Bright futureHello everyone, here is my personal opinion about the company after attending the meeting and talking to the CFO and COO. Also, here are some pictures that i took of the grow rooms.
https://imgur.com/a/ApcZA
https://imgur.com/a/OQYdY
https://imgur.com/a/Mt7DV
First of all, i am completely happy that we have a new maangment and CEO (Larry) and how the previous one was shown the door. My understanding is that so when the new managment took over, everything was a mess from financials to the fact that the Abbe Medix facility is not close to be completed as it was mentioned and advertised before. This might be one of the reasons why the share price is lower than other competitiors who dont even have their cultivation licence (mmj). The image/reputation of the managment was damaged.
Canada House Wellness has been focusing on building its patient base (MTF) rather than build those state of art facilities to produce as much cannabis as they can. This is actually great because whats the point of being able to produce so much cannabis as you can if can't really sell it. To be honest, i dont think we can even compete against companies like WEED, APH or ACB due to their low cost production. That's why having our own patient base is a huge advantage for us. Currently, those patients are being referred to other LP's and we get certain percentage back in royalty fees. However, once Abba Medix become LP, we will have those patients buy our products instead of other LP. As i understood, the recreational market is not a major target because apparently, with Abba Medix operating at full capacity, it will not even be enought to cover all the demand from MTF.
I asked a question during the meeting about how the managment is going to start marketing their products/company because not so many people are familiar with CHV. Railey said this is something that they are certainly well aware of and will be working towards improving it. Also, there was discussions about Knalysis and how it has so much data points which is also going to be play important role in company.
Overall, i feel that the new managment approach is to under promise and over deliver. There is defineitly a huge potential over here, especially with the fact that they already have over 10K registered patients. Once legalization kicks in, the hard part is be able to grab onto the market share and that's will be extremely difficult against companies that spends millions of dollars on marketing. Having our patients registered, is kind of a gurantee that we will be able to bring revenes in.
This is going to be the first time that i actually break my portfolio rule and increase my position in one company to up to 90%. I just really hope that the managmnet are serious about what they were saying and are not just good speakers.
Good luck to everyone, cheers.