Shares of Medipharm Labs Corp (OTCMKTS:MEDIF) have started an interesting pullback phase that could lead to an opportunity for traders to take part in a subsequent trend continuation. However, amid this action, one must take note of the parabolic nature of the movement into this recent high. To further flesh out the story, the company just announced it has received Depository Trust Company (DTC) eligibility for its common shares in the United States. “DTC eligibility” simplifies the process of trading and transferring the company’s common shares between brokerages in the U.S.
According to the release, “DTC is a subsidiary of the Depository Trust & Clearing Corporation, a U.S. company that facilitates electronic trading in the United States. Securities that are considered “DTC eligible”, may be electronically cleared and settled through DTC. MediPharm Labs common shares are now eligible to be distributed, settled and serviced through DTC’s automated processes, providing greater efficiency and reduced costs as a result of the electronic method of clearing securities and accelerated settlement processes. Securities that are DTC eligible often experience increased trading volumes. In addition, DTC eligibility addresses the issue that many U.S. firms have that prohibit trading in shares that are not DTC eligible.”
Medipharm Labs Corp (OTCMKTS:MEDIF) bills itself as a company that primarily focuses on producing pharma-grade cannabis oil and concentrates in Canada. It also focuses on providing cannabis contract processing services to licensed producers and growers; supplying cannabis oil to companies for sale under its brand; and supplying raw materials and processing for the creation of ready-to-sell cannabis products. The company was founded in 2015 and is headquartered in Barrie, Canada.
Founded in 2015, MediPharm Labs has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation license.
This expert focus on cannabis concentrates from our cGMP (current Good Manufacturing Practices) and ISO standard clean rooms and critical environments laboratory, allows MediPharm Labs to produce purified, pharmaceutical-grade cannabis oil and concentrates for advanced derivative products. MediPharm Labs has invested in an expert, research-driven team, state-of-the-art technology, downstream extraction methodologies and purpose-built facilities to deliver pure, safe and precisely-dosed cannabis products to patients and consumers. MediPharm Labs’ private label program is a high margin business for the company, whereby it opportunistically procures dry cannabis flower and trim from its numerous product supply partners, to produce proprietary cannabis oil concentrate products for resale globally on a private label basis.
Through its subsidiary, MediPharm Labs Australia Pty. Ltd., MediPharm Labs has also completed its application process with the federal Office of Drug Control to extract and import medical cannabis products in Australia.
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As noted above, MEDIF just announced it has received Depository Trust Company (DTC) eligibility for its common shares in the United States. “DTC eligibility” simplifies the process of trading and transferring the company’s common shares between brokerages in the U.S.
Traders will note 61% tacked on to share pricing for the name in the past month. In addition, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running nearly 390% beyond what we have been seeing over the larger time frame.
“We are pleased that MediPharm Labs common shares are now considered to be “DTC Eligible”, to facilitate the trading of our common shares in the U.S. markets”, said Patrick McCutcheon, Chief Executive Officer, MediPharm Labs. “We will continue to pursue opportunities that enhance our value, liquidity and strengthen our shareholder base while improving accessibility for all U.S. investors and institutions, as well as global investors, to participate in the future growth of MediPharm Labs”.
Earning a current market cap value of $421.07M, MEDIF has nearly $5.9M in cash on the books, which must be weighed relative about $11.1M in total current liabilities. The company pulled in $10.2M in 2018. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $MEDIF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MEDIF, either long or short, and we have not been compensated for this article.