GREY:SNNVF - Post by User
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GOTMONEYon Jun 19, 2018 12:08pm
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Post# 28192191
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:New Canada campus construction video
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:New Canada campus construction videoJMark, consider this again. Sunniva buys back the fully grown plant. At that point, they own the plant and can pass it along to distributors/brands or distribute it themselves, wholesale or retail. But what happens before that - who grows the plants? Sunniva does. Sunniva carries out 100% of all the cultivation and production work. So this means labour and utilities, automation, control systems, trimming, quality assurance, everything. The tenants do not operate anything. Only Sunniva operates all grow spaces in the facility. The tenants decide what they want to have grown in "their" space (i.e. what the strain / end product is going to be), and Sunniva does all the work. So that should tell you something about who captures the value. They operate production on behalf of the tenants, and then they buy the product so they end up owning it as well. Essentially, this is exactly how a normal producer-distributor/retailer/brand-owner relationship would work. Sunniva's little twist just makes it compliant.