RE:RE:One final thoughtI think if the rest of Canada is 36%, then Ontario adds 18% at least, but probably much more as an Ontario based LP.
AnthamInvest wrote: If 36% of the production is committed for the rest of Canada and Ontario is 1/3rd of the population. The total committed including Ontario would be roughly 49% as the demand/committed amount for each province has already been competed.
Although I expect Ontario to be a larger than average consumer.
starsearcher40 wrote: "Added Linton, "With an estimated 36% of the total supply committed to date to the provinces and territories, we have secured by far the deepest channel into the Canadian recreational cannabis market."
I'm actually surprised that the number is that low. Ok, we're still waiting on some kind of Ontario MOU. So let's say (being optimistic) that they get a good chunk of the Ontario order. If 36% represents "The rest of Canada", and say Ontario is 1/3 population of the rest of Canada. So lets say they get 1/3 the total order. By my rough math, that would put their supply commitment up another 4%. (36% divided by 3 (1/3 pop) divided by 3 (1/3 of Ont mou). So that makes for a total commitment of about 40%. But then add in the wildcard now of Ford's decision and what impact that will have.
The point is, that still leaves about 60% sitting in inventory. On the upside, that does give them a cushion if demand out of the gate is very strong. But if it isn't that amazingly strong, it leaves them overstocked with inventory that must have some sort of shelf life.
It's going to be fascinating to see how this plays out.