RE:RE:RE:RE:RE:Inventory write down??? CBD legalization in Europe may speed up Stada launch....
November, 24 2020 - Sativa Wellness Group Inc. (CSE: SWEL) wishes to announce that following the European Court of Justice (the "ECJ") has ruled that cannabidiol ("CBD") is not a classified as a narcotic drug. The Company is on track for the submission deadline in March 2021 to the UK FSA Novel Foods Accreditation, which should now be an easy transition to the European FSA Novel Foods accreditation.
The ECJ ruling provides that CBD is not classified as a narcotic drug, and that the French ban on hemp derived CBD contradicts European Union ("EU") law. This decision opens the door for high quality, compliant CBD companies to operate in markets across the EU. Sativa Wellness welcomes this news as the Company operates CBD extraction and production facilities and markets, distributes and sells CBD products throughout the UK and the EU.
Lemoyne wrote: Write down = revenue loss, in this case because the market prices are going down. There is no positive way to turn this. This is a consequence of immature market where prices are changing so much a write down has to be taken.
There are still write downs possible (i would say more than likely), but hopefully, intl growth will gobble up most of the inventory LABS stocks.
I do think it really boils down to stada shipments. If those shipments are significant in volume and unit price, write downs might not occur. That is exactly where LABS could differentiate itself from competitors.
LABS is ahead of the curve with STADA. APHA news release today underlines the necessity of local solid partner to promote products. LABS and STADA have been at it for months while APHA is just starting with its partner. STADA shipments could easily be multiple tens of thousands of units. There are 20k pharmacies in germany. Shipping to 10% of that already means more retail footprint than the whole of canada.