RE:RE:Aphria Part 3 expansion .....The current expansion plans has Aphria increasing quarterly revenues each quarter up to fiscal 2020. When the government allows edibles hopefully some time in 2019, that will spawn additional plans for Aphria’s participation in that market. Internationally efforts will further contribute to increasing revenues.
There will be a battle royal sometime down the road when cannabis production will be greater then demand. Sector over capacity could happen as soon as calendar 2020. A price war will commence and the low cost producers will squeeze the higher cost producers out of existence. Aphria will be well positioned to be a shark in this scenario and still make good profits while others falter. How the markets reacts to the cannabis sector at that point is an unknown but I would guess at this point money could be leaving the sector. The surviving companies may end up even stronger for the long run.
I am in this long and see steady growth till calendar 2020. When supply outstrips demand, a new game will have started in Canada. International developments will provide growth opportunities though and hopefully Aphria will have a strong foothold in these markets.
We have a good thing growing!