GREY:SNNVF - Post by User
Comment by
Stackinstockson Feb 15, 2018 6:12pm
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Post# 27568194
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Renting Space?
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Renting Space?Without getting it from the company it is speculation but based on all the information it sounds like that sort of model. My only concern is how the state will see their business if they lose the lawsuit and have to limit the licenses. I would think their 'tenant's would have to apply and get the licenses granted.
Hoping they release some sort of clairification, although doubtful. Im not an expert on any of this, just trying piece together information from various articles.
sunrize wrote: Stackinstocks: You said "....
They would 'manufacture' the MJ to their customer needs and that customer would pay for the manufacturing of the whole lot (zone), basically renting factory sapce/capability." Now that makes a lot of sense. I hope that IS the case.
So which translates to:
1. SNN owns all the product produced in all 8 zones
2. SNN collects lease (rent) from 7 (or more if other "producers" want to share a single zone) and sells it to them for a slightly less cost (less compared to the sale price for their own wholly "owned" single zone).
3. The other "producers" would sell product from the other 7 zones to retail/distributors
4. So essentially, SNN de-risks their production sells from 7 out of 8 zones. What they lose by selling to these others at a lower cost, they would make up from rent collections.
Does that make sense (my theory)?
Stackinstocks wrote: Yeah it definitely changes things. I went through the prospectus again and any documents I could find and could not find any plans to use a 'rental model' so i am really hoping this was a mis-speak.
Everything I can find says they will be a white label manufacturer. The model discussed in the article is more a private label manufacturer. They would 'manufacture' the MJ to their customer needs and that customer would pay for the manufacturing of the whole lot (zone), basically renting factory sapce/capability.
Hope we can get some clarification.