GREY:INSHF - Post by User
Comment by
mtd121215on Jan 04, 2019 8:22am
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Post# 29185230
RE:Canabalizing themselves
RE:Canabalizing themselvesThe numbers here can't be considered anywhere near accurate but I can see the logic.
Franchising = Less revenue
AND
Franchsie = faster expansion, low CAPEX and faster store front brand awareness.
Like most things in life, you will get out what you put in. ISH isn't putting up a lot of money to get this started, and it is expected that the amount of return on investment will be reflected in this.
Franchising was an attractive approach when ISH had first mover advantage along with few other retailers. That is now gone because of the provincial regulations.
The only thing you are buying when you buy ISH is a store frotn brand that no body really cares about yet.....think of how less they will care when their are other retailers with better stores backed by strong investment money. $2.5 Mil from Tilray is not a vote of confidence....just Tilray putting their hand in every cookie jar.
Although I do not agree with many of the numbers being mentioned in your post, I will have to agree, it was brilliant to push the SP up above what it's worth.
Even if an MSO looks to acquire ISH, it will only be for it's name.