Newstrike Brands Ltd NWKRF

RE:production vs revenue

[Updownsideways]

I'm just going off the top of my head here, but I think the lack of revenue is due to the fact HIP hasn't been selling much medicinally, and is setting up for recreational sales only? If that's the case, then there shouldn't be any revenue yet from sales. I'm sure they do sell some medicinally, but I don't think they've been around long enough to attract a high patient count. WEED ACB OGI APH are really the only ones who've been around long enough to attract a high patient count, leading to higher revenues pre legalization.

WOLFD89 wrote:
What makes no sense to me is that their website states an annual production yield of 12,500kg. Canopy growth by comparison just announced a quarterly production amount of 2528kg @ $8.43 per gram, or 10,112kg annually by extrapolation. https://www.ctvnews.ca/business/canopy-growth-reports-61-5m-q4-loss-as-it-prepares-for-legal-marijuana-market-1.3990556 So New Strike has greater production, and is set to double production in the next year. Yet their revenue is paltry, with just $10,473,407 for one quarter, with 9 million coming from CanniMed for a termination fee. https://globenewswire.com/news-release/2018/05/28/1512797/0/en/Newstrike-Resources-Ltd-Announces-First-Quarter-2018-Results.html At $8.43 a gram those 12.5 tones should produce about $105 million in revenue, or $26.3 million per quarter. The math isn't adding up, plain and simple. Can anyone explain reasons for the poor revenue generation? Many thanks, Dennis