MYM Nutraceuticals Inc (OTCMKTS:MYMMF) On The Comeback Trail

Having seen its value attain a one year high of $3.76, MYM Nutraceuticals Inc (OTCMKTS:MYMMF) is now experiencing some worrying times.Since it peaked in December, it has lost more than 40% of its value and the market is still at a loss as to the cause of this dramatic fall.Take a look at the stock’s price action: MYMMF Daily ChartCompany OverviewMYM Nutraceuticals Inc. is a development firm which has plans to acquire licenses from Health Canada permitting the sale and production of topical products and high-level organic medicinal cannabis complements. The firm is currently undertaking two production projects in Quebec which have been projected to possess over 1.5 million square feet of production space.MYM Nutraceuticals is also an affiliate of a 1.2 million square foot production project being carried out in New South Wales, Australia.The Australian market has been identified as underdeveloped while its market has become lucrative aided by the news that medical cannabis has recently been legalized. To guarantee a robust presence and development potential for the sector, the company is keenly pursuing opportunities to acquire associated assets and businesses in the CBD, nutraceuticals and technology sectors. The firm’s shares are currently traded in USA, Germany, and Canada.For further information on the company, take a look at our previous post here.Recent DevelopmentsVery recently, the firm announced that it had completed its non-brokered private placement of 0.5 million units at a price of $2.25 for each unit, raking in proceeds of $1.2 million from the placement. Initially, insiders had subscribed to a hundred thousand units for worth $0.23 million. As a result of this, the private placement was classified a transaction between related parties and treated as such in line with GAAP and as defined under Multilateral Instrument 61-101. The deal is to be excluded from the minority shareholder approval requirements and formal valuation of MI 61-101 as the total worth of the shares as well as proceed arising did not exceed 25% of the firm’s market capitalization. Also, no commission fees were paid or charged during the placement.Each unit as referred to in the placement comprises of one transferable share purchase warrant and one common share, with each share warrant convertible into an additional common share at a price of $3.25 within the next two years. In special situations, the warrants may be subjected to acceleration.The firm explained that it plans to use the proceeds from the private placement to boost its general working capital and corporate purposes.Very recently the firm confirmed that it had completed the purchase of assets from Budly Software Inc. assets, a prominent software development firm which has set up a sales and distribution system supported by and connects medicinal cannabis patients with drivers who can quickly deliver while they monitor their orders. Through the system, a customer can pick a pharmacy of their choice, make a request and decide the driver who is to deliver it. The client will also be capable of tracking the order on their device and stay updated on the when it will arrive.As stated in the letter of intent, MYM Nutraceuticals is to acquire Budly for $1.8 million which is payable in 0.8 million common shares to Budly while receiving all non-U.S. privileges to Budly's intellectual property and software.The firm has continued its negotiations for the acquisition of other related assets and businesses within the CBD nutraceutical sector and legal Cannabis industry while also in talks with other innovative firms. Financial PerformanceFor 2017, the firm reported revenues of $0.1 million, bucking a trend of no revenues for the past few years. It is projected that in years to come, the firm will move out of this growth phase and generate larger revenues from the sale of its products and services.In the same period, operating expenses rose by 68%, a likely outcome of the increase in activity and the new revenues generated. The drop in operating loss indicated that the firm is on a journey towards full operational efficiency. It should be noted that it is a regular trend for developing companies to be unable to generate revenues while still incurring costs in the growth years.Net loss for the year was $0.67 million, a drop from the prior year loss of $0.8 million. This was no doubt as a result of the income generated in the year.The statement of financial position reveals that the firm is not highly geared. On its books, its total debt is worth just $0.15 million, resulting in a low debt-to-equity ratio of 0.13. It also has a very high liquidity ratio of 3.25. ConclusionThe firm has remained on a good path and the dip in its value is more likely than not to be only temporary.We will be updating our subscribers as soon as we know more. For the latest updates on MYMMF, sign up below!Disclosure: We have no position in MYMMF and have not been compensated for this article.