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Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer


NDAQ:APHA - Post by User

Bullboard Posts
Comment by Duediligence33on Oct 28, 2017 8:42am
108 Views
Post# 26871444

RE:Quebec distribution and zero profit model

RE:Quebec distribution and zero profit modelQuebec will be looking to buy from any L.P. that can provide lowest wholesale cost so they can break the black market with low prices and no concern for profit. That puts Aphria as the leader to be able to be profitable selling with lowest COST. Cole told me he can sell wholesale $ 3 to $ 5 per gram exclusively and be immensely profitable with all in cost "out the door " of $ 1.60 and coming down with scale up of Phase 3 and 4. It looks like the prediction by Dumas on BNN of cut throat "race to the bottom" will favour the L.P. that can contain COSTS regardless how much market share they can capture with initial over expansion. Many companies attempt to over expand aggressively with no regard to costs but eventually the commodity based Cannabis market will adjust the usual supply demand price point and the survivors will be the EBITDA positive ones whomever they be. SO far Aphria has proven multiple quarters as the EBITDA gorilla leader of ALL the L.P.'s. scale up to 1 million as ft at the same location with robotic efficiency with position Aphria Very Well.
Bullboard Posts