The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
It’s very complex politically and big politics moves slowly. U.K. banned cannabis in 1928 and today it’s the worlds largest exporter of medical cannabis and bizarrely imports ALL the medical cannabis that doctors prescribe in the U.K.
USA federally banned since 1937 though half the states now allow it via state law. All cash transactions as the banks won’t touch it (SAFE Banking Act solves this) I can buy in one state and be unable legally to smoke it in another state.
Germany the coalition government have got cross party agreement in place to legalise recreational with a few EU minor roadblocks to overcome. Whatever Germany does first then the whole EU will follow. The amounts of cannabis investment going on over the last few months in Germany suggests it’s when rather than if.
https://businesscann.com/treasury-should-unlock-cannabis-economic-benefits-says-cic/
Barwick the SAFE banking and Germany legalising recreational cannabis are bonuses to SEED.
Safe banking Act will merely kickstart a general cannabis stock boom and we get pulled along in the market move.
Germany recreational cannabis gets legalised then the medical cannabis companies that we are invested in will be the amongst the first approved producers for the new sector.
The medical cannabis sector(the sector seed is fully concentrated on) is growing exponentially and as LGP/Avextra continue to grow and win larger contracts then Seed holders benefit.
This is not a difficult concept.
Not much selling either. It’s knocking around these levels as we all await the Leap monies RNS, LGP to pick up, Northern Leaf IPO to be announced, Inveniam to update their figures, Juvenescence to announce something etc . Half way through Q1 today…the news is coming.
It’s an investment fund
Look at all of the investments and come up with your own valuations for each investee using your own research and you will come up with your NAV.
Then compare to the current MCAP
Consider what effect receiving £2.5m cash for 1st instalment payment will have.
Add in £250,000 loan repayment they will receive at same time from Leap.
We’ve been told by a Northern Leaf pre-IPO investor on this board that the IPO is due to be announced. Seed have £720,000 invested to be converted at 25% discount.
For years we have had Ed hasn’t invested so why should we written on this board…well he has just bought 2% of the company at the correct time (near all time low).
Consider why Barwick/longlad spend every waking moment warning you off buying yet both still hold…
MCAP is less than 1/3rd known NAV. I’m quite happy with SP remaining at this level quite a while longer as it has enabled me to average down to below Ed at 2.42p…the deramp has been very strong and I’d like to thank the above two and a few others for helping enable this. Very kind.
A very significant RNS. There is a lot to read and grasp.
Key extracts
SEED's holding in Avextra FDB 7.48 per cent.
Avextra Successfully Exports Oil-Based Cannabis Medicines to the United Kingdom - why is this important? Because…
The UK is the world's largest exporter of Cannabis-based medicines and therefore one of the strictest jurisdictions in the world for their IMPORTS.
Avextra's commitment to producing safe and effective products has been recognised by regulatory bodies, allowing the company to enter new markets.
Significant quote "Regulations are developing in a positive direction across Europe as governments and the medical community continue to recognise the benefits of medical cannabis and its potential to improve patients' quality of life“.
Inveniam hosting this in March https://inveniam.io/data3-live/
Participants include Blackrock Goldman Sachs Apex JP Morgan etc
https://twitter.com/greenhamneggs/status/1622388923107315712?s=46&t=r0Q3ahRiBoun9BMYf03zwQ
Have a preview gals
Up 27% at time of posting