Q2 earningswere quite average because of a horrible REC rollout but we doubled our KG's sold QoQ, a trend that should continue until full capacity. Also kept 5000 KGs of inventory from Q1 plus the 5000 KGs harvested in Q2, plus another 5000 KGs harvested during Q3, so roughly ~15,000 KGs available for Dec-Feb. The EPS of 22 cents and annoucement of a CEO change is why SP is up as P/E decreased and clear direction was given.
The Q3 topline from cannabis sales should conservatively be ~7000 KGs, assuming only ~50% product on-hand is sold with 3 months of rec sales rather then 1.5 months for Q2, at 6.30/G. This would put APHA above the 40M+ sales mark, plus the 7 weeks of CC Pharma revenues, another ~40M+.
With HC approval P4/P5, we will be harvesting 24,000 KGs a quarter, ~150M. With Diamond, 65,000 KGs a quarter, ~400M. And finally with Colcanna and Marigold, 80,000 KG's a quarter, ~500M. Add in the ~75-90M quarterly sales from CC Pharma, top line will be more impressive as we march forward.
Oil extraction centre ready in March, Germany tender, EU GMP certification. Need that capacity approval so we can get harvesting with the state of the art automation and improve costs/gram. And finally, hopefully, an equity partner, ideally @$13/sh for 10-20%, to set a floor for the share price and reduce volatility. A full cash buyout of $25+ would be reasonable, but I'd prefer equity.