GREY:SNNVF - Post by User
Comment by
Bluechip2on Jun 27, 2018 10:54am
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Post# 28236450
RE:Sunniva: Gift Of The Sun, Gift To Investors
RE:Sunniva: Gift Of The Sun, Gift To InvestorsThanks for posting GOTMONEY, it is quite good overall IMO. To me, the Canadian operation strategy is never quite understood or looked at in detail. For starters, there will be a 'Sun oil facility' as part of the Canadian campus as well. Around 25% of the flower, I believe, as well as the trim is going to be processed for NHS clients and others. The margins for this product will be very high as Sunniva is basically the retailer and supplier. Assuming 500 lb/day as per Cathedral facility, there will also be additional business similar to the latest two contracts for extraction and FSD product in California. By 2020, Sunniva will have planned an expansion to at least (10) NHS clinics. The revenue/clinic should grow continally due to more and more Sunniva product for clients, as well as continued patient growth.
Expecting Canada Day, July 1st, to be an important date for Sunniva in California as clean product supply issues will be clarified/ magnified. Great opportunities should exist to secure LTA's for a premium price at a lengthy duration, also guessing that these prices will provide a lot higher margins than indicated in the article.