Broken Coast Deal. I originally posted this on THCX board because some guys were commenting on the APH + Broken Coast deal. Some people think it's a bad deal... Here's my two cents.
Aphria's purchase of broken coast was not done for the capacity, but for marketing and branding purposes. The growers at Broken Coast have expertise in growing premium strains of bud and are well known in the industry. This will allow Aphria to market their products as "BC quality," and can now sell for a premium. Aphria is now well positioned for a supply deal with the province of BC. Great move on their part.
Everybody on these boards focuses on how "this company is funded to grow this much bud for this cost," while totally disregarding the marketing aspect of the business.
Example: You go to the store looking to buy a painkiller for a headache. You see Tylenol, but also a no label brand.. Both are made from the exact same substance and will serve the same purpose. Most people will buy Tylenol, even though its more expensive. THAT'S MARKETING!!
Another example.. Kirkland Vodka is 5 times distilled - exact same quality as Grey Goose. Grey Goose sells for 46$ for a 26oz, while Kirkland sells for just over 30$. (Alberta Prices). MARKETING.
This acquisition was never about the grow capacity.