With valuations of medical marijuana producers in Canada infamously having flown into crazytown territory over the last year, it’s jarring to see a new entrant land on the exchange with ‘only’ a $53 million market cap.
But that’s the tale of the first day of WeedMD’s public markets life.
With a 26,000 sq. ft. facility in Aylmer Ontario, a license to produce (though not yet sell), a commercial extraction lab expected to be ready by Q2, and plans to grow out to 220k sq. ft, comparables in the space show far higher valuations than the ominously tickered WMD.
Beleave (BE.C), as an example, is at the pre-licensing inspection stage and has a $55m market cap, while Maple Leaf Grow World (MGW.V), which has as many marijuana grow licenses as I do, sits at a $67m value.
Trading opened in the $1.20 range before petering down to $0.80 and ending around $0.90, with 4.3m volume.
WeedMD rolled into the old Aumento Capital shell and has stated their focus is and will be on supplying product to seniors, the medical industry, and long term care.