Westleaf: A Canadian hit in the making - Canaccord

Decibel Cannabis

17/07/2019 12:16

** Canaccord Genuity starts coverage on Canadian cannabis co
 WL.V  with "speculative buy" and price target of C$1.20 - a
160% upside to stock's closing price on Tuesday
    ** In a note titled "A Canadian hit in the making",
Canaccord says WL uniquely positioned to benefit from being a
retailer with cultivation and extraction facilities
    ** Says the advantage of retail could lead to further
investments by licensed cannabis producers
    ** Brokerage expects co's 65,000 kg/year cannabis extraction
facility to receive licenses by end-Q3, in time for the launch
of edibles and vape products expected later this year
    ** "Although we are cautious that the market could be fully
supplied by 2020, we believe Westleaf will be able to
successfully market its premium dried cannabis products through
retail channels" - brokerage
    ** Says co is fully financed to execute on vertical
integration strategy and estimates that WL will start generating
free cash flow by 2021
    ** Up to Tuesday's close, stock had fallen ~16% this year

 (Reporting by Debroop Roy in Bengaluru)
 ((Reuters Messaging:
debroop.roy.thomsonreuters.com@reuters.net))