MediPharm Labs Corp. (OTCMKTS – MEDIF) Announces Solid Results, Stock Doubles in Six Weeks
MediPharm Labs Corp. (OTCMKTS – MEDIF) stock has been on fire over the past six weeks amid several headlines by the company. MEDIF stock has jumped over 100% since March 2019. MediPharm’s stock is up another 5% in early trading session after hitting a new 52-week high of $4.99.
This morning, MediPharm reported solid revenue growth in its fiscal first quarter. The company’s revenue soared 115% year over year to $22 million. Moreover, gross margin was stood at 31%.
Adjusted EBITDA increased by 102% to $4.3 million, over Q4 2018, Adjusted EBITDA. Acquired more than 5,000 kg of dried cannabis in the last two weeks of Q1 from multiple Licensed Producers to fulfill robust demand for private label offerings.
Last week, MediPharm Labs begun trading under the symbol MEDIF after upgrading from OTCQB Venture Market to OTCQX Best Market. Additionally, The company also announced that it has received Depository Trust company eligibility for its common stock in the US.
DTC Eligibility
DTC eligibility simplifies the trading and transferring of common stock between brokerages in the United States. Patrick McCutcheon the CEO of MediPharm Labs stated that the company was delighted to receive DTC eligibility which will facilitate the trading of the company’s common stock in the markets. He added that they are also pursuing other opportunities to strengthen and enhance the company’s liquidity and value for stockholders while increasing accessibility for investors and institution in the US.
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MediPharm Labs common stock will be settled and distributed through the automated DTC processes which give greater efficiency at reduced costs because of the use of electronic clearing and accelerated settlement of securities.
Change Of Ticker Symbol
The company indicated t5hat FINRA had approved the change of their stock trading symbol from “MLCPF” to “MEDIF” on OTCQB Markets. McCutcheon stated that as a fully licensed producer, MediPharm has scaled its operations to become a dominant market Leader in the processing of cannabis and manufacture of high-quality cannabis pharmaceutical products. he added that the company has embarked on an ambitious plan to boost its international and local growth as they strive to become a market leader.
The upgrading from the OTCQB Market to the OTCQX Market is one of the steps the company is taking to attain accelerated growth and it also shows the commitment of the company to transparency and improving liquidity. It is also a way of enhancing MediPharm’s exposure and access to investors to be part of the success of the company.
Jason Paltrowitz the OTC Markets Group Executive Vice President of Corporate Services indicated that MediPharm Labs was among a number of leading companies and innovators in their industry that have joined OTCQX Best Market. He added that OTCQX enables companies to provide investors with a transparent public market to research and trade their shares.
Considering the recent rally in the stock, it would be interesting to see where the stock will go from here on.
Bitcoin (BTC) Price Continues To Hit Highs For 2019 On Positive Sentiment
During the 2017 bullish run, the markets of Bitcoin (BTC) and Altcoins were inversely correlated where one could surge at the expense of the other. Traders and investors used to switch between the two assets and considering there are so many stablecoins nowadays one could assume that the correlation diminished but it has grown stronger than ever.
BTC Up 3% Today
Bitcoin Price has been on the upward trend in recent weeks and it was up 3% on the day during the Asian trading this morning setting a new six month and 2019 high of $6,290. Since breaking the $6,000 barrier yesterday BTC has not dropped and its volume has increased to around $18 billion as it continues to push higher.
Since last Friday Bitcoin has been on the rise gaining 12% to outperform almost all competitors. Following this market dominance, this is the highest BTC has been in the past 17 months at 58.3%.
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Altcoins Continue To Take A Hammering
The 66% surge of bitcoin since the beginning of 2019 has been at the expense of Altcoins which are receiving a beating today. Although Ethereum is still flat its market share has nonetheless dropped below 10%. XRP has been on the fall but Ripple has been increasing its supply and currently it is below $0.30. Most of the major cryptocurrencies have been taking a beating and have dropped between 3% and 8% on the day.
In a tweet Bitcoin trader ‘SalsaTekila’ predicted that Bitcoin price will continue with the upward trend to over $6,400 before experiencing any kind of drop. This was 2018’s most traded price so there is a strong possibility as it is only $150 away from the present prices.
Usually, weekends are sluggish when it comes to crypto trading activity and thus if Bitcoin price remains above $6,000 then more gains should be expected. The crypto market currently looks like the Q3 2017 when BTC surged at altcoins’ expense.
Harte Gold Corp. (OTCMKTS – HRTFF) Announce Refinancing Of Its Debt, Shares Jump
Shares of Harte Gold Corp. (OTCMKTS:HRTFF) are on fire over the past one week as the stock has jumped over 30% since May 02.
yesterday, the company had announced the total refinancing of its debt and the receipt of approval to expand operational throughput to 800 tonnes per day from 540 tonnes per day. The company has also announced the Feasibility study results of its 100% owned Sugar Zone Mine in White River Ontario.
