Just doing some comparison and trying not to cross promote or name drop but that's not really possible if trying to find some semblance of a credible comparison. Essentially just looking at the value of the recent agreement with Priceline. I fully anticipate Chemist Warehouse will be signed as a distributor within the next three months as they cannot afford their competition to gain market share dominance of new pharmaceutical cannabis related products.
Ref: BOD, Priceline 19th Sep Agreement, Chemist Warehouse 9th Nov Agreement. Record revenue of $1.22 million for the last quarter of 2018, underpinned by an expansion of its product range Bod achieves record revenue of $1.22m for the Dec 2018 quarter – with product sales comprising$766,000. Representing a 260% increase on Q1 FY2018 and 129% Q2 FY2018 expansion of natural medicines range, newdistribution deals with Priceline and Chemist Warehouse.
This gives a relative (but inaccurate) indication of the kind of % sales increase to be expected from Medlab. Medlab have sales revenue around $1.6mil for the Dec quarter so their sales should eclipse BOD if rolled out and marketed correctly.
Medlab next quarter total estimated cash outflows -$3,495,000 Cash on hand as of Dec quarter $16,116,000. > 1 year working capital without any revenue or tax incentives whatsoever. If Including current revenue, Medlab likely has > 24 months working capital. Very healthy balance sheet.
I anticipate Medlab to still be negative Net revenue 1st quarter 2019 but to then break even 2nd quarter 2019. After that I anticipate positive net cash flow sometime in 2nd half 2019. Half yearly report will be really interesting. Until then it's buy the dips and continue accumulating. Expecting a very solid back half 2019 with early 2020 to be a breakout period and get back to the $1.00 SP range based on sales alone and not taking into account further research developments or alternative distribution agreements.
Above is not advice and assumptions were made that may be inaccurate. GLA
MDC Price at posting:
42.5¢ Sentiment: Buy Disclosure: Held
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