Impression Healthcare Limited (ASX: IHL), the mouthguard maker has become serious about becoming a pot stock. For that reason, it has started the lengthy process of applying for local cannabis licenses.
After the news regarding the Marijuana stock performance of 127 percent to 3.4c, it has attracted many starved investors. Impression has applied for the license in order to import, store, distribute and export medicinal Cannabis products. The license is applied to Victoria Department of Health and the Office of Drug Control (ODC). At present it is reported that ODC is working with eight month old backlog applications. Impression who is considered best for anti-snoring mouth guards, has entered into an agreement with the US cannabis researcher AXIM Biotechnologies to act as a local distributor for them.
AXIM is a $US114 million company that trades over-the-counter in the US. The company develops a wide variety of cannabis-based products which also includes its flagship chewing gums MedChew Rx that is designed to treat patients having symptoms of Multiple Sclerosis and CanChew RL which is used to treat restless leg syndrome.
Impression is planning to sell AXIM’s medical products in Australia under the Special Access Schemes and through the Authorized Prescriber Network. They are hopeful by March 2019 they would be getting licenses and extra security at their Melbourne factory.
For the year ended 2018, the company made a net loss of $2,947,991 million. The total assets of the company was $707,857 and total liabilities of $1,091,175. As a result, the company has net liabilities worth $383,318. The company is not in a position to clear long term obligations. The total current asset of the company is $539,113 and total current liabilities $1,091,175. This shows that company is not is a position to clear even short term obligations. There is net deficiency in the shareholders equity. The net cash used in the operating activities was $2,851,020 where the major cash outflow was due to the payment made to the suppliers and the employees worth $4,143,833. The company made payment for plant, property and equipment worth $47,600 as a result, the net cash used in the investing activities worth $47,600. The company has made a debt repayment of $200,000. It generated an amount of $2,820,115 from the share which they issued after netting of the cost. The net cash from the financing activities is $2,620,115. The company reported a net decrease in the cash and cash equivalent of $278,505. The net cash and cash equivalent at the end of the year was $228,406.
The market price of the share traded at A$0.022 with market capitalization of A$5.16 million as at October 24, 2018.
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