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Smaug's avatar

What are the other Canadian companies that "were willing to put in the work to get drugs approved in Canada" and doing the same playbook? Thank you so much.

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Evan's avatar

Great write-up. As a shareholder, I appreciate the less obscured view on knight. As you mentioned, knight's current iteration is really only since they acquired GBT in late 2019. So, it's effectively only been three years of operations under their management. I purchased my first tranche after the market sold off in covid and then built my position over 2021/22 in the low $5 range and recently added on at $4.60, so it may be easier for me to have a "long-term" view as it's only been a little over 2 years that I've held GUD.

Having said that, I think the valuation is very attractive (although that's been the case since day 1) and I think they are still going through growing pains of adding Exelon and integrating the 4 companies of GBT during the middle of covid. Now that is mostly behind GUD and we will see if they can fully execute without major restrictions. I was even thrown off recently with how much cash was going into working capital related to inventory purchases for Exelon, so they are still working through integrating the drug today.

Without being too long winded, I think there is a lot to be positive about today. The pipeline and sales are growing, the share count is shrinking, the float is also shrinking as major shareholders (Armoyan 12%, Goodman 22%, and another institution owns 10%) are buying large chunks of the company and there is a path to exit the funds and redirect that money to core operations. All while pessimism is at an all-time high. I'll give the team another 2 years.

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