- Future and option contracts
Future contract gives the buyer the obligation, not right to purchase a specfict assets at a specific price at a specific date.
Work-out and Value Investing
The value of work-outs depends on business valuation of the target firm from the point view of an acquirer in acquisition. The type of acquirer can have an impact on the price offerred. Strategitic investment is very different from financial investment in terms of valution structure.
- Terminology and History
Hemp: A plant that is grown specifically for the industrial use of its derived product.
Cannabis: A general name for cannabis plant and related products. Male and female cannabis plant, industrial use cannabis and drug/narcotics cannabis.
THC: The principle chemical component in drug use cannabis.
CBD: The second most abundant cannabinoid in cannabis
Marijuana: A custom name for both medical and drug use cannabis, origined from South America.
Compassionate Access: Potential patient benefit justifies the potential risks of treatment, like using drugs that have not passed the clincal trial; drug used for pain release purposes.
Geographical Distribution of Revenue
Six months ended June 30, 2018, 97% of Revenue were generated in Canada. 3% of Revenue were generated outside Canada. The company has 15% fixed assets located outside Canada and expects the overseas revenue to catch up.
Growth of Expenses
The growth rate of S&M expenses and G&A expenses far exceeds the revenue growth. The profitability of the business is questionable if these expenses cannot be properly optimized.