Aleafia Health Inc ALEAF

RE:RE:RE:RE:Raise money burn money

[ShakngMyHead00]

ShakngMyHead00 wrote:

sincitywizard wrote: I would argue that there are many barriers to entry.  Licensing, Certifications for Import/Export and Infrastructure are all huge barriers for any start-up in the Cannabis space.

You yourself keep posting and complaining about what you perceive as broken promises from management regarding the EU-GMP certification and how long it has taken to receive it. 

EU-GMP certification is a huge barrier to entry for companies that want access to Europe and their 750 million person market and provides a nice valuable moat for any company.

All US MSO's will need EU-GMP if they want to export to Europe. European companies have to meet these standards as well to sell in their own market. 

Every jurisdiction has different laws, rules, regulations, and licensing requirements that all take time and money to navigate.

Licensing for facilities is a barrier to entry.  Municipal, State/Provincial, and Federal governments all want their piece of the action.  In the USA, every state is different.  Some require vertical integration, (one company - seed to sale), there is no inter-state commerce, so you need cash and lots of it.  Another huge barrier to entry. 


Time, Money, Intellectual property, Data, Licensing, Certifications, Knowledge and Expertise are all variables that comprise various barriers to entry.  It would be so much easier for any large CPG company to just purchase a company like Aleafia once they have done all of the heavy lifting. 

Most countries start with legalizing medical cannabis first, and then they transition to recreational.  Aleafia through Emblem really focuses on this part of the equation and all of their data points and clinics are  very attractive assets that legitimizes them in a pharma way that is very attractive to big pharma companies that want to enter the space. 

And while weed is becomming commoditized, branding is key.  Which is why all cannabis companies are trying to create Brands that people love.  People pay for Brands.  Look at Curaleaf and their Select Brand as an example of what is becoming a nationwide national Brand in the USA.  Aleafia's Emblem Brand is perfect for the Medical Market.  Aleafia's Bogart's Kitchen is really growing on me as a Brand for edibles.  Dogwalkers is another great Brand Name.  So not having good Brands, will become a detriment to entry into markets as well.

So those are my thoughts... You can't have it both ways.  You can't complain about how long it is taking for EU-GMP in one breath, and in the other say there are no barriers to entry.  Of course, all barriers are overcome by cash.  Which is why undervalued Aleafia is a prime takeover candidate at this time.

The Wiz




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