Chemesis International Inc C.CSI.U

RE:revenues Vs cost of goods..9.3% margins

[Slyincalgary]

These are the facts, not my opinion but directly from Chemesis MD&A:

""The first quarter presented consisted of 16-days of activities and as a result were less compared to the
following quarters."

""The Company anticipates the gross margins will improve when the Company
begins its own manufacturing and processing"

Things you posted that are easily explained by reading the MD&A, margins are low as they are ONLY from Desert Zen.....Desert Zen is a packaging and distribution arm of the company. The margins in that part of the business will always be low. The revenues from them are extremely high....16 days and revenues of 1.9 Million equates to 11.4M per quarter, I don't consider that run rate low. That is just pure math. The margins they quoted on the Investor's presentation are blended margins from all revenue arms, not Desert Zen alone.

Puerto Rico numbers are not included. Again, from the company NR:        

"On November 6th, 2018, the Company was approved by the state and successfully transferred the state Cannabis license in Puerto Rico on the Natural Ventures Puerto Rico transaction. Financials and revenues from the Puerto Rico operations are not included in the fiscal Q1 2019 Financials"

I don't want to get into a battle on these boards. If you post facts, have at it, if you post opinions that are proven wrong by company statements I will answer. I have not answered in months on these boards, but when you post incorrect statements on the company's financials I will answer, I am sure you can understand and appreciate that. If I posted incorrectly on a company you are invested in I would expect you to do that same.

Deal?

Glta