Post by
Bluechip7654331 on May 14, 2019 1:06pm
Sunniva Update
A little bit of misinformation floating around. Trulieve actually has over 110 million equity shares once they are all released for trading. The lawsuit is baseless and nonmaterial, super risky short play if the Canadian asset sale hits a PR shortly, which is anticipated.
- Q1 financials are scheduled for release on May29th at the latest. The revenue guidance was $14 million CDN and it was re-affirmed after the quarter ended, so that is in the books. This places Sunniva in 8th place amongst Canadian LP's and alonside Acreage within striking distance of other large MSO companies in the US.
- word from Harborside is that Sunniva is the top seller with the Sunfire and Kyndness brands, as well they are sold out at Mankind. So definitely, whatever Sunniva can package and brand is being swallowed up. The recent acquisitions to grow their distribution and packaging will help expand into other dispensaries. Sunniva looks to be clearly on track to reach $20 million revenue for Q2.
- not talked about much are the bottom line numbers. With the drag of the Okanagan development behind them ($25m in 2018), their 2019 operating cash flows will be a lot stronger, with the sale of both Okanagan ($10-20m and NHS $40-80 million), they look to be in very good shape in 2019. Seeing margins of 40-50% prior to growing any cannabis is unprecedented.
- the recent upgrades to the Glasshouse design ($20m air conditioning, $15m lighting and temp control) guarantees Sunniva will have the most effcient and cost effective facility for growing cannabis in the US and likely on the planet. These things take forever to build, but finally the contractors have given a hard date of the beginning of July for completion. Picture having this green machine for 2 years ahead of anyone else, the damage one could do to eroding everyone's market share. At 0.50 cents/gram cultivation costs ($1.15 taxes,overhead incl.), imagine the margins for the ultra premium brands.
- Sunniva, having brought in some of the best grey market producers/farmers for the initial brand launches and with their super low cost/high quality products upcoming, can compete and win even against the existing black market in California. The collaborative approach in California guarantees Sunniva bountiful supply bases to expand across the entire state and quickly. Win California and you will be the dominant US cannabis company, so says Linton and i agree.
- its been a long road for longterm investors, or so it seems, but these wait times will be flipped over once the Glasshouse is operational and investors will have the luxury of waiting.. and waiting for others to catch up, while getting rich in the meantime.
Comment by
EFW5370 on May 14, 2019 1:43pm
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Comment by
Bluechip7654331 on May 14, 2019 2:01pm
No problem, remember to take into consideration testing all the equipment and systems which could take them through the summer. Whether they harvest in Q4 or not depends on a lot of little things coming together.
Comment by
EFW5370 on May 14, 2019 2:14pm
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