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48North Cannabis Corp. V.NRTH


Primary Symbol: NCNNF

48North Cannabis Corp is a vertically integrated cannabis company. It is focused on the health and wellness market through cultivation and extraction, as well as the creation of authentic brands for consumer-friendly products. Its products are categorized into Bath, Intimacy, Flower, Pre-roll, topical, vapes, concentrates, and accessories. It has two geographical segments: Canada, which is the key revenue driver; and the United States.


OTCPK:NCNNF - Post by User

Comment by xelanitramon Dec 12, 2018 11:08am
49 Views
Post# 29103236

RE:RE:NRTH - HEXO COMPARISON

RE:RE:NRTH - HEXO COMPARISONCanmoose, thanks for sharing your numbers here! Love to see how others are are crunching them. Substantial revenue is imminent for 2019, but can you confirm how you arrived at $45MM? The existing DelShen 2500kg should account for >$16MM, the G&G seems likely to come online by spring, so let's say ~$8MM. Are you assuming the remaining $20MM as revenue from outdoor realized within 2019? They said harvest Sept/Oct, and that it will be earmarked for extraction, presumably for their own branded products that will have extraction and manufacturing lag before they hit shelves and are sold. Given anticipated Oct. legalization of edibles, I wouldn't be surprised if some indoor production is also earmarked for extraction to fill the gap, for product on shelf around Oct/Nov - revenue reported with lag. It seems like shelf-life of extracted product will permit year-round sales for revenue spreading, to remove revenue "lumpiness." So, Im assuming that a substantial portion of 2019 production will translate to 2020 revenues. Albeit, margins may be HUGE at that time. For that reason, and because 2019 production should show as inventory within 2019, I still think that your target price for 2019 sounds achievable if inverstors take notice. There will undoubtedly be investors hunting down companies set to benefit from 2nd-gen products/legalization, and it will likely become priced into valuations in advance, at least to some substantial degree (or a huge degree if there's huge hype). So, in my assessment, even though 2020 may be the year for revenue charts to take "hockey stick" form, it still seems quite possible - if not likely - that 2019 is when company valuation may take that form. That's why I'm here. Alex Martin
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