RE:RE:RE:Which way to the bridge?
Hurricane, my crystal ball has yet to be perfected. I last spoke with Amy Schwalm (IR rep) about 6 weeks ago. She stated that the search for a beverage partner is ongoing and they continue to search for US expansion opportunity. She did not get more detailed than that.
Imo, cpg partner boats are in dry dock owing to current state of relative uncertainty in cannabis industry. Though the crystal ball is cloudy, I see every reason why Big tobacco, liquor, pharma, chocolate manufacturers, even chewing gum are potential suitors. From what I've read, cannabis companies have been filing patent applications to protect inventions that involve cannabis-laced face creams to medicines, chocolates and soft drinks (personally, I think OGI has a huge winner with their dissolvable drink mix powder). If patent protected products such as these are a hit with consumers, this makes a company more valuable, and a more attractive buyout target.
We're still early in the game and its messy right now. That's just how darwinian capitalism works with new industries. As I've said before, imo, panic is driving share price drops across the sector. There's no doubt the sector remains full of risk. But that's why we bought into the sector, right? Greater the risk, greater the reward. From what I know, there's good reason why OGI remains the one company recommended by cannabis cheerleader, ex-Canopy CEO, Bruce Linton.
To continue with the metaphor, there's every reason why they would set sail should OGI continue to show financial stability, profits and market growth. Will this happen? Its a wait and see game. As for a buyout, really, who knows? Based on current ridiculously low valuation, I would think they represent an attractive target. But then it comes down to whether OGI management
believes they are better off staying the course or
I would think that potential cpg partners would remain sidelined. But really, it comes down to how attractive is OGI?