For new investors Delta 9 (TSX Stock Ticker NINE) <200M Market Cap
Something to put on the watchlist. I'll save you the whole analysis by saying that most stocks are trading above the private placement entry points. Delta 9 is trading at the PP price of 2.70, and there are warrants for 3.25. This is a great entry price ... the same as those who went through private placement.
Delta 9 is based out of manitoba canada, where the population isn't neccesarily that large, however, it still represents a significant population. Delta 9 has submitted a response to Manitoba's RFP for distribution, as they have proposed that marijuana distribution will be privatized.
Delta 9's setup cost are around 120 CAD dollars per sq foot, and they produce extremely high quality flower for this price point. In fact, this price point is similar to THCx's per sq foot implementation cost. Gram for gram cost cannot compete with THCx, but when you factor in distribution costs, the cost competitiveness of gram by gram costs are relative.
They will also distribute through Canopy's Craft grow program, which is a good partner making good headwinds in the distribution platform space.
One of the more interesting aspects of this company is that they use containers to grow in, called "pods". These pods cost about 40k to set up, and annual revenue generated from them is about 120k. It also reduces the need for complex HVAC setups in large facilities, and reduces the potential for large sq footage facilities to have problem crops ruin an entire batch. It is very interesting to see a modular approach within a warehouse facility, and they have suggested that long term will be a source of operating efficiency compared with large scale crop growers that may have difficulty optimizing an entire warehouse full of growspace.
Now, the big piece, technical analysis. You don't need it. Technical analysis has been done by people who have invested in the private placement. We are not 3 years post pp, in fact, we're in the same year. This price will not hold for long against any news.
https://www.dailymarijuanaobserver.com/single-post/2017/12/28/NINE-Delta-9-Closes-of-23-Million-CAD-Bought-Deal-Financing
https://www.newswire.ca/news-releases/delta-9-expansion-creating-new-jobs-in-manitoba-668003503.html