Inner Spirit Holdings Ltd. INSHF

RE:RE:RE:RE:RE:Need more fully owned storefronts

[Chrysanthalas]

Franchise revenue is pretty amazing which is why companies opt to do it.  They help a team set up each store for some upfront costs and then benefit from that 5% until end of days.  That being said, 5 million a month isn’t realistic. 160,000 a month in sales is the honest to god eventual run rate for cannabis store revenues once things have calmed down and there is competition in the market.  Thats still ridiculously good. But thats also whats really expected.

.05 x 160,000 = 8000 a month x 100 stores = 800,000 a month x3 2.4 million a quarter. 

This is the expected run rate for when Ontario has hindreds of cannabis stores though and is considered very long term.  Understand that that is still really good.  Compare that sales digure to other types of retail and you’ll quickly see that. 

That amount of money is effectively operations free and ISH would get it every month or every quarter guaranteed.  

Now, right now they have a 30 million market cap, lets say they get 30 stores open frnachised and these are all the same run rate as kingston.  For right now they’d be pulling in .05 x 1,000,000 a month ( very doable, toronto locations do 80,000 a day)
50,000 x 30 = 1.5 million a month, or 4.5 million a quarter. Thats a yearly revenue run rate of 4.5 x 4= 18 million and nearly all of that is going to be profit, not first year but after that yeah.  Price earnings will be insane and we can expect not to stay at 30 million mc for very long.  Assuming they don’t do a bought offering, and they pull in 18 million where 60% is profit thats .6 x18 million = 10.8 million/ 193,000,000 = .06 per share profit x 15 = .83 expected price.  In and around there.