RE:Conference call Method - Regarding the highlighted below, I heard the same figure (could have been 64%) but that margin is based on overall average. I great news is I see that margin rapidly growing as they sell more and more retail product and less and less of the wholesale. The selling prices for the two are drastically different and if a greater portion of the product they sell is in retail, that margin can only get better and better.
This would mean they need to sell less dollar value to achieve profitability if their revnue is moslty CPG.
Method wrote: Some key highlights:
- They said they were 3% market share in July in Ontario, BC and Alberta (if I heard that right). I think those three provinces are around $150m in sales/month so for a quarter that would be $13.5m in sales from those three provinces.
- not surprisingly based on the above they also said that rec sales will grow sequentially from Q4 to Q1.
- incremental cash gross margin was 66% (if I heard that right). A significant amount of new sales should drop to the EBITDA line.
- they also expressed confidence in being able to hurdle the EBITDA minimums set in the credit agreement which is encouraging. The threshold for Dec'21 is $2m for example.