RE:Contacted Investor RelationsFor 2020 Mackie forecast revenues of $82 million and Alta forecasts revenues of $119 million. Assuming the 150,000 kg/yr capacity is at full utilization gives a per gram revenue of $0.55 to $0.79. Neptune has been mentioned $0.50 per gram as a conservative estimate.
RockMaschine wrote: And asked about the recent deals trying to get an idea of the potential value. I was told costs to the supplier are about $1.15-2.50 per gram of input to Valens! That is some amazing margin right there. I was also forwarded the AltaCorp Capital coverage document which details the great potential.
Regarding margins, as quoted from the piece.
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EBITDA margins are amongst the highest in the sector: We forecast that Valens will generate one of the most attractive EBITDA margin profiles we have seen in the sector, with margins of 47% in F2019, 58% in F2020, 52% by F2021E. In addition, the Company’s business model requires relatively low capital investment in comparison those of most vertically integrated cannabis producers, allowing them to generate meaningful free cash flows by F2020.