Sunniva Inc SNNVF

RE:RE:RE:RE:RE:RE:RE:RE:New Canada campus construction video

[JMark80]

There are a number of reasons why Canadian companies haven't had much interest in the US. ~70% effective tax rate compared to ~20% (tax code 280e), low barriers to entry and production limits, distribution challenges, etc. 

Sunniva4Life said I was too stupid to understand how Sunniva's convenience arragements would not have a material financial impact, compared to owning 100% of phase 1 production. Sunniva will own 1 22k sq ft licence, and 19.9% of 7 more for 5 years, so 30% outright of phase 1 for 5 years. Sunniva is essentially subleasing space and buying back a full grown plant. FRC (paid coverage) used $4 sales price, with cogs being $1/gram in their DCF analysis. The true cost will be more than $1 as the tenant has to profit and the high tax rate must be accounted for. I originally thought the licensees would essentially be in name only, that Sunniva had assembled a work around. But now I'm hearing producers such as Canndescent will be tenants? Will Canndescent actually want to sell their product to a wholesaler? Do they need to? The margins will be a lot smaller. Besides, there aren't many retail chains in California, and the ones there are such as Harborside and MedMen (which is extremely overvalued) own their production. Probably why flower supply arrangements haven't been announced.