Refinancing debt
The company has completed its BNP Paribas debt financing package for $72.5 million which comprises of a 6-year term loan of $52.5 million and 3-year revolving credit facility of $20.0 million. The repayment of the debt will commence on March 31, 2020, when Harte Gold will be produced in full capacity.
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Harte Gold has also settled the $10.0 million equity investment provided by Appian Natural Resources Fund at $0.27 per common stock.
On May 3rd Harte Gold received permits to increase their mine production to 800 tonnes per day which will increase the company’s annual gold production to around 65,000 ounces.
Sugar Zone Mine Feasibility Study
The Feasibility Study indicates probable mineral reserves of 3.9 million tonnes at 7.1g/t Au which contains 890 ounces of gold reflecting a 38% net mining dilution. The production will generate net free cash flow of 30 million annually at $1,300/oz gold. The process plant and mine are already operational thus they will not require any additional construction expenses.
The mine is an expansion opportunity for Harte Gold and it will produce 1,200tpd and could increase gold production to 95,000 ounces which will minimize cash costs based on benefits of scale. The FS demonstrated that the conversion of the near mine exploration target has the potential of extending the mine life as well as reducing mining development expenses for each tonne of ore processed.
Another opportunity identified is the installation of a leach circuit for on-site processing of floatation concentrate which will increase payable gold ounces as well as reduce costs.
Harte Gold is the newest gold producer in Ontario through the 100% owned Sugar Zone Mine in White River Ontario.
Kraig Biocraft Laboratories Inc (OTCMKTS – KBLB) Stock Soars 38% On News Of Entry In Vietnam
Shares of Kraig Biocraft Laboratories, Inc. (OTCMKTS:KBLB) were among the biggest penny stock gainers in Tuesday’s session. The stock jumped 39% to close at $0.34 after the company announced production expansion footprint in Vietnam.
Lansing, Michigan based biotechnology company, Kraig Biocraft Laboratories, is primarily engaged in creating technology that could produce genetically engineered silk and over the past few years, the company has grown by leaps and bounds. However, as everyone knows, a company needs to keep expanding rapidly in such a niche sector and that is what they have done by Kraig Biocraft after they acquired a facility in Vietnam for a lease of 5 years. This is going to raise the company’s ability to produce more of its signature product. On the other hand, Biocraft has also announced that it has entered an arrangement with Polartec to supply this silk for usage in products that are meant for military use.
Big News: Entry in Vietnam
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The recombinant spider skills technology is Kraig Biocraft’s flagship product at this point of time and the company’s decision to expand its production capabilities by acquiring the plant in Vietnam seems to have been a wise decision. The facility in question is located in Quang Nam and is spread of an area of 50,000 square feet.
It will not only allow Biocraft to turbo charge its production of its signature proprietary spider silk product, but also help in keeping costs of production low. The company is currently the leading player in its line of business.
Polartec Deal
Merely increasing production is of not much use, if the products are not actually put to good use and to that end, Kraig Biocraft has entered into an arrangement with Polartec to jointly produce apparels and fabric that will use the recombinant spider silk that the former produces. The two companies have been engaged in joint efforts from as early as 2016 and at the time the spider silks was primarily used in producing military grade products.
However, the potential of Kraig Biocraft’s product when it comes to usage in traditional apparel is far more appealing. For instance, the fabric has the look of luxury and in addition to that, it is apparently far more breathable. In such a situation, it is not a surprise that this particular agreement between the two companies is being looked upon as a potential game changer. Polartec has been involved in fabric tech, apparel design and fabric science since 1981 and could prove to be the ideal partner for Kraig Biocraft.
MedMen Enterprises (OTCQX – MMNFF): MedMen Stock Tumbles 65% From Peak. Time To Buy?
MedMen stock has underperformed the broader cannabis sector over the past one year. The stock has tumbled over 65% from its October peak price of $7.57.
MedMen Enterprises (CSE:MMEN) (OTCQX:MMNFF) has announced the opening of its second location in Sorrento Valley, San Diego California and its third-quarter results.
Sorrento Valley store
The location will be the 11th operational store the company is opening in California.
The Sorento Valley facility is strategically located in San Diego which is a major tourist destination. The opening of the store shows the company’s expansion strategy is in California which is estimated to have a cannabis market potential of $11 billion annually. Recently MedMen reported an estimated $100 million in annual sales in California and a 7% market share2.
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Q3 operating results
In the third quarter, MedMen reported systemwide revenue of $36.6 million that includes its retail operations and it also represents a 22% increase from the second quarter. The revenue recorded also includes the pending acquisition of PharmaCann as well as other smaller buyouts. In the third quarter, pro forma sales grew 11% to around $54.9 million compared to the third quarter last year. PharmaCann posted strong sales growth in the quarterly revenue growing to 15.5 million up from $9.8 million in the second quarter.
MedMen ended the quarter with around 82 licenses and 32 stores which includes pending acquisitions. In October 2018 when MedMen agreed to acquire PharmaCann for $682 million they had on 66 retail licenses. Although the expansion sounds to be a strong sign of progress the full quarterly results might reflect something different.
