What’s to like about ATTBF stock and CEO Mike Withrow?
If you have to pick just one word to sum up Abattis Bioceuticals and their relation to the marijuana stock sector, it is without a doubt — DIVERSIFICATION.
Mike Withrow isn’t simply trying to corner a niche market or throw out broad promises of “growing lots of cannabis” (as sadly many other companies seem to be doing). He’s attempting to build a well-diversified machine, capable of producing multiple revenue streams. Their business model is commonly referred to as “GDERS,” and stands for Grow – Dry – Extract – Refine – Science/Sell.
As with all companies attempting to capitalize on the cannabis space, the future of Abattis is dependent upon Health Canada granting the much coveted MMPR (Marihuana for Medical Purposes Regulations) license. It’s important to note that if all license applications come to fruition, Abattis isn’t looking at just one license to enable it to grow and distribute cannabis based products — it’s looking at several.
Yes, several of its subsidiaries have applied for the MMPR, including iJuana Cannabis Inc, as well as BioCell Labs Inc that will be utilizing the PurGenesis facility, and finally Experion, in which Abbatis’ Northern Vine owns a 25% stake. Northern Vine has also applied for a Controlled Substance License.
Here is a great visual that pieces together the many powerful components that ATTBF plans to integrate into a dominant force of the new cannabis industry . . . . . . . . . . .
Abattis isn’t just ahead of the game in terms of paving the way for multiple streams of income, but it’s also leading the way in the sector regarding transparency to its own stockholders. On July 15, ATTBF became the first marijuana stock to qualify for listing on the OTC Market’s prestigious OTCQX tier. The OTCQX achievement is often viewed as a stamp of approval for legitimate penny stocks, because it requires a higher quality of financial reporting. As such, many investors now view ATTBF as a safer investment than many other stocks listed on the OTCQB. This higher status is also commended as a substantial advancement toward being listed on the NASDAQ or NYSE, which opens the doors to a much larger base of investors and even stronger credibility.
Excessive dilution is also a common fear for any penny stock investor, but it’s been quite comforting to see that Mike Withrow seems intent on keeping dilution to a minimum. With slightly over 63 million shares outstanding, Mike has publicly stated that he does not plan to exceed 100 million shares at any point in the future. No doubt Abattis may find itself requiring additional capital down the road as it refines the business plans, and it’s nice to have a ceiling in mind.
What are some common Abattis criticisms?
There are three points of criticism that ATTBF skeptics tend to discuss, one of which will play the most *important* role in determining the fate of Abattis.
1. Although ATTBF has a business model involving multiple plans and potential streams of revenue, some believe this could actually prevent the company from focusing on developing the most profitable of their businesses. In other words, they worry that Abattis could become a jack-of-all-trades but master of none, and open the doors a little wider to competitors.
2. No major revenue streams at this time. As with any business, no matter how convincing or exciting the possibilties for the future may seem, it’s nothing but a “plan” until the money starts flowing in. Of course, this is the case with the majority of marijuana stocks and a substantial reason the entire sector is considered extremely risky.
3. Waiting on the license(s) — and this is the most important issue holding many investors back at the moment. Without the MMPR licenses being issued by Health Canada, Abattis is nothing more than a collection of subsidiaries with some very cool technology. CEO Mike Withrow’s commitment to assembling a Grade-A set of directors and scientists would suggest the company firmly believes that receiving the licenses isn’t some near hopeless daydream, but instead it is a highly anticipated event. Even so, governments and their approval processes are not known for being “timely.”