NEW YORK, NY / ACCESSWIRE / July 26, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has initiated coverage on Alternate Health Corp. (OTCQB: AHGIF, CSE: AHG, “Alternate Health”) with a 12-month price target of US $4.65 / CAD $5.89.
The report is available here: AHG Initiation Report.
Based in Plano, TX, with offices in San Antonio, Toronto, and Los Angeles, Alternate Health offers a range of solutions for the medical cannabis community, including technology and compliance software, laboratory services, continuing education programs and an emerging life sciences portfolio. Alternate Health is led by an impressive team of executives and advisors, including CEO Dr. Jamison Feramisco, Chairman Dr. Michael Murphy, and Director General Wesley Cark, which should position the company well to identify and execute on future opportunities for growth in the rapidly growing medical cannabis industry. (Full management bios are included at the end of this report). In our view, Alternate Health stands apart in the medical cannabis space in that it offers both considerable upside from exposure to this high growth new sector, as well as a stable base of revenues and impressive adjusted profit from its laboratory testing unit. We see several potential catalysts for the company ahead as it establishes initial revenues for its technology and continuing education solutions, and looks to begin commercialization of its CBD delivery systems in the second half of the year.
Alternate Health supported by stable lab revenues, cash flow
Unlike many public companies in the cannabis space, Alternate Health is supported by an established, profitable revenue stream coming from its San Antonio-based laboratory subsidiary, which specializes in providing toxicology, blood, and pharmacogenetic testing services. Alternate Health Labs is an independent clinical lab with over 20 lab technicians and support staff, which management believes has the potential to process up to 150,000 specimens per month with limited additional capital expenditures. The business is currently profitable, and was responsible for approximately $3.7mn in 1Q17, with management commenting to investors that the unit was operating ahead of expectations. We expect Alternate Health to seek to grow this business by expanding its referral sales network and increasing its capacity utilization over time. The laboratory business is also viewed as a strategic asset in establishing relationships with doctors, patients, and service providers, while also providing cash flow to invest in developing a portfolio of technology and life sciences solutions for medical cannabis.
CanaCard, VIP Patient lead suite of technology solutions
Alternate Health’s technology solutions are anchored by the VIP Patient? Health Record Management System and the CanaCard Patient Management System. VIP Patient? is a fully integrated cloud-based electronic medical records system. CanaCard is a proprietary software platform that is specifically tailored for the controlled substance space for practice management. It interfaces between doctor, patient, dispensary and licensed producer. Sales activity has begun for these solutions, and Alternate Health expects to report initial revenues in 2017.
Initiate coverage with 12-month price target of $4.65
We initiate coverage of Alternate Health with a price target of US $4.65 / CAD $5.89. We see Alternate Health as a highly differentiated conduit for the medical cannabis space given its strong management team and already self-sustaining lab business model, with significant upside potential from new technology and life sciences programs in medical cannabis.
Please review important disclosures on our website at www.seethruequity.com.
About Alternate Health Corp.
Alternate Health Corp. (CSE:AHG, OTCQB:AHGIF) is an international medical cannabis company that uses best in class technology, research, education, production, and laboratories to increase the awareness, regulatory compliance, and appropriate usage of cannabinoids in modern medical practices. The company is strategically positioned in all facets of the medical cannabis value chain through the innovative integration of proprietary technology and know-how, acquisitions and partnerships, deep direct knowledge of and experience with improving patient outcomes, and management expertise.
Alternate Health is well positioned to reinvest internal operating cash flow in its platform over the long term, creating an attractive investment profile for its shareholders. The company is headquartered in the Dallas-Fort Worth Metroplex with operations in Los Angeles, San Antonio and Toronto. www.alternatehealth.ca
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