RE:RE:RE:RE:RE:RE:Excellent News!!I meant that this is not unexpected good news which would drive the share price higher.
Yes this should help cost efficiencies, but again this not anything special, they are just finally getting the the point where they can fully transition, as they were originally expected to do a while ago.
If they are able to run the new plant at full capacity and sell the product then yes there should be positive effects from economies of scale. At this point there is no hard evidence that they will. Sales have been declining from where they were at the old plant. I can imagine a lot of wildy optimistic scenarios of what could happen, but that's not exactly the best investment strategy.
I think you've posted enough articles on CoQ10, avenanthramides, etc that everyone on the board is fully aware, no need to repeat it again.
digitel wrote: "This is more like - at least there isn't more bad news (as opposed to good news). Also it is unlikely that this (by itself) will lead to increased revenues (since revenues were significantly higher under the smaller facility)."
Not true. This is very positive news. Soon CZO will be able to compete using its most competitive plant without the cost inefficiencies of supporting a second plant. It will be in the most competitive plant and positon it has ever been in and the new plant has TEN times the capacity meaning significantly enhanced economies of scale. Imagine the deals CZO can bid on now with 10 times the capacity available. It is no longer constrained by a small plant. Furthermore it will also be able to offer second-generation technology that can penetrate the skin to the dermis level. Using proprietary PGX it can impregnate beta glucan with avenanthramide, CoQ10, and other bioactives.
"The recent award granted to the Company’s novel, water soluble chemical complex composed of CoQ10 impregnated on beta-glucan powder (BG), has accentuated interest from major players in the personal care and healthcare industries,” added Mr. Gagnon."
Read more at https://www.stockhouse.com/news/press-releases/2018/11/19/ceapro-inc-announces-completion-of-successful-audits-by-major-customers#JZbBScYTX5xcBxmi.99