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The company has been diligent in its capital spending, with a focus on forming synergies with producers that manufacture for them, as we have seen with their FSD Pharma arrangement. This works to preserve cash flow both in the short and long term.
Here is a great video of a Proactive Investors interview with CFO Richard Goldstein discussing their FSD Pharma partnership:
In May, Canntab received a license to cultivate Industrial Hemp. The company has secured two locations (Ontario and Saskatchewan) totalling 560 acres, and has agreements with third-party agents to cultivate the hemp, which will be used to extract cannabidiol (CBD) to be used in its CBD gel capsules and hard pills. Just a week after receiving its license, Canntab announced that it signed a Term Sheet (step before the Final Agreement) with Heritage Cannabis Holdings Corp (CSE:CANN) to manufacture CBD capsules, effective immediately.
The company plans to persue other white labelling opportunities that I am sure we will be hearing about in the not so distant future given how quickly it has secured a deal with Heritage Cannabis.
of shareholders are held by founders.
Despite their lack of revenue currently, Canntab has a market cap of just over $17 million, so there is confidence in their plan, vision and execution of their plan among the investment community. As revenues start to increase substantially through the rest of 2019 and into the future, Canntab is positioning itself to be a key player in the medical market for alternative delivery method for cannabinoids. CannaInvestor Magazine will revisit Canntab in the late Fall and report back on how things have changed.