RE:RE:US Exposure? Any ideas
ok i got a couple of emails on this, so I will share my response as I've grown fond of this board. For the same reasons I picked THCX, Sunniva is the safest play. They have an LTA with Canopy for 90,000 kg over 2 years to fund their Oliver facility which breaks ground in a week or two. The high end strains will probably get them 7-8/gram in revenue. This facility will produce 100,000 kg/year beginning 1st quarter 2019. They own 8 NHS medical clinics with currently 96,000 medical cannabis patients in Canada. 25 per cent of the Oliver product is earmarked for these clinics at premium margins. So effectively, the Oliver, BC facility is presold to 70 percent of its capacity. In California, they well underway with their 1st 100,000 kg facility, and they plan to propagate the first plants during the third quarter. California is infested with pesticide laden cannabis, 85-90 percent of it. New state rules require stringent testing and pesticide/ fungus free so it is anticipated that a huge shortage will be prevalent by the third quarter. Although unannounced yet, it looks as though the Cathedral City facility will be sold out of the phase 1 quantity of 65,000 kg, 50 percent of which is high margin extracts which they will be producing at their new 500/lb per day facility down the road. Listening to the CEO interview yesterday, with the recent moves by Congress towards descheduling cannabis, they are now aggressively pursuing acquisition targets in the state. And finally, they have the least amount of share dilution I have seen to date. The California facility is leased to a huge real estate development firm, whom the CEO is on the Sunniva board of directors. The Canadian facility will also be predominantly financed with a tier 1 bank as opposed to share dilution via cheap stock share purchased (bought financing). Sunniva initial IPO was only in January and their first financial release as a public company is this Tuesday. GLTA