Wayland Group Corp MRRCF

Prospects going forward

[GeneralAladeen]

After going to the AGM and site tour, I was left with several takeaways. Some good some bad. 

Good. 
Facility is next level and way bigger that I thought it would be. 
Higher yeilds than they originally stated. 
they will only build as needed over and above 225k sq ft. Framework for 700k additional sq ft is already trenched and ready for base when needed. 
Cost per gram is around .60. All in packaged cost around $1.30. 
BW “doesn’t agree we will need additional financing”
spin off EU SA Australian asset to be sure there is no rec conflict from Canadian ops. 
No stock consolidation. 
Currently packaging 4500 packages per day. Majority 1 gram packages. HC amended to 3.5 gram packages now. On pace for minimum $8.2mm top line revenue (based on 5 day week 1 gram packages) Without any new facility production on line. 
Have fielded several buyout offers and turned down in favour of organic growth. 
German import license in place. 
Liquor, beer cigarette and likely Cannabis are recession proof. 

Bad
Q4 doesn’t sound like it will be a good number. 
Waiting on 20,000 viles for HC approval before they can ship. 
Seeing as how we are now Christmastime. They won’t likely be booked into Q4 rev. 
There may be some short term pain when Q4 numbers come out.
didnt love the answer to revenue guidance. Very non committal. 
Would not comment on German interview guidance, even through prodded several times. 
Felt a little like some decisions have been made without too much foresight- like stock consolidation and original name Maricann. It is apparently a swear word in Spanish (seriously??)
Stock options approved - shocker!! 
German facility approval and full retrofit up in the air until German resubmission is resolved. Didn’t get a date for this. 
$70mm spent on Langton facility significantly over projected budget. 
We may be going into a full blown bear market as the s and p chart is broken and if 2400 2200 or 2000 don’t hold.... 2008 will look like a party. 

All in all all pretty good, but will hold off buying until Q4 numbers come out as they very likely to be poor. I think they are headed in the right direction with their low cost acquisitions in SA, EU and Australia. Medical margins are enormous compared to Rec. New markets around the world softening to Cannabis use. We are well positioned to gain market share. If we don’t require additional financing, then blues skies MAY be ahead in Q2(possibly)more likely Q3 and Q4. I would say this is currently a hold for me and average down if this goes much lower, don’t expect huge returns till mid to later next year. If all goes as planned we could potentially have a billion plus market cap by next AGM. Patience is key. DYODD. 

GA