MagicBeans wrote: good point. i dont think the rec gap will get filled though :)
Still waiting for word on the government appeal of Allard. I do expect an appeal only on basis of its too fast for govenment to put out a plan and they will seek to delay the ruling. Not appealing leaves untested any words or notions the current government may wish to appeal even if not the general concepts of affordable accessible medicines.
I do expect theres a chance that the government even under appeal may chose that 6 month court mandated time frame to move on its entire Legalization package. The federal budget is March 21 st and the Treaty issues can be heard in April as well. Maybe it will be a green Xmas in 2016, hard to say. I would say yes it will if forced to answer but understand it could logically take longer too.
So for Canopy its close to cash flow positive. The breakeven number of patients has been touted to be in the 10,000-12,000 patient number. That may occur in a few months like it already has at APH. The significance of cash flow positive is that dilution is less a factor. NO more cash burn, just possible acquistion dilution. 19 million on the balance sheet too so that should be sustain a decreasing negative cash position. I was somewhat dispappointed by revenues last quarter. Not because 40 % is a bad mark but because it has been 40 % growth each quarter but last quarter had the advantage of adding full Bedrocan revenues for the first time. Because of that, I expected a higher number. For those that predicted. I said 4.5 million while knowing I was adding in optimism because of CGC prior track record of exceeding expectations. Yoda was at 4.0 million, closer than I and where i would have been without the optimism factor. So for me the revenues were a miss by half a million.
It may turn out that cash flow positive takes longer than six months but thats not what the math says @600 patients added per month with various promotions utiilize to get customers in the door. Like the 5 buck MJ deal at Bedrocan or cost vaporizers. Its a way to get patients too. Maybe the number will exceed 600 because of these promotions. Medical MJ is always going to be important market. Old age demographics and recogoniton of the medicanl properiteies of cannabis increases each decade. It will be very accepted presumably in twenty more years. Bedrocan is medical and its place is assured by its quality and high tech growing.
Here is a post from the Supreme board by Steve the J,
Many liked his interpretation of the Allard ruling so I will give your eyes a chance to judge his logic yourself.
Clarification on Allard
With respect to the Allard decision: I don't think this was a factor in SL not having a bigger pop. There is certainly an impact on the industry as a whole- It does not however have a causal relationship on this particular piece of news and its impact on share price.
I'll add to that slightly just by saying the following: the allard decision impacts 22 000 patients that were grandfathered in during the second period of MMAR rescheduling to MMPR. License holders after August 2013 to February 2014 lost their ability to grow. License holders that held valid licenses between February 2014 and August 2014 were grandfathered into the new program. Many of the second phase licenses that were used in industrial grows by criminal elements had applied to MMPR thinking it was going to be the same breeze as MMAR. It wasnt and they were taken off the market, helping boost prices of marijuana and exposing criminal elements by way of application to the local police, rcmp, and inherently revenue Canada.
The majority of the remaining 22000 patients SHOULD have the ability to grow for themselves. PROVIDED THEY ARE ABLE TO PHYSICALLY. people in wheelchairs are not going to start lugging bails of soil. They will purchase quality grown and tested product from licensed and regulated producers, as is the case in tobbacco and alcohol. The MMPR program was a failure because the participats cant adequately reach the general population. Availability and accessability are the issues. People find it easier to walk up the street to a dispensary then to order from some producer. They cant smell, see or taste the product before purchase, which is how marijuana is sold around the world. The retooling of the program does not have to include full legalization to wipe out black market sources. What it does require is a laxing of the regulation. This could be done by allowing LP's access to owning storefront locations, or allowing them to mass market. WHICH WILL HAPPEN WITHIN THE NEXT 6 MONTHS- because it is mandated by the supreme court. The response will cause economies of scale to take full effect and illegal producers will be pushed out by LP's. At that point these LP's have viable business models.
Legalization will be the cherry on top.
Read more at https://www.stockhouse.com/companies/bullboard/bullboard/c.sl/supreme-pharmaceuticals-inc#dZv4729Jvgd2b2TE.99