year
  • Realization of new customer agreements currently in process
  • Expected licensing of the MediPharm Labs Australia cannabis extraction facility
  • Expected European Union GMP certification of Barrie, Ontario, Canada facility
  • Evaluation of partnership opportunities in Europe, Latin America, the Caribbean, and South Africa

Stock Price

As can be seen in the chart below, MediPharm Labs' stock price has steadily increased over the past 6 months despite the major volatility along the way.

It's stock appreciated by:

  • 92%% between Dec.31st, 2018 and March 29, 2019
  • 55% between March 29th and June 30th
  • 6% between June 30th and July 31st
  • 30.6% between July 31st and its peak on August 9th the weekend before the Q2 financial report

but dropped 16.3 % last week to its current $6.00 which still represents a 245% increase since the beginning of 2019 and an increase of 15.8% in the past 6 weeks (i.e. since July 31st)

According to Patrick McCutcheon, Chief Executive Officer of MediPharm Labs "the company has become the first public Canadian extraction-only company to deliver bottom-line earnings and do so while investing heavily in sophisticated extraction and production platforms ahead of benefits realized" and "the significant momentum gained through important new customer and procurement relationships, and the successful ramp-up of the Canadian and Australian facilities will drive growth and value for the remainder of this year and well beyond." Source

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