The $50k Challenge Update 18 – 24/11/2020
Stock Code: EMD
Shares Purchased: 352,941
Share Price: 0.087
Reason for buying
- Low market cap of $18m with $2m in cash
- Board of Directors own 32% of the register
- Top 20 own 59% of the register
- No debt
- Cannabis sector just starting early phase bull market due to recent legislative changes.
- EMD undervalued compared to peers in the sector.
- A number of milestones due in first half of 2021 which if achieved should results in a much higher valuation
Risks:
1) Obvious risk with any bio tech is share price and success is highly dependent on trial results.
2) More capital will be required in the future, however if company milestones are met then capital raise price should be much higher than current levels.