GREY:CVHIF - Post by User
Post by
brentski99on Feb 12, 2019 2:18pm
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Post# 29354173
ADD TO THAT A 20% EBITBA RATE.........
ADD TO THAT A 20% EBITBA RATE.........Then you can really start to salivate. No wonder Chris Heath changed the direction of the company. This business is not just hype but is based on a solid business model that has been used in other industries successfully in the past. Add to that mix vertical integration which will increase profit and ensure supply.
Compare this to the Canadian Cannabis model since it has been legalized and you can see why the Canadian companies are high tailing it down to the states as fast as they can. Legalized stores are already closing as they suffer from shortage of product, low margins and burgeoning unlicensed competion which has much lower costs overall. This is what happens when government has their hand in every facit of your business. In Canada you are forced to buy from government authorized suppliers so they can get a cut. Over regulation leaves from what I have been reading is a 10% gross margin to cover all expenses. That is a joke. Medical MJ I have been told has much higher margins especially in the USA.