RE:RE:RE:The model will work in Canada onceCaneIsAbel wrote: I just don't understand when you say Tilray will export its business model from Canada overseas. Tilray will adjust to the regulations of the market at hand. Canadas gov is responsible for the mis haps its that simple. Budweiser would collapse tomorrow if they had to pay the same tax structure as Tilray Brands does. In Europe the tax won't be so ridiculous. Furthermore we can't advertise or market in Canada. Other markets will be different and so we will adjust. Canada will adjust too changes are coming eventually
It's quite simple really, as Canada matures price compression will continue, so at the very least you have to find a way to produce at a profit in said market. If you opt to ignore the reality you will be faced with the same issue in each market you enter. For example; in Germany as the market opens and matures you will see price compression, this is the natural order of the free market, every company will have to find a way to keep costs down or leave the market. Same thing in the US, you have to have a model that has a path to profitability. If Tilray says it's the governments fault and does not change its model it will go out of business inn Canada, it does not matter how any time you say its not fair, same thing everwhere else you go. The runway is only so long, when jyou get to the end you won't be able to raise any money to keep buying money losing companies that only raise the top line without improving margins. Tilray oddly enough recognized this and actually came up with a new model "Craft Beer" that is an example of pivoting to the market, the odd thing about that is it does nothing to help the MJ model Tilray has in place, all it can do at best is extend the runway temporarily. Until Tilray can show an MJ model that it can make money on the shorts will never leave, it is why Tilray is the number 1 shorted stock in the sector. As for pivoting to Craft, I'm guessing that will play out like most other CPG, if Tilray sees enough success they will get the attention of the bigger players and be dealt with in the competitive beer market, there are room for small plays but the big boys will protect their market share. That said, if the beer sector is where someone wants to invest in I'm not convinced an MJ company is the most likey choice. Hope that helps clarify things. GLTA