Chalice Brands Ltd CHALF

RE:RE:Revenues

[doobiebaby]

DeeperValue, I like the butterly analogy.  This company is transforming from what it was into what it will be.  Don's strategy was good I think, but he was used to running a big company and I think got ahead of himself in terms of projects and spending and did not manage working capital as tightly as he probably should have (he also got screwed over by government intervention and other issues which were beyond his control).  So the company unfortunately started to bleed cash and dilution was called upon at levels that should probably not have occurred at that stage.

That said, Don is responsible for this company at least getting to the chrysalis stage.  He brought in Chalice and Simpson which was a transformative move.  They almost got JuJu, but alas there is no cash for that given the other projects.  People are mad at Don because of the dilution and the years of this stock being dead money.  But the fact remains that Don locked in Chalice and Simpson and with that laid the foundation for tranformative change.  His strategy was excellent and that strategy should now pay dividends if they can expand from the foundation they have cobbled together.  To do this they will have to execute better than in the past and keep a close eye on their dollars and cents.  I think this is where Simpson will excel.  His work leading Chalice shows that he can manage expenses effectively and that he knows the cannabis industry extremely well.

The interesting thing about this moulting stage is that it might have already occurred to a degree.  With Chalice and BMF they don't need to reinvent the wheel.  They already have most of the blocks in place.  They simply need to take what they are doing on a small scale and scale it up.  Other Canadian LPs need to get the extraction knowledge, dispensary knowledge, wholesale buying knowledge, branding and other operations that GLH is already doing on a day to day basis.  So I think it could be argued that the vast majority of Canadian LPs actually have more moulting to do than GLH because I think GLH might already have come out of the chrysalis and may be opening its wings to let the sun dry them in preparation for the first flight.  

I used to be concerned that GLH would not be able to secure enough working capital to take flight.  With the Canadian license I am no longer worried about this and think this sucker will take flight sooner than later.  And I don't think this thing came out a moth instead of a butterfly.  With Simpson at the helm I think it is a butterfly capable of doing what a Monarch can.  It can fly from Canada through the States and into Mexico to winter.  Who knows, maybe it can even fly to Europe one of these days.  Either way I am holding my million shares and am excited about seeing this butterfly go as fast and far as it can.

And this will be highly controversial, but I think it is time to give Don his due.  Sure there was short term pain and many investors lost patience, faith and money.  But the long term looks amazing and Don is primarily responsible for GLH sitting in the position it is with its wings extended and drying out in prep for an amazing journey.  So I think it is time to acknowledge Don's long term strategy and efforts.  He may not be the one who gets to pilot the flight, but he designed it and should get credit to a significant degree for the potential this company has.  So I thank Don for crawling on the ground like a caterpillar and doing the hard work and taking the blows and getting us to the butterfly stage.  I hope he is holding shares and makes a piss pot of money for his efforts.  I think he deserves it.  Be well.