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Mackie Research has initiated coverage on ICC Intl Cannabis (TSX: ICC)

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Analyst Neal Gilmer gives the company a speculative buy rating and a 12 month target price of $2.10, a premium of 162% to the $0.80 price on December 21st, the day the report was issued.

Additional Information:

Company: ICC International Cannabis
Website: http://www.intcannabiscorp.com
Stock Symbol: TSX: ICC
Date Published: Jan 10, 2017
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch media

Today’s buy recommendation comes from Mackie Research.

Mackie Research has initiated coverage on ICC International Cannabis Corp. (TSX:ICC).

Analyst Neal Gilmer gives the company a speculative buy rating and a 12 month target price of $2.10, a premium of 162% to the $0.80 price on December 21st, the day the report was issued.

ICC is the first integrated cannabis producer in South America with an opportunity to supply not only the recently legal recreational market in Uruguay, but is also strategically positioned to penetrate the local medicinal cannabis extract markets.

The company has a license to produce and sell up to a guaranteed 2 tonnes in its first year of operations, and has built a facility that can produce five times that amount.

ICC is one of only two companies licensed to produce and sell recreational cannabis in Uruguay.

With an estimated 26.5 tonne market, there is plenty of growth opportunity for the company.

The government is expected to expand the production license and ramp the available supply to the 1,200 pharmacies across the country as it continues to roll out its legal market.

The company is ideally positioned to capture the cannabinoid extracts and by-products for medicinal uses market in South America.

The Mercosur trade agreement uniquely positions the company to export to those countries that have moved towards various levels of legalization.

Brazil, with a population of more than 200 million people, recently legalized the import of CBD oil for medical purposes, as did Argentina.

With a competitive labour cost and limited electricity costs the company is expected to be a low-cost producer.

The Mackie report suggests that current costs of production for recreational cannabis is about $0.60 per gram but could scale down towards approximately $0.45 per gram as the company scales production in its newly constructed greenhouse.

Analyst Neal Gilmer stated: “We believe that the company is well positioned heading into 2017, with many de-risking events that will unlock shareholder value. In the near-term, we expect the recreational market to begin sales by February, the medicinal extracts first harvest and processing in April 2017 with first sales in June 2017.”

ICC began trading at the end of November, following the closing of a qualifying transaction with Capital Pool Company, Shogun Capital.

The company currently trades at $0.97, well below the $2.10 target price, and with 112.2 million shares outstanding, the company is capitalized at $109 million.

For more information, please visit the company’s website www.intcannabiscorp.com, contact Guillermo Delmonte, CEO, at 598-2900-0000 (this is correct) or email ir@intcannabiscorp.com.

For more information about Mackie Research or to obtain a copy of this extensive research report contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com.
I’m Samantha Deutscher for Investmentpitch media