RE:RE:RE:RE:Citron on VFF I think we should temper expectations..
What was their expected output? 250mm grams? 250mm x $2/gram = 500mm/year revenue (keeping wholesale prices at a conservative price).
They own what 50% (now 60% I think I saw, but lets keep it easy math) of that, in which 20% of their holdings are owned. So 40% of the 500mm in yearly revenue = 200mm. Assuming margins are 50% they have 100mm in profits annually.
I think this would allow for investors feeling comfortable at a 500mm market cap, no? So without any more dilution, at full capacity in a years time, they COULD be valued at $1.10. Assuming all goes to plan.
Now that doesnt take in to account the other moves they are making, as well as their AAA facilty.
Just some quick math, im sure there are some holes in there, but just keep in mind every player thats involved, and how the equity is distributed. Add the fact that theyve been releasing shares like candy.
Im happy with management thus far, and am in it for the long haul. Right now we are banking on potential. Although management does seem to follow through...
GLTA !!