MediPharm Labs Investors Should Benefit from an Upgrade

MediPharm Labs Corp. (TSXV:LABS), one of the Canadian marijuana stocks, said it has applied to list its common shares on the Toronto Stock Exchange

SmallCapPower | June 24, 2019: MediPharm Labs Corp. (TSXV:LABS) (OTCQX:MEDIF), one of the Canadian cannabis stocks, Tuesday announced that it has applied to list its common shares on the Toronto Stock Exchange (TSX). The Company added, however, that the TSX has not conditionally approved the Company’s listing application and there is no assurance an approval is forthcoming.

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Benefits for MediPharm Labs to up-list from the Toronto Venture Exchange to the Toronto Stock Exchange include: 1) better access to international institutional investors; 2) enhanced liquidity; 3) specialized indices; 4) greater visibility; 5) more opportunities for analyst coverage.

Did you know that Ubika Alpha first wrote about MediPharm Labs shares on January 18, 2019 at a price of $1.96? Read the original report here

A potential drawback, though, is that the corporate governance policies and disclosure requirements of the TSX are generally stricter than the TSXV, creating additional expenses for the Company.

MediPharm Labs is a global leader in specialized, research-driven cannabis extraction, distillation, purification and cannabinoid isolation, with operations in Canada and Australia. The Company focuses exclusively on cannabis oil extraction and operates a cGMP facility and ISO-rated laboratory clean rooms in Barrie, Ontario to produce purified, pharma-grade cannabis oil. Through its subsidiary, MediPharm Labs Australia Pty. Ltd., MediPharm Labs has also completed its application process with the federal Office of Drug Control to extract and import medical cannabis products in Australia.

Read: MediPharm Labs Revenue Growth is Just Getting Started

Following the release of its first-quarter 2019 financial results, MediPharm Labs is now in the Top 4 of Canadian cannabis companies in terms of revenue (revenue came in at $22.0 million, a 115% increase over the prior quarter), beating many $1B market cap licensed producers including Aphria Inc. (TSX:APHA) (Q3/19), CannTrust Holdings Inc. (TSX:TRST) (Q4/18), and HEXO Corp. (TSX:HEXO) (Q2/19), which came in at $17.9M, $16.2M, and $13.4M, respectively.

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In addition, MediPharm’s management believes that private-label revenue should increase in the coming quarters. This is due primarily to a poor retail roll-out in Ontario and British Columbia, as well as a lack of supply chain & distribution, which has created a situation where cultivators are eager to sell large volumes of cannabis biomass under wholesale agreements to expedite sales.

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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