Some ObservationsExpect ~20,000 Tonnes of outdoor harvest with cannibinoid content ranges between 15-20% depending on strain specifics.
Extraction oils have current pricing around $35-$40/ 500mg
Current indoor supply monthly runrate is ~1200-1500kg (That equates to 18,000kg)
When extracting biomass, assume 1000mg of product for every 8 grams of biomass (~12.5% yield)
Sidenote: The current unfinished inventory that the industry sees as massive over supply that could drive prices lower will/could get eating up in extraction. When you are yielding 12% of product for cannabis 2.0 then that "oversupply" can be very misleading. Plus a number of LP's will likely go out of business. Retail stores continue to rapidly expand as well.
Current pricing on THC and CBD oils are at around $70-$90 per 1000mg
Current estimates for the single Pioneer Cannabis store is ~$15,000- $20,000/day (Do Not expect an agreesicve retail rollout. That is very capital intensive at this time)
Do not expect any news on Ignite. Nobody wanted their product and WMD exercised a backout clause.
The biggest decisions moving forward for 2020 will be capital allocation.
Some of the larger extraction players are learning that consistent cannibinoid content for derivitive products is difficult when you are dealing with many different growers. Ie Beverages MUST have consistency or the product will fail. Same with edibles. So let WMD supply the ingredients and the others can fight over the rest.
WMD can excel at this industry inefficiency by delivering consistent product form its own grow operations.
The current demand for Color products exceeds available supply with current supply agreement holders. Although more provincial agreements could be signed today, current agreements need to be fullfilled first, and that relationship and trust must be maintained.
Any other thoughts, feel free to add.