RE:ACB & LEAFpipefighter wrote: So its official, ACB paid 3.2 BILLION for what 140,000 kg per year?
Cost of production $1.48 per gram?
Aphria cost of produxction is what ? 80 cents? When the squeeze comes on the winner will be?
In my view quality and cost will win out. And Aphria in my view should have a market cap well in excess of 5.5 billion dollars given they can and will produce 255,000 kg per year. Not 140,000 kgs.
Aurora sure paid up through the nose for LEAF"s customer base then.
The greenhouse in Exeter is in rough shape. In LEAFs news releases they have stated a 100,000 kg capacity from it. Maybe if they sink about $100 million into upgrading to high tech.
If they simply upgrade to a lower tech greenhouse in better shape, 100,000 kg per year will not be achieved. Current low tech greenhouses are achieving annual yields of about 0.5 kg per 10 square feet.
It it will take over a year to get any indication what the true capacity will be. I agree that Aurora paid through the nose for what they got! And the bulk of production capacity is still a year away from producing.