Subscribers may recall our exclusive interview with CHV that was published just one day prior to their wholly owned subsidiary Abba Medix being granted their production license by Health Canada. Based on that Q&A, some astute Retail Investors may have taken immediate decisive action. The share price increased by 50% on the day the license was granted. A detailed overview can also be found in last month’s case study.
The low market cap with a company that has increasing monthly revenues and client base may be an attraction to many. However, the company has also faced delays and challenges with respect to accessing needed financial information from one of its wholly owned subsidiaries (Ananda Clinics Inc). The last published financial statements were for Q3 of their last financial year (Jan 31, 2017).
According to a recent news release, “The Company is working diligently to effect the Required Filings and expects to do so before the end of September.” We will be looking at three key metrics in these financial statements – (1)
cash position; (2)
MFT revenues;
and (3) subse-
quent events
including the
announced date
for issuance of the 2017 Q1 financial statements as at July 31, 2017.
Because operations ramped up to complete Abba Medix in preparation of being granted a license combined with expansion of their wholly owned MFT network, the calculated burn rate on April 30th may not be representative.
Highlights
All 3 wholly owned subsidiaries, in time, will be revenue generating.
The company will be vertically integrated once a sales license is granted for their LP.
MFT is one of the most trusted networks available with convenient locations for many as well as online appointments.
If a prescription is granted, a patient can choose either one or two LPs and there is no cost to the patients OR to the health care system.
Patients benefit from having a dedicated team that is available to them regularly and through follow up scheduled appointments.
In an August news release, MFT stated it was on track to be adding 1,000 or more new patients per month for the balance of the year.
Extended their production faciliy’s lease another 10 years.
A link to their May 2017 corporate presentation can be found on our “Article links” page; however, according to their estimates, CHV’s 2018 gross revenue is
expected to be approximately $30M with an operating income of approximately $18M. The current market cap once again is less than $23M. For the patient and prepared investor, CHV may be one to consider closely especially for any opportunities to participate in any financing opportunities.
CANADA HOUSE WELLNESS GROUP INC
CSE:CHV
As At Sept 22, 2017
Shares Outstanding: 82,420,228 (www.cse.com)
Share Price: $0.195 Market Cap: $22,694,895
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