LastoftheFranks wrote: I understand heightened scrutiny of all cannabis co's.
There has been no shortage of other company pumps brought to this wall where said company "Just signed an amazing supply deal!" only to discover the company simply purchsed their supply, or new products "produced by Pepsi!" when really the product was packaged in an independant facility where Pepsi products are also packaged.
I've posted my thesis on this company here several times and still believe the manner in which they're setup they will become(is becoming) a gravitational black hole for outsourcing co's looking for supply, allowing said company to focus on branding.
In the Proactive Investor segment from a week or so ago Paul said he had several announcements upcoming. This was one of them. There should also be announcements of new brands the company is taking directly to market through their partnership program. Im assuming since those deals are direct to market through nextleaf's license data will be available.
I get the scrutiny on statements like "A large LP just cleared out our vaults". If you only had 5L of distilate in your vault then that not a whole lot of money. I give Paul the benefit of the doubt it's more. The fact this company doesn't pump every small accomplishment is more encouraging than concerning.
I know you all hate the term "Disruptive". However, currently if I want to sell a CBD product I need to get a Health Canada license and facility, get an extractor (3rd party CO2 extraction eats my margins, pushes up costs), find a supplier (cannabis/hemp/cpg equiment), distribution, marketing, and try to guage how much overhead I'll need since CO2 processing times require several weeks to fulfill large orders.
Now If I want to sell a CBD product I can design a brand, call Nextleaf and tell them my plan, focus on marketing and distribution, launch everything with product testing reassurance through their license domestically, export abroad since they're GMP certified, and pay less for distillate than if I had done it all myself while keeping overhead low thanks to the speed of their processing services. This is disruptive to the status quo.
The CBD/THC-O-Acetate are lotto tickets, if those find pharma interest then skys the limit. Even without them though consistant high growth is on the horizon. CBD will be in every item at GNC, nature bars, sports drinks, health products, etc. It's all gotta come from somewhere, and if they can boost efficiency by 50% as planned this year their margins will only get larger.