RE:RE:RE:RE:Bedrocan Announces Management ChangeSkater wrote: "operational profitability by year end"...interesting term. Does that mean turning a profit by year end? Cashflow positive (which in my opinion is way more important)? Gross profit? I'm expecting a horrible earnings release but do love to be surprised.
On a different interview last year, the CEO said Bedrocan will be profitable if it can sell 1000KG cannabis in a year. This represents $7.5 million annually, which is 1,875,000 a quarter(250KG). My understanding is the 2015 Q4(ends on Jan 31st, 2016) will be a breakeven quarter with revenue 1,875,000$. And the following Qs, will make very stable money.
Bedrocan now has 6 approved grow rooms for growing operation. This will produce domestic product about 600 ~ 700KG, including import permit 240KG which they are selling till mid of Q2 2015, this is more than enough for entire year 2015.
So, I think Bedrocan would not open more grow rooms until they are needed. This will save some equipment cost and keep the cash burn rate low.
At the end of 2015 Q4, Bedrocan will likely have 4M~5M cash reserve. It would be very impressive if Bedrocan delivers such remarkable result!
The share price at that time, would be way over 1.5$ and the company will have a market cap over 100M$.