RE:RE:RE:RE:Record Sales I think Langley is 7mil bottles/yr - max capacity.
but I think max capacity is somewhat irrelevant - you have to sell it to grow it. Lots of 500k kg grow facilities that have no where to sell all that flower.
after beena was on boarded I had a convo with IR and it sounded like they were going to grow at max capacity, trim that cost/g and go for it. All excess they were going to just hammer the wholesale market - what didn't get sold into rec market.
something quickly changed (I think wholesale market isn't that amenable to selling all your flower) and (trimming costs and becoming ebita positive and conserving cash became a factor) - and they moved to a traditional CPG model - "produce what you can sell"
(hence inventory write downs)
Obviously the assets are way under-utilized - and even at this run rate we are obviously not showing the market cap compared to peers.
prev qs had 67000 plants? At 80g/plant flower - I think financials from q1 showed 32000 plants on grow. So they trimmed their grow by about half.
It seems like this model would probably leave some revenues on the table - missing potential sales when they under-grow or under-produce. But the trade off is profitability.
so given the 20mil in cash remaining and bank debt - they have no choice.
the terrible market cap is a function of the technical stuff that happened because of the convertible deal, getting kicked out the index and being forced to run the ATM (Full tilt in October, 1/2 max November) all at the same time.
Soaked up any buying, and some longs giving up for other opportunities including MMCap sale. maybe some tax loss selling too.
I'm not a psychic but I believe supreme has some competitive advantages that should make them a top 10/5 player in the sector. When they realize that value is anyone's guess. But quarter over quarter improvements and hitting those ebita targets (2 then 4 then 6mil) is a start.
Pedal2themetal7 wrote: Langley facility expected oil bottling 1,000,000 bottles per year
Langley facility expected vape cartriges 1,500,000 per year
Kincardine expected packaging 48,000 containers per day
Kincardine expected cultivation 50,000 kg per year
Sorry I experienced a technical glitch, the above noted is what I'm interested about. Since the restructuring began different numbers have been presented, and it was suggested the company would be producing product they are capable of selling.
Investors have been waiting for a very long time for this company to produce at full capacity, their site support the above figures as expected performance.
As an investor it would be valuable information to know if they believe the above noted can be achived, I don't need guidance but some information supporting the proposed expected figures. Why are they only at this meager level, is it a production, distribution, management issue!!!!
On paper this company should be with at a much higher MC and SP, the above noted figureS support this company being competitive with the likes of organigram!!!! and they could acheive the above could surpass Organigram.
If the management team is so experienced and efficient, why are we sitting at .16.
Q2 should be interesting. IMHO