Post by
Oldweed on Mar 25, 2021 1:30pm
My perspective on LP being seen as a proxy play for US
MSO's currently have an advantage in the USA as LP's are locked out of the THC game, however that does not nescasarily mean they are at a disadvantage. I have noticed two definitive paths taken by our Canadian LP's. APHA has efficient scalabilty and has partnered with TLRY to create a GMP certified European behemoth. and they are laying the pathway for CBD branding in the USA that will be quickly convertd into THC rollout when the time comes. The key here is efficiency in vertical operations both internationaly and domesticll. CGC has taken a different approach as they have focused greatly on USA expansion 1st and European 2nd. That being said they have taken on an asset light approach to right the ship and prepare for THC/CBD branding through ACRG and celebraties using the established agriculture in the USA as there growing partners. Both companies have righte their ships in different approaches and there will definately be room for both to floorish. Now MSO's are very attractive and they have impressive sales but there is a uge risk that each must overcome in the near future o succeed. They too will have to right there ships when full legalization comes in and they will have to do it at the same time our Canadian LP's will be moving in on the market! Boris over at CURA stated himself he wants to get out of the vertical integration as soon as legally possible, in other words they will have to restructure theier entire business model. It will be painful and costly and like a mentioned earlier it will happen at the same time as APHA and CGC will be establishing themselves. I believe it is at this time we will see some very exciting megers take place between our two countries. There is no way of predicting where but there are some similarities between some of the players, for example APHA and CL are very CPG focused and would dominate in the west, CGC and TRUL would be a branding behemoth and huge east coast market share and CURA and ACB would be a national monster if ACB were to do a chapter 11 and re emerge with a share count CURA could work with. Whatever the teams they will be big and they will be bold and the biggest unknown factors are which big whales will be the newcomers in the space that could change any companies direction! An incrdeible opportunity for everyone who is will to play the long game. Just my thoughts on this crazy market!
Comment by
ilvmyt5s on Mar 25, 2021 2:05pm
Tilray will be domiciled in Delaware.