RE:Execution of bulidingThanks Duediligence...
I want to raise two points.
Aurora Sky will be 800,000 sq ft. not one million. Aphria's leamington campus when completed will be 1,000,000 sq. ft. Which begs the question, how can Aurora advertise their facility as the world's largest MMJ facility when we know Aphria Leamington campus is larger. Response I got and the qualifier in all Aurora's press releases is "of its kind". On that basis I am going to build a 25 sq. ft. greenhouse this weekend in my backyard and issue a press release on Monday calling it the largest in the world "of its kind" Watch for it.
The second point is capacity. Aurora is claiming that they will be able to produce 125 grams/sq.ft. while Aphria is projecting 100 grams/sq.ft. Why the discrepancy? Is Aurora over estimating their capacity or can we expect Aphria to amend their capacity going forward? Aphria has aready increased production from 75 grams/sq. ft. to 100. Should we be anticpating another increase per sq. ft.? By going from 100 to 125 grams per square foot would increase capacity by 25% without further dilution.
M
Duediligence33 wrote: its easy to SAY Aurora will build a million sq ft facility at Edmonton Airport
its hard to DO it !
As anyone who says they can build thier own home finds out you can buy land to build yourt dream home but unless you have DONE it before you are bound to have cost over runs and setbacks such as contractors for materials labour issue & permits (ACB found underground power lines to re route) etc etc. Canopy can SAy they will have millions of sq ft in NB and BC and more at Niagara but all this talk sounds good to shareholders but in 1 to 2 years who will EXECUTE.
Why do you think the Copperstate facility hired Aphria for IP. The guy I spoke to (Brian) travels back and forth and he said Cole and the Symingtons (father was governor of AZ) had tomato and vegetable business relations but the Cannabis Greenhouse know how in with Aphria.
Now the EXECUTION risks of APHRIA to get 1 million sq ft by 2018 - 2019 is mitigated by :
1. Cole Cacciavillani LIVES on the premises of phase 3 and 4 and John Cervini is also a nearby resident.
2. The local politicians are all on board and jobs produced pre empts any red tape delays.
3. The contractors are supervised daily hands on to deal witg any issues such as cement trucks electriacians plumbers and delivery of material logistics. This real as I spoke to a plumber who was unhappy when an electrician interfered on his work (stepping on pipes).
4. All the funds for the completion of P3 P4 is in the bank.
So with full confidence that by end of 2019 1 million sq ft will produce 100,000 kg selling at
$ 5 per gram rough estimate for sale to CCBO or wholesale to other LP AND with a supply shortage looming and an underestimation of demand AND with low cost production you can ask GoBlue2016 to crucn the numbers. He is an expert at this EBITDA gorilla thing.
Sales $ 500,000,000 REAL as phase 3 and 4 will get done
Profits ???
P/E ???
My quess is $ 40 to 60 dollars in end 2019
does it matter now it is $ 6-7