One thing that should raise eyebrows is how the company generated its Q3 results. Besides sales growth in Nevada and Arizona of 34% and 513% respectively most of its organic sales in 10 southern California locations declined. The 10 locations contributed a combined $24.9 million which was a partly 5% growth from Q2 which is alarming growth for a state that leads in recreational cannabis sales.
Gross margin also dropped from 53% in Q2 to 51% in Q3 despite the company reporting a $19.5 million gross profit. The company expects an operating loss of over $50 million following the trend in subsequent quarters.
Namaste Technologies (OTCQB – NXTTF): Namaste Stock Tumbles 80% From Highs. Time To Buy?
The explosion of the cannabis industry in Canada has led to the emergence of many new businesses surrounding the industry and one of them is online retail for cannabis products. It is, without a doubt, a novel idea and one that would eventually pay off, because of the rising demand of cannabis product and accessories. One of the major names in the cannabis online retail space is Toronto based Namaste Technologies Inc. (TSXV:N) (OTCQB:NXTTF) and considering the line of business the company is in, one would expect them to do well. However, there are some burning issues with the company that could prove to be the undoing of Namaste Technologies in the long run.
Corporate Fraud
Back in 2018, Namaste Technologies seemed to be the next big thing in the cannabis retail space after it recorded staggering growth of 300% in August and generated revenues to the tune of $1.65 million. All the revenues came from its interests in a range of website in Canada. Following in the tradition of major cannabis companies eventually heading to Nasdaq for raising more capital, Namaste Stock did the same but that is when the company’s hidden skeletons came to the fore.
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Citron Research published a report in which it stated that the upper echelons of the company’s management were involved in large scale fraud. Namaste responded with legal proceedings against its CEO, who was eventually fired and made widespread changes at the board level. However, the company has had a disastrous run in 2019 and is yet to file its earnings report for the February quarter.
Updates Missing
Amidst the general meltdown in the company’s standing, Namaste Technologies has also been grossly negligent of providing updates on its corporate situation for quite some time. Other than the update regarding the addition of a board member and then his installation as the chief of the audit committee, no big updates have been forthcoming.
The search for a new CEO is likely still going on but there is no clarity on the matter and an interim CEO is still doing the job. Last but not the least, without further clarity on its earnings and the appointment of a new CEO, it is highly unlikely that the company is going to be looked upon favourably by Wall Street.
Namaste stock has tumbled over 80% from its from its all time high of $3.05.
Protected: Koios Beverage Corp. (OTC:KBEVF – CSE:KBEV) Ramps Up Production to Meet Increased Retail Demand
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Transcanna Holdings (TCAN:CNX) Stock Jumps 675% This year, What’s The Buzz?
Shares of Transcanna Holdings Inc (TCAN:CNX) (TCNAF:OTC) are one of the biggest cannabis stock gainers this year on the Canadian Exchange. The stock is up a huge 675% since the start of this year. Transcanna‘s stock is up another 2% to $7.59 CAD in today session after hitting a new high 52-week high of $7.70.
According to the outfit Grand View Research, the global cannabis industry is projected to be value at a staggering $146.6 billion by 2025. More importantly, the compounded annual growth rate is projected to be 34.6%. When that happens, companies which provide logistical support to the industry is also going to grow and TransCanna Holdings Inc such a company.
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The Canadian company is engaged in distribution and transportation services that are meant for a range of industries. However, its main focus seems to be in Cannabis and it has now emerged that the company has successfully generated a handsome sum of money through a private placement.
New Cannabis Facility
TransCanna targets to build a portfolio of premium brands to capitalize on growing cannabis market. The company plans on acquiring 15 premium brands, manufacture them in a state-of-the-art 196,000 sq. ft. facility that covers everything from the nursery to extraction, and distribute them to a network of dispensaries via an internal sales team. The facility will allow the TransCanna to have a full service operation starting from nursery to extraction and then to distribution. The acquisition of this facility certainly gives the company a firm footing for its future growth and could prove to be a smart investment.
Private Placement
A private placement is often the best way to raise money for a publicly traded company, if it wants to raise fresh capital but does not want to go through the public markets. More often than not, this route is chosen by companies which want to raise capital through institutional investors. The company announced its private placement initiative was launched some time ago but it came to a close in the early days of April and TransCanna managed to raise a handsome $16 million.
The company issued 8,000,000 common shares of the company to the investors at $2.00 and in addition to that each investor was provided with a warrant along with each share. The advantage of the arrangement is that the investor in question would be able to buy a share in TransCanna for $3 until 2022 for each warrant that he owns. For an institutional investor, it is an excellent deal.
Looking Ahead
Following the capital raise, the company is going to spend half of it as an advance on a sprawling cannabis facility. It had made an announcement about the facility earlier this year. In addition to that, TransCanna will also need to use the money for purchasing high end manufacturing equipment and for all other sundry expenses.