Cannabis & Hemp Stocks Investment Tools – Schedule Demo Now!

MediPharm Labs Corp: Why did this Hemp Stock Fall Last Week?

MediPharm Labs Corp: Why did this Hemp Stock Fall Last Week?MediPharm Labs Corp (TSX: LABS)(OTCQX: MEDIF) is a Canadian-based cannabis and hemp extraction company which manufactures and sells cannabis and hemp pharmaceutical products. Why did the hemp stock fall last week?

MediPharm released its quarterly earnings last Thursday. In the earnings report, MediPharm missed several key targets and the stock price tumbled 18% from CA$1.70 and is currently trading at CA$1.40. Its year to date returns are a negative 66.7%, however, this hemp stock has returned 100% since it went public in February 2018.

MediPharm’s Q1 2020 earnings highlights

MediPharm Labs Corp: Why did this Hemp Stock Fall Last Week?

MediPharm’s revenues for the first quarter of the year dropped by almost 50% year-over-year. The company management attributes the drop in sales to a slowing in demand for the bulk wholesale markets.

Needless to say, the impact on the lower demand led to a drop in the average selling price as well as a fall in overall sales volume. The total turnover for the quarter ended March 2020 was CA$11 million, compared to revenue of CA$21.9 million in the prior-year period. The company reported adjusted EBITDA margins of -51% as against 8% in the quarter ended December 2019.

But as a silver lining to the dropping revenues, the company claimed that it expects the procurement costs for inventory and the overall cost of goods sold to fall. MediPharm has a relatively strong cash position, with a CA$21.4 million outstanding cash and cash equivalents on March 31, 2020. 

Additionally, the pharma-grade cannabis products manufacturer secured a private placement on June 8, 2020. The placement value was CA$37.8 million, of which one-half of the proceeds have been recognized and the other half is held in escrow. The balance is subject to realization upon completion of certain specified conditions.

MediPharm enters into supply agreements to ramp up Q2 sales

MediPharm Labs Corp: Why did this Hemp Stock Fall Last Week?

Even after a poor earnings release, MediPharm can still resurface in the post-COVID economy. According to a press release on June 19, MediPharm’s subsidiary in Australia bagged a deal to distribute cannabis oil products to Beacon Medical Australia Pty. Ltd.

Beacon Medical is a subsidiary of Vivo Cannabis Inc. (TSX: VIVO)(OTCQX: VVCIF) – another cannabis-based hemp stock. MediPharm has already shipped 35,000 units of finished products and bulk extracts to its GMP certified Australian subsidiary.

In addition to Beacon Medical, MediPharm also entered into supply agreements with Compass Clinics and Burleigh Heads Cannabis in Australia, Cannasouth Plant Research, and Helius Therapeutics in New Zealand, as well as Therismos Limited in the UK. Although the sales were expected to kick off in Q2 2020, it is bound to gain more momentum in the third quarter of this year.

MediPharm Labs Corp: Why did this Hemp Stock Fall Last Week?

About Cannin: Your Marijuana and Hemp Stock Experts

About Cannin: Your Marijuana Stock Investment is your #1 resource marijuana and hemp stock investment opportunities. Our global team of experts evaluates all emerging marijuana and hemp stock investing opportunities. We aggregate hundreds of hours of research on the best marijuana and hemp stock investments for 2020. 

Use as your resource for breaking cannabis and hemp investing news, featured cannabis and hemp company analysis, comprehensive cannabis and hemp stock reports, or get your free trial now and use our Smart Stock Algorithm to take the guesswork out of profiting from the cannabis industry. Is it too late to invest in marijuana stocks? No! This is the perfect time to invest.

Market analysts expect the marijuana and hemp industry will have an annual value exceeding $75 Billion in the next decade. The time to invest in marijuana and hemp stocks is now. Are you looking to buy stock in hemp companies or marijuana companies for 2020? Interested in emerging penny hemp stock companies? Looking for the best Canadian marijuana stocks to invest in? We can help.

Predict price movements of marijuana and hemp stocks several hours in advance with our proprietary algorithmic stock trading software.

Profit from the best marijuana stocks – we’ll show you how at

Leverage the power of algorithmic stock trading.

+25% Gains in 2019

+49.8% Gains in 2020

Backtested since 2012

We’re so confident you’ll love our signals, we’re willing to give you a one-month risk-free trial to see it for yourself.