Chalice Brands Ltd CHALF

Healthcare Cannabis

Chalice Brands Ltd. is a U.S. operator in the most competitive, innovative and mature cannabis market in North America. Leaders in retail, marketing and craft cultivation supported by fully integrated processing and distribution. The Company has 12 retail stores in Oregon operating as Chalice Farms, Homegrown Oregon and Left Coast Connection and is distributed nationally through Fifth & Root.

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Chalice Brands Ltd

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Post by Dazhoidenon Aug 24, 2018 7:02am

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Post# 28510257

Thesis: Why GLH will go over $0.50 without Can sales license

I'm starting to wonder if GLH will ever get it's Canadian sales license. There's no guarantee, and no guarantee of it's timing. In addition, Ontario, the biggest market has already chosen it's supplier list and GLH isn't on it. Not, that GLH couldn't sell its product to other provinces, or one of the official Ontario suppliers.

But enough with the negative, here's my thesis as to why GLH could go over $0.50 in the short term even without the sales license.

1) GLH could still set up Franchises anywhere in Canada. In the mean time, it could sell other people's products and establish their Chalice Farms store 'brand'. There's a bunch of work to be done there by franchises while the sales license is pending.

2) GLH could still partner or purchase a sales license holder in Canada - that's a bit of a stretch without GLH getting bigger in the US - which is well on it's way to happenning.

3) GLH went over $0.50 back in the January time frame, basically on sector hype alone, because their core business, as far as we knew, wasn't executing well. GLH has a solid plan now, and with their stock price on the rise, I can't see why the Tahoe and California deals would fall through. Their share-deals with Tahoe and California are now 'in the money'.

4) The pot sector is heating up again, as evidenced by recent activity across the board, and we're almost done the summer doldrums. GLH's numbers are out soon, and this time they may be able to report profitability - wouldn't that be awesome.

5) Their new expanded Oregon facility is now operational with expanded oil production capacity and they have their sales license. This is a guarantee of increased margins in Oregon. They were expected to report production estimates which they still haven't done. I suspect they will report these figures on their quarter-end report. They previously reported that sales of their fruit-chews were on a tear and demand was outstripping capacity. Well, with the new capacity, that means they can meet demand and generate greater revenues going forward.

6) Sales in Nevada, overall, have gone through the roof - and Tahoe is obviously one of the benefactors. I can see GLH getting a big revenue increase from being in Nevada, and more so after the Tahoe purchase. GLH is getting bigger people, and you have to think past a good or bad quarter end report - because the next quarter after that will be a monster.

7) All of the above combined with legalization of recreational-use hype in Canada come October 17th -- will put GLH in an excellent position (as they may still be waiting for their sales license).

8) GLH still has almost another 2 months to get their Canadian sales license before October 17th legalization. If they do get the license, then that would mean immediate new revenues reported on their next quarter -- adding to the monster.

9) Finally, GLH had about $20M CAD in cash on hand last I heard.