RE:RE:RE:RE:RE:RE:RE:FSD Pharma Q2Since I've always approached investing from a long term point of view, I've never really worried much about the share price of this company since my first initial purchase was back in Nov/Dec at $0.86 per cent. From that point on, I continued to buy into the company with my breakeven point now at somewhere around $1.50. So, I am underwater at this point like most other members here, except for the insiders who are still picking up their shares at 2.3 cents a pop. Grrrr....................
Had always planned on holding these shares for a few years, but even I am starting to question their streaming business model now. It sounds as though the way it works is that they pay a lot of money in the front end to help the other companies to start up and in return, they are getting back a supply agreement which guarantees that they can purchase a certain amount of their streaming partner's product.
Makes me wonder why in the world should we be paying millions of dollars to become the buyer in the supply side of the agreement. Especially when Auxly hasn't been able to signed a follow up supply agreement with a single one of the provincial governments to resell their product to. As a buyer in these provincial government agreements, I am not seeing them handing over millions of dollars to the weed companies to give them access to their product. And yet Auxly clearly does have to turn over millions of dollars to have access to their streaming partners' product, apparently at cost +10%.
I actually wouldn't have a problem with this type of agreement if there was going to be a huge under supply situation in the marketplace. Although there will definitely be this under supply situation in the short term around legalization date, it would appear that virtually none of Auxly's streaming partners will have their product ready for market at this point in time and hence, probably why Auxly doesn't have a single supply agreement yet in place to sell their product.
Unfortunately, it would appear that by the time most of their streaming partners will be up and running and have their product ready for Auxly will be in a year or two from now when their will be a humongous over supply of weed. Especially since this is around the same time that all of the other LP's will also be ready to run full steam ahead and there will be
billions upon billions of grams of weed per annum hitting the marketplace at the same time.
This would appear to be exactly the wrong time for Auxly as they will then be locked into supply agreements whereby they themselves are the buyers of this over supplied product, and at the same time, probably be scrambling around to look for and find already over supplied buyers to resell this products to.
It would be greatly appreciated if somebody could please correct me in an informative manner if I am not analyzing this situation correctly?
predawn wrote: exactly and this is why people like us are pissed Chuck came out with we bought 49.9 % of FV Phrmas of which we will get 200K of dope each year sounds great and then next thing you know is oh by the way we have to pay cost plus 10% and we all say WTF?? whats that all about and now a good question comes up when if ever do we get the 55 million back and also as it turns out FV has even Bigger deals its planing and XLY have no claim to any of the other 7+ million sq ft they plan to grow thats why I took my last extra $$ and bought HUGE that gets u invoved in all phases and at cheap prices LOOK up FV they claim they will be the largest producer in the world at NINE MILLION SQ FEET }}}}}}}}}}}}}}}}
Bdiggins wrote: Nice speech but, the topic was you fluffing the numbers specifically FV
why don’t you go ahead and explain cost plus 10 % . What does that really mean ?