Health Care
Epsilon Healthcare Limited (EPN)
Epsilon Healthcare Limited (EPN) was an Australian pharmaceutical company primarily engaged in the cultivation, manufacturing, and distribution of medicinal cannabis products, focusing on B2B and white-label services. Operating a TGA-licensed facility in Southport, Queensland, the company aimed to supply both domestic and international markets. However, the company faced significant financial challenges, leading to its delisting from the ASX on 1 March 2024 following administration.
Market Cap
A$11M
Shares on Issue
N/A
Price Chart
AI Analysis
Prior to its delisting, Epsilon Healthcare's business position was characterised by its significant investment in a large-scale medicinal cannabis manufacturing facility and a strategy to become a key B2B supplier. Despite its infrastructure, the company struggled with high operational costs, a competitive market, and challenges in securing sufficient profitable supply agreements, resulting in persistent cash burn and financial distress. Its market capitalisation of A$11M reflected its micro-cap status and the inherent risks associated with early-stage biotech ventures.
The growth outlook for Epsilon Healthcare as a publicly listed entity is now non-existent due to its delisting and administration. Any 'strategic direction' or 'upcoming catalysts' would now be entirely focused on the winding-up process, potential asset sales by administrators, and the resolution of creditor claims, rather than any investment-related growth or operational catalysts for shareholders. Its future, if any, would be under entirely new ownership and structure, not as a publicly traded company on the ASX.
Bull Case
- • Significant growth potential in the global medicinal cannabis market, potentially increasing demand for its B2B manufacturing services.
- • Leveraging its TGA-licensed, large-scale manufacturing facility to secure high-volume, long-term supply agreements with leading cannabis brands.
- • Potential for new product development, expansion into higher-margin product categories, or strategic partnerships to enhance revenue streams.
Bear Case
- • Intense competition, regulatory hurdles, and price compression in the medicinal cannabis sector leading to unsustainable margins and cash burn.
- • Difficulty in securing and maintaining profitable supply contracts, coupled with high operational expenses for its manufacturing facility.
- • The ultimate outcome of financial distress, administration, and subsequent delisting from the ASX, resulting in significant loss for shareholders.
Market Sentiment
Based on 1 social post
Recent mentions
Introduction to Epsilon Healthcare Limited
Recent Announcements
Epsilon Pharma signs manufacturing agreement with Puro NZ
🚨 Price SensitiveEpsilon Pharma has entered a strategic partnership with Puro NZ to secure its pharmaceutical production capabilities, as detailed in their latest progress report.
Epsilon Healthcare Awarded Halal Australia Certification
Quarterly Activities/Appendix 4C Cash Flow Report
🚨 Price SensitiveElectra Property Trust (EPN) has released its quarterly cash flow report, detailing commitments and financial activities for investors to review.
Change of Director's Interest Notice - Zoe Hutchings
FAQs
What does EPN do?
Epsilon Healthcare Limited was primarily involved in the manufacturing and distribution of medicinal cannabis products for the B2B market in Australia, leveraging its TGA-licensed facility in Queensland. However, the company was delisted from the ASX in March 2024 after entering administration.
Is EPN a good investment?
As Epsilon Healthcare Limited (EPN) has been delisted from the ASX following its entry into administration, it is no longer an investable company on the public market. Prior to its delisting, it was a highly speculative investment due to its micro-cap status, significant cash burn, and the inherent risks of the nascent medicinal cannabis sector.
What drives EPN's share price?
Prior to its delisting, EPN's share price was primarily driven by news related to its financial viability, securing new supply agreements, regulatory approvals for cannabis products, capital raising efforts, and the broader sentiment towards the medicinal cannabis sector. Ultimately, its inability to achieve profitability and manage debt led to its cessation of trading.
Key Metrics